Archive for November, 2008
The Art of Selling
If you are purchasing a home or getting ready to sell a home and the kitchen or bathroom cabinets are looking shabby here is a great tip. Use Watco Danish Oil to give the cabinets new life. You can find it at your local home improvement center. For about $10 you can make the cabinets look practically new again.
I stumbled across this product while getting one of our rentals ready in between tenants. We had paid about $1,000 to have the kitchen cabinets refinished in one side of our duplex and we were getting ready to do the same thing on the other side during the next vacancy. It so happened that we had someone who needed to move in just two days after the previous renter had moved out and did not have the time to have cabinets professionally refinished. It’s important to us that our rentals are in superior condition and I really wanted the cabinets to look good so I picked up the Watco Danish Oil and gave it a try. Amazing! I’m serious, for about $10 and half a days work the cabinets looked like new. A couple of pointers if you want to give it a shot.
1) Get the cabinets very clean with TSP or similar.
2) Use a 3M Scotch-Brite to prepare all surfaces.
3) Rub in Watco Danish Oil
4) Buff with soft cloth
Your done! Try it and let me know how it works for you.
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First Time Buyers
Happy day after Thanksgiving everyone! Not sure if that’s a recognized holiday or not but does not seem to be a regular work day. First order of business is to get down to the gym and get a few miles in after yesterdays meal(s). Quick note before I head out. Recently I have set up two enhanced MLS search systems for home buyers. Both feature new tools that allow you to create your own search criteria, change searches, create multiple searches, save properties to a notebook, compare prices on active and closed listings and more. Way better than the old system where I had to set up your search and e-mail it to you. Now you can be in control of your online experience.
The two systems can be activated from this page. For the “Flex Portal” system look on the left sidebar of this page and click on SEARCH THE MLS. You will be taken to a page where you can enter your criteria and you can start your search. To get set up on the “Home Buyers Scouting Report” look on the right side of the page and click on the banner “#1 Home Finding Service on the Web”. This will take you to a page with a video that explains how this system works. It has the features of the Portal site plus some enhanced features that I think are really attractive including the best MLS aerial imagery I have seen. Either way, a huge advancement in your home shopping experience.
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Random Thoughts
Sandee just reminded me Thanksgiving is this Thursday. We certainly have allot to be thankful for and in the rush of the everyday probably don’t really reflect on it often enough. This year in particular I am thankful for the many wonderful organizations that help serve the members of our community who are experiencing difficult times. Because of the work of non-profits like
People of Progress,
Redding Loaves and Fishes, the
Good News Rescue Mission and the
Salvation Army many who might otherwise go without will be served this Thanksgiving. All of these folks work year around to support the most vulnerable members of our community and deserve our gratitude. More than our gratitude they need our support. If you are in a position to help through a donation of time, food or money you can bet they will appreciate it.
As an inspirational musical tribute to the work of all of the wonderful people in service to our community today’s featured video is Phil Keaggy’s “
Salvation Army Band“. Have a great Thanksgiving everyone!
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Random Thoughts
Yesterday Sandee and I stopped in at the farmers market held each Saturday at Redding City Hall. We picked up some veggies for the week, grabbed a couple of tamales and walked over and checked out the
Sculpture Park.
We had seen the fly fisherman sculpture and some of the mosaicultures while driving down Cypress Avenue but we had never actually walked through the park. What a cool place! If you have not yet been to the Sculpture Park check out
today’s featured video. We just happened to have our trusty digi-cam with us and took a few photos to share with you.
First Time Buyers
As a first time buyer starting your home search you are probably considering the type of home, features, location, etc. that you would like to purchase. One type of home you may have overlooked is a duplex,triplex or fourplex. For many first time buyers this is an option that really works out well.
I can tell you from personal experience that buying an income property as your primary residence might be the best decision you could make. I know, I did it. A number of years ago I was between homes and renting. A single Dad at the time, my Son and I lived comfortably enough in a rental condo, that it is until it was put up for sale. So, we moved to another rental house and guess what? It went on the market about 6 later! Once again we were moving. It was apparent by that time that renting did not give me the stability and control of my situation that I preferred so I started looking at home purchase opportunities. Trouble was, the projected payments were so much more than the I rent I had been paying I was going to have to make some serious budget choices. In fact, without raiding my 401k it was borderline impossible. I started considering alternative plans. Keep renting? I knew long term buying was my best choice but how? It was then that I came up a plan to have a renter help with the mortgage. I did not however want a roommate. Solution? I bought a duplex. The cost was about the same as a single family home but with the rent I collected my expenses were basically the same as when I was a renter. Since it was my primary residence it qualified for FHA financing and I purchased with just 3% down payment. Not much more than a security deposit and last month rent. Because a duplex is very easy to convert from a primary residence to an income property there is no need to sell when you decide to purchase a single family home in the future.
