Archive for August, 2008
You Don’t Need to be 55 or Older to Live in Senior Park
The Fair Housing Amendments Act of 1988 added familial status as a protected class to the Federal Fair Housing Act of 1968. It is unlawful under this act to deny housing to legal custodians or families having children under the age of 18 living with their parents, or to pregnant women. The single exception to this rule is housing that meets the definition of housing for older persons.
In order to qualify as a retirement community at least 80% of the units must be occupied by one person who is 55 or older. That leaves 20% of the units available to persons younger than 55 years of age. It’s a little known fact that many of our senior parks legally have residents under 55 years of age. This option may be ideal for buyers looking for a home in a mature environment.
Recently Sandee and I listed a beautifully renovated park mobile in River Park located next to a boat ramp on the Sacramento River. The owner, under 55 years of age, purchased the home under this 20% exemption. A meticulous individual, he rebuilt the home from the ground up. The park sits next to Anderson River Park complete with walking trails, tennis courts, horse shoes, bocce ball courts, summer concert series and more. The park has ample room to park boats and RV’s and space rents are affordable.
Sphere: Related ContentLos Pingous Rock last Marketfest of 2008
The end of summer sure has snuck up on me! Hard to believe but tonight is the last Marketfest of 2008. If you haven’t attended Marketfest before you should definitely make it a point to stop by. Buenos Aires powerhouse Los Pinguos will entertain Redding with their distinctive sound. Labeled “The South American Beatles” Los Pingous serves up a mixture of Latin rhythms, performed with Spanish guitars, a Cuban Tres, Peruvian cajón (box-drum) and harmonizing vocals that’s sure to have Redding up and dancing. Marketfest is held in Library Park behind the Lorenz Hotel. See you there!
Sphere: Related ContentTrue Love and Home Grown Tomatoes
As the song goes “only two things money can’t buy, that’s true love and home grown tomatoes”. Make that one thing. Not only are there a number of places in town to buy “home grown tomatoes” you can even have them delivered to your door. Our area has numerous small family farms and farmers markets are held throughout the week. Farmers markets are a great way shop for organically grown fresh fruits and produce. Far more fun than shopping at the supermarket. We love shopping at farmers markets and think you will too! While Marketfest is great fun and pretty well known many of the other Farmers Markets also have prepared food, beverages and music you can enjoy while browsing the stands hosted by the growers. Here is a list of dates and locations from the Shasta Growers Association;
Redding Certified Farmers’ Market
Saturday, 7:30-noon, April-December777 Cypress Avenue @ Civic Center Drive, next to City Hall, Redding
Sunday Market at Turtle Bay Exploration Park
Sunday, 9:30–2 pm, July–October
Turtle Bay Parking Lot, Redding
Tuesday Morning Redding Certified Farmers’ Market
Tuesday, 7:30-noon, July-October
1700 block of Churn Creek Road @ Dairy Queen, Redding
Burney Certified Farmers’ Market
Wednesday, 3-6pm, July-October
37288 Main Street @ Ben Franklin Parking Lot, Burney
MarketFest Redding Certified Farmers’ Market
Thursday, 4:30-8:30pm, June-Sept
Placer Street, between California & Oregon Street, Redding
Anderson Certified Farmers’ Market
Thursday, 7:30–noon, July-October
Shasta District Fairgrounds, Anderson
Can’t get out to one of these farmers markets? No problem. You can have fresh fruits and vegetables delivered right to your home or office. Both Churn Creek Meadow Organic Farm and Country Organics offer free delivery in the Redding area. You can also pay a visit to one of the many local farms on the Happy Valley Farm Trail and get your produce there.Prefer to roll up your sleeves and grow your own? Vegetables taste even better when watered with a little sweat don’t they? Even if you don’t have room for a garden at home you can still enjoy growing at one of Reddings two community gardens. Contact People of Progress for details on farming a patch at either The Garden in Enterprise Park or the Matson, Mowder, & Howe Diestlehorst Garden.