We have done just that. Sandee and I still own our duplex and it more then pays for itself while it increases in equity and ultimately will provide income during our retirement.
The same thing can’t be said for the house most people live in. Sure, years from now you could downsize but unless you have moved through a series of price ranges to an expensive home will that really provide significant income? Probably not. I think most people are going to have developed a certain expectation of lifestyle by that time and not likely to move back in to a starter home.
Being a landlord is not for everyone of course but we have found it to be rather rewarding both financially and personally. We have tenants that we really enjoy and by making sure to carefully screen before renting we have so far avoided the nightmares that some landlords have experienced.
At this time there are quite a few income properties for sale in Shasta County. Many of them are priced below single family home prices and are definitely worth consideration to any first time buyer interested in developing long term wealth.
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First Time Buyers
Just in case you did not see the
headline on the local page of today’s newspaper, and why would you? Does anyone actually get the paper anymore? 75% ads and 25% “news”! Anyway, the article notes that Shasta County home affordability has reached the highest level in more then four years. The combination of mid-2004 level home prices combined with very low interest rates has made home buying a realistic option for many in our community who may have thought that they had missed the boat a couple of years ago. The article goes on to quote Dave Forseth from the City of Redding DAP program regarding the influx of buyers who qualify and are using down payment assistance financing. If you qualify, buying a home using
DAP financing can result in some pretty low monthly house payments.
If you were to buy this home using
DAP plus financing and qualified for the $60,000 down payment assistance loan with the required 3%, $4,935 down payment your total monthly payment, including taxes and insurance would only be about $790 per month. Probably less than what you now pay in rent!
Keep in mind that you need to enroll and qualify for the DAP program
before you make an offer to purchase a home so it is very important that you do so before shopping for a home. The best way to do this is to start at a good lender who is familiar with the program. Feel free to call or
e-mail for more information, we will be glad to help.
As first time buyers agents we are very excited about the recent increase in home affordability. We have many clients who have already taken advantage of this unique moment in time to better their lives and look forward to being of assistance to anyone interested in taking this step in the future.
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About Redding, Run-Bike-Hike
Sandee and I made the decision a couple of years ago to purchase a home located at one of the trail heads to Lema Ranch. For several years each morning we had been driving to this McConnell Foundation owned trail system for our daily walk or jog. We enjoy the time spent on the trails so much that when our house came up for sale we knew it was the right choice for us.
With 8 miles of trails set on a combined 380 acres of open space the Lema Ranch and Churn Creek Trail system is an oasis of natural beauty and the ideal place to get a little exercise while enjoying the sights and sounds of nature.
Located on what was once a working mule ranch owned by Chuck and Peggy Lema the trail system and ponds were enhanced and developed by the McConnell Foundation in 1997 and is open to the public daily from dawn to dusk. The 4 paved miles of trails at Lema Ranch take you around several ponds and offer spectacular views of Mt. Shasta and the Western Ranges.
A number of Redding neighborhoods are fortunate to have direct trail head access including Hacienda Heights, Alder Creek, Blackhawk, Edgewood and College Highlands. For those who come from other parts of town the main parking lot is located across from Mt. View Middle School at Hacienda. There is a restroom located at the parking lot as well as on the opposite end of the Ranch at the Lema Road trail head. There are many benches set along the trail for those who need a rest or just to sit and enjoy the views.
The paved trails at Lema Ranch are reserved for walkers and runners only while the gravel trails in the Churn Creek Trail system are open to bicycles and allow dogs on leashes. To access the Churn Creek Trails park at either Minder Park in the Edgewood area or the end of Tidmore at the north end of trails.
The McConnell Foundation has been a great neighbor and the employees who work at Lema Ranch do a wonderful job in keeping the trail system maintained and are always ready with a smile and a wave. Give us call should you decide as we did that living on the trail is the right lifestyle choice for you. We will be happy to send you a list of homes for sale that access Lema Ranch.
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First Time Buyers
As a first time buyer one of the big questions you probably have is how much more is buying going to cost you per month as compared to your current rent. You might think that is as simple as finding out what your total house payment, or Principal, Interest, Taxes and Insurance (PITI) will be and subtract from that your current rent in order to compare. Nope. By using that method you are not taking into account the income tax benefits of the mortgage interest and property tax deductions not available to renters. To help explain I put together this tax benefit calculator that can assist you in determining your true cost of renting.
| Loan Amount |
|
Rate |
|
Annual Interest |
|
Annual Prop Tax |
|
Tax Deductible |
|
Tax Rate |
|
Tax |
|
Monthly Savings |
| |
|
|
|
|
|
based on1.25% |
|
|
|
|
|
|
|
|
| $200,000.00 |
|
6.25% |
|
$12,500.00 |
|
$2,500.00 |
|
$15,000.00 |
|
20.00% |
|
$3,000.00 |
|
$250.00 |
In the example above I am using a loan amount of $200,000 and a fixed interest rate of 6.25%. With those terms the annual interest that you pay as part of your total payment (PITI) would be $12,500. In Shasta County our property tax rate works out to be about 1.25% so the annual taxes (PITI) are $2,500. Both of these are deductible items on your income taxes. In order to determine the monthly savings you will need to know your income tax rate (20% rate used in example above). You then take the Tax Deductible Amount X the Tax Rate and divide by 12 months. The resulting figure is the amount of money that you pay the IRS each month in addition to your rent. Using the example a person paying $1,000 per month in rent to the landlord is actually paying $1,250 per month in combined rent and tax. That amount is the more realistic figure to use when making a rent vs. buy comparison.
Keep in mind that this does not account for things like future rent increases, equity opportunities and the stability of ownership. I have to put the disclaimer here that I am not a CPA and you are encouraged to talk with a tax professional on how home ownership benefits you. Contact Us if you would like to have this tax calculator (excel spreadsheet) e-mailed to you.
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About Redding
Recently we had the opportunity to attend the ”final dress rehearsal” for Bleachers Sports Bar & Grill set to open in Redding on Nov 12. Very impressed! The first thing you notice when you walk in are the video displays, large TV monitors everywhere with everything from football to MMA which can be viewed from any seat in the house. The decor is sports all the way with benches created from snowboards and zebra striped staff tending bar and serving food and drinks to the many tables located on the restaurant floor. The food menu has choices for everyone and the beverage selection is
huge. At our table we ordered fish and chips and gyros and both were very tasty. The fries are served hot and crispy and the beers are frosty cold.
Bleachers, owned by Travis and Tyree Bolton is
located at 2167 Hilltop Drive and is sure to be a popular hang out for locals as well as visitors staying at one of the many hotels on the Hilltop strip.
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The Art of Selling
Losing a home through foreclosure is a personal tragedy with neighborhood and community consequences. The emotional impact of being evicted from your home so publicly is bad enough but the realization that your loss will have severe negative consequences for your friends and neighbors can be overwhelming. Friends next door, who you may have shared a weekend BBQ or even just a daily hello watch on helplessly while the neighborhood slowly changes for reasons beyond their control.
By now most people have seen the homes with the dead lawns and look of obvious abandonment throughout town. Notices tacked on the door or pasted in windows reinforcing the fact that these homes sit vacant as a result of foreclosure.
If you are unable to make arrangements with your lender to work out an agreement that allows you to stay in your home a short sale may be your best option. Not only will a successful short sale lessen the financial impact of a home loss it will also enable you to avoid the most devastating emotional consequences of this unfortunate event.
Homes being sold as short sales look no different then any other home for sale on the market. You live in and maintain the home just as any seller would. A successful short sale does require some specific expertise by the agents involved and there are a number of
steps involved in the short sale process that are critical.
A successful short sale is certainly no ones idea of a happy ending and working hard to keep owners in their homes should be the objective of ever
yone serving in the real estate industry. However, if you find yourself in a situation that can’t be resolved in a way that saves your home you may be able to lessen the impact on your neighborhood.
Contact Us for more details.
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