Sphere: Related ContentIs Proposition 13 Unfair to First Time Buyers?
Is Proposition 13 a good or bad deal for home buyers? This is another topic that largely depends on your perspective. Passed in 1978 Proposition 13 was intended to protect homeowners from soaring tax bills as their homes appreciated in value. It certainly succeeded in that goal and by and large has been considered a good deal for homeowners. Even the mention of reforming Proposition 13 causes quite a stir and because of this it has been called the untouchable “third rail” of California politics.
Since I am not a politician I guess I can point out that it does have some unintended consequences that warrant discussion.
What is Proposition 13?
Essentially, Proposition 13:
- Limits property taxes to 1% of assessed valuation with fiscal 1975-76 as the base year.
- Limits assessment increases to 2% per year.
- Allows reassessments to market value only when a property is sold.
- Prohibits state lawmakers from imposing new taxes without a 2/3 vote of the legislature.
- Prohibits local governments from enacting most new taxes without a 2/3 vote of the electorate.
If you have owned your home for a long time this is a great thing. But what if you are a first time buyer? Is it fair to you that you may be paying two or three times more in taxes then your neighbor on a home of equal value? The response to this is generally “you will make it up over time”. Perhaps you will. If you stay in your new home long enough someone else is bound to move in next door who will be paying even more in taxes then you. The idea that we could all benefit from a system that spread the tax burden equally among all owners of real estate would appear to be practical enough but no politician will go there. Warren Buffet was ran out of town for even suggesting that the system be tweaked to allow for adjustments to be made based on a combination of property value and the owners income. I am certainly not suggesting we give up the protections of Proposition 13 but there are some other interesting things to consider such as;
Does Proposition 13 stifle entrepreneurship? Commercial real estate is also subject to Prop 13 so a new company may have significant costs not shared by it’s more established competitors.
Does Proposition 13 favor large sophisticated corporations over home owners and small businesses ? Unlike residential real estate when a corporation is sold the transfer of the real estate owned by the corporation may not be subject to reassessment.
Does Proposition 13 influence Cities and Counties planning in a negative way? With Sales Tax as the most robust revenue source for Cities and Counties there has been a tendency to promote high yield retail development at the expense of housing, manufacturing and other job creating businesses.
These are just a few of the questions that would be worthwhile to discuss. Don’t look for it to happen anytime soon though. In Sacramento they won’t touch this with a ten foot pole.
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Should You be Scared?
What does this sign mean to you?
Well, it largely depends on your perspective. If you are an owner who is selling under duress this sign might look pretty gloomy. If the sign is hanging on the house next door to yours it may cause you concern. If you read the paper or watch the news you are being inundated with articles and story’s on foreclosures and the poor housing market and this sign might scare you.
But if you don’t own a home what does it mean to you? The truth is this sign should look great to you. This sign should look like the 30% off clearance sale sign at the department store. In Shasta County as in all parts of California houses are selling way below retail. When home prices are discounted like this guess what? So are house payments. Right now savvy buyers are picking up homes with fixed rate payments close to 2003 levels.
When will it end? There are signs that foreclosures by lending institutions may be leveling off.
This from DataQuick;
“The small increase in defaults from the first to the second quarter may indicate that we’re nearing a plateau. We won’t know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process.”
If that is the case then we could be very near that holy grail of all bargain shoppers “The Bottom of the Market”. When that happens prices should start moving back up on our next market cycle. And how that looks to you is largely a matter of perspective.
Sphere: Related ContentWhat is a Real Estate Buyer’s Agent?
The first thing you should know about working with a buyers agent to locate and purchase real estate is that it costs you nothing. Absolutely no charge to the buyer for our professional services. Buyers Agents are paid from a portion of the commission that sellers agree to pay area brokers whose clients select their home.
Because Buyers Agents are compensated in this fashion they are pretty much paid the same regardless of which home their clients decide to purchase. Why is this important? Well, lets put the process in a context that may be easier to visualize. Let’s say that you are in need of a new car. New to you anyway. You have $10,000 to spend and need a car that will hold your family of four, gets reasonable gas mileage and because you like to snow ski has all wheel drive. Those criteria narrow the field considerably, perhaps just a few models and you finally decide that the Subaru Outback is your choice. As there are several used car dealerships in town as well as numerous on-line auto sales sites you have lot’s of places to look so off you go. You visit one used car dealership after another and guess what? At each dealership they do everything they can to sell you a car from their lot. Why do you suppose that is? It’s because they work for the dealer. They don’t work for you. If you walk off their lot and buy down the street they don’t get paid. That puts enormous pressure on that sales person to close the deal on the car they have to sell. Is it any wonder that the term “used car salesman” has become a cliche? That’s a tough environment for everyone involved.
Now let’s change the story a bit and imagine that confronted with this same need for a car you enlist the services of a Buyer’s Agent to locate your car of choice, perform a diligent inspection of the vehicle and professionally negotiate your best price. Your Buyers Agent would not have any preference as to which dealership the car was ultimately purchased from as every dealership and car lot in town would have a standing offer of commission to be paid. Your Agent would have a legally binding fiduciary duty to serve exclusively in your best interests with no hidden agendas. Because your Agent knows that eventually they will be compensated for their services they are under no pressure to sell you a particular car and are free to scour every lot in town in order to find you the perfect car.
Now let’s imagine that instead of a car you are shopping for a house. Because that’s what we are really talking about here. Feel free to Contact Us to learn more about our Buyers Agent services.
Sphere: Related ContentCool A/C Rebates - Enter to Win a Prius!
There are a few days in Redding every year where you just have to have air-conditioning. Today is just one of those days with a high of about 111°.
Everyone who has A/C has it cranked up and are inside keeping cool. That puts a lot of stress and demand not just on home air conditioners but also on the City of Redding and PG&E electrical grids. Because of this both the City of Redding and PG&E offer some very attractive programs and rebates designed to help decrease energy demands during peak periods and conserve the year around. Sounded good to me. So good that Sandee and I installed a new air conditining system on our house last year and we didn’t have a bill to pay for a year while we worked off the City of Redding rebate.
Here are some details; to encourage customers to replace old, inefficient products and technologies with new, energy efficient equipment the City of Redding offers Rebates on everything from High Efficiency Air Conditioning to Cordless Lawnmowers. They also offer their customers Free Energy Audits to access energy usage and help customers conserve energy and save money. Hey, it’s free. Give them a call! (530) 339-7210.
PG&E also has a Rebate Program designed to conserve energy usage. While PG&E no longer has an air conditioner rebate they do have rebates on things like whole house fans, duct sealing, furnaces, appliances and more. In addition to rebates there are Tax Credits available on energy efficient products and improvements. They also have an Energy Audit that you perform on-line.
Another program from PG&E is the SmartAC program which cycles home A/C units between cool and fan only on alternating 15 minute cycles during extra heavy demand periods. It is controlled by a radio signaled switch that is installed on your air conditioner. I don’t think it’s available in our area yet but interesting all the same. Coming soon they say.
As I was researching the PG&E site I also found that you can enter to win a Toyota Prius, no enrolment or purchase necessary. So..while technically it’s not me giving away the car if you enter and win come by and give me a ride in it!
Sphere: Related ContentReality Check - You won’t leave your home without it.
When discussing pricing with sellers we often hear the words “but my house is better” from sellers who are subjectively viewing their home as having a higher value to buyers than the homes of their neighbors. It does not really matter whether or not their home has any valuable upgrades or costly improvements for this to be the case either. Sellers often justify their beliefs more on how they feel about their home then any measurable data. Often we are confronted with this perception vs. reality discrepancy and how effective we are in working through this with the seller has a huge impact on how successfull we can be in helping them sell their home.
Of course every Realtor deals with this issue but until now no one had really measured just how pervasive this mind set is. Well, this just out. According to a survey of 1,361 U.S. Homeowners conducted by Zillow, an online home valuation site, 62% of homeowners believe their home’s value has increased or stayed the same in the past year despite the fact that statistics show that 77% of homes declined in value during that same period. The report is titled (you have got to love this title by the way) “The Home Value Misperception Index” and is worth a read by anyone getting ready to sell. What we already knew was that this optimism is likely fueled by homeowners feelings about their house more then their feelings about their neighbors house or the market in general. In fact 75% of homeowners surveyed thought that their home will increase or stay the same in value over the next six months but 42% of them also believe that home prices will fall during that same period. Go figure.
The truth is that homes that show to their best advantage throughout the listing, are priced correctly and marketed well will sell for the most money possible in any given market. The key is knowing your market, knowing the competition, working with the right real estate professional and accepting the fact that in a buyers market you will need to be prepared to negotiate.
This article from Consumer Reports is another good read. A little reality check before you get ready to sell will go a long way in determining your success. If you are thinking of selling your home please feel free to Contact Us to discuss preparing for a successful sale.
Sphere: Related ContentBuyers and Sellers win with Tax Credit
The Presidents recent signing of the Housing and Economic Recovery Act of 2008 is not just good news for buyers. This legislation should also benefit homeowners who are selling in the starter home range to move up to a more expensive home. As I detailed in my earlier post the incentives and tax saving available to first time buyers are very compelling. In addition to the income tax deductions on mortgage interest and property taxes already in place, now first time buyers who purchase between April 9, 2008 and July 1, 2009 will also be eligible for a tax credit equal to 10% of their home purchase price, up to $7,500. This credit is available to first time buyers ( defined as those who haven’t owned a property in the last three years) who meet the income guidelines of $75,000 for an individual or $150,000 for a married couple.
Lawrence Yun, chief economist of the National Association of Realtors predicts that the Housing Act could represent a boost of 10% in the number of homes sold. With most of the homes sold likely to be in the first time buyer or starter home market (homes at or below the area median price) this should result in price appreciation within the those ranges. Buyers wanting to take advantage of this opportunity would be wise to consider buying sooner rather then later as any appreciation or a rise in interest rates will have a significant impact on their housing choices.
Likewise, sellers of homes priced in the first time buyer ranges are very fortunate for this opportunity. With a larger pool of motivated buyers for your home, prices should hold and begin to show appreciation. This may be even bigger news if you are a “move-up” seller. By taking advantage of your strong negotiating position on homes priced above the median price range those selling ”starter homes” may actually the biggest winners here.
Contact Us for more information or a list of first time buyer and move-up homes.
Happy House Hunting!
Sphere: Related ContentA Perfect Storm for First Time Buyers
A Perfect Storm for first time buyers has arrived. Currently we are experiencing a combination of depressed housing prices and affordable financing that will most likely not last much longer. Already there is pressure to raise interest rates. Keep in mind that an increase of only 1% in interest rates can increase your total monthly payment by approximately 8% and decrease your purchasing power by many thousands of dollars. For example; at 6% the total monthly payment on a $200,000 home using FHA 97% financing including property taxes and homeowners insurance would be about $1,564. At 7% the same purchase has a monthly payment of about $1,691.
If you are renting right now both those figures may sound high to you. Actually, there not as high as you might think. There is a hidden cost to rent that you may not know about and a huge tax incentive to buy before June 30, 2009 that you need to know about.
Did you know that buying a home for $200,000 using FHA financing could result in a monthly income tax savings of about $300 for the average first time home buyer? That’s a $3,600 reduction on your annual income taxes! Need a raise to make the monthly payment? Because of these tax savings you may be able to adjust your W4 withholding and increase your take home pay to put towards your monthly house payment.
You have a short window of opportunity to take advantage of up to $7,500 in interest free money that must be used before June 30, 2009. This money is available interest free as part of the recent home-purchase tax credit created by the new housing bill.
Contact Us for an easy to use rent vs buy calculator and more information on first time buyer opportunities.
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