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Archive for September, 2011

I saw this great post and thought I would share it. The author broke down the National Association of Realtors estimate for home sales in 2011 and determined that nearly 14,000 homes are being sold everyday in the United States. With 22% of all August sales being to investors, that leaves 10,749 homes being sold to “Regular” people. Why is that figure important? Because it showcases that those with a lifestyle need and the financial viability to do so are buying homes. They are taking  advantage of the lowered yet corrected prices, increased inventory, affordable choice and all-time low mortgage rates. These nearly 11,000 homebuyers a day are really smart.

I know there are many people who would love to enter the home buying process today but can’t. The economy is tough, unemployment is high and consumer confidence is low. I know, we as people are pre-wired to follow the herd. But in homeownership today, I caution you to make sure the herd has your best interest at heart.

I continually hear stories of people who just bought a home. These people looked at their individual situations and made the determination that was OK for them to be an active participant in the home buying process. Is home ownership for everyone? No. But for nearly 11,000 “Regular” people, it is. I just had a first time buyer purchase a home that needed repairs. The seller was motivated and gave the buyer credits for new flooring, interior paint and a monetary credit for closing cost. After repairs, the property sold and had substantial equity. The buyer also took advantage of the historically low-interest rates that he will benefit from as long as he owns the property. Please visit my web site at www.JohnnyBrooksHomes.com for helpful tips for buying or selling a home and easy access to view all local area homes for sale.

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When you get a mortgage to purchase a home, there are deductions that the IRS will allow. The following is a list of some deductions that people might forget when buying a home.

POINTS– Points on a home loan are tax-deductible, if they are used to bring down the mortgage interest rate. A point is 1% of the loan amount. On a $200,000 mortgage, a point would equal $2000.00. Only consider paying points if your intentions are to own your home for more than 5 years.

PRO-RATED MORTGAGE INTEREST– When you are buying a home depending on what day of the month the home closes, the buyers pay either a small or large amount of pro-rated mortgage interest. This amount is normally a couple of $100.00. What ever the amount, a home buyer can write that amount off.

PRE PAYMENT PENALTIES– Although it is rare that a home loan today would have a pre-payment penalty, on some occasions you will still find one. If your mortgage does include a pre-payment penalty and you pay off your loan early, these penalties are tax-deductible.

MORTGAGE INTEREST TAX DEDUCTIONS– As far as deductions go, the mortgage loan interest write off is a major benefit in owning a home. This is the best tax break afforded to homeowners. Mortgage interest is tax-deductible on mortgages up to 1 million dollars ( $500,000 if married and filing separately). In addition, the interest you pay on loans secured by your home and used for a purpose other than to buy, build or improve your home are tax-deductible. If you used a Home Equity Line of credit to purchase a car, the 2nd mortgage would be tax-deductible.

Please visit my web site at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view all local area homes for sale.

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Home prices have fluctuated in Davis over the last 12 years. The price gyrations have been felt throughout the rest of the United States over this same period. The comparison is based on year-to-date January 1st through September 15th of each year.

Year          #Sold          Average Price          Days On The Market

2000         635                 $261,835                  41 Days

2001         519                  $311,345                  36 Days

2002         520                 $388,972                  35 Days

2003         596                 $434,993                  36 Days

2004         622                 $508,635                  34 Days

2005         491                 $603,320                  17 Days

2006         419                 $602,108                  50 Days

2007         426                 $576,050                  57 Days

2008         329                 $533,573                   55 Days

2009         250                 $489,609                  56 Days   

2010         284                 $496,368                   51 Days

2011         291                  $486,114                   64 Days

As far as prices, the peak of the housing market was in 2005. The largest price adjustment downward occurred between 2008-2009. The last 12 year period has been anything but normal. We do expect prices to trend up again at a more traditional rate of two or three percent per year. Please visit my web site at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home or to view all local area homes for sale.

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www.tourfactory.com/780013

Central Davis single story home on a huge 9700 square foot lot. It has 4 bedrooms and 2 full bathrooms with over 1600 square feet of living space. Hardwood floors throughout, dual pane windows and a high efficient central heat/air installed in 2006. Backyard recently landscaped. Just steps to downtown and UC Davis campus. Click on Tourfactory for a virtual tour. Please visit my web site at JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view all local area homes for sale.

 

 

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When a home buyer wants to purchase a home in need of repair or modernization, the buyer normally would obtain financing first to purchase the dwelling and additional financing to do the rehabilitation construction.

The FHA 203K program was designed to address this situation. The buyer can get just one mortgage loan, at a long-term fixed or adjustable rate. The fixed rate is presently a sizzling 4.25%. The financing is for both the acquisition and the rehab of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the home with work completed, taking into account the cost of the work.

To be eligible, the property must be a one-to-four-family dwelling. The home buyer can use the 203K to finance such items as painting, floor replacement, kitchen/bathroom remodel, roof replacement, electrical/plumbing repair. You can also add the FHA Energy Efficient Mortgage and make other improvements such as replacing an outdated heat/air system, adding dual pane windows, additional insulation and a new water heater.

Funds are held in a managed account and are disbursed throughout stages of renovation to the contractor. Contact Cara Mengali at Comstock Mortgage in Davis for more specific details on this wonderful loan program. This program gives you the luxury of potential instant equity in your home after the rehabilitation.

Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale.

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Forbes magazine has named Davis, California as one of the 25 Top Suburbs For Retirement.  The survey looked at suburbs within 25 miles of a major city, and took into consideration factors such as cost of living, tax climate for retirees and community resources, like hospitals and higher-education opportunities.

Davis excels on many of these levels. The community is 15 miles east of Sacramento and is also convenient to the San Francisco Bay Area, the Napa Valley and Lake Tahoe.

The University of California, Davis provides the draw of a big school with lots of art and culture, especially taking into account the Robert & Margrit Mondavi Center for the Performing Arts.

The community is vibrant with a great farmers market, held twice a week and a walkable downtown with wonderful restaurants. Davis is also noted for its accessibility to rail travel, good weather, above average air quality and miles of useable greenbelts.

Please comment on your thoughts of this prestigious ranking and your opinion of living in Davis. Any one making a comment will be placed in a drawing for a $50 gift certificate to Target. The winner will be announced on 1 Oct. 2011

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Time is short for some buyers and owners of more expensive homes to get the best terms on mortgage loans. Starting Oct 1st, Fannie Mae and Freddie Mac will cut the size of loans they buy from lenders. That will force many future borrowers into more expensive and harder-to-get jumbo loans.

The Freddie and Fannie limits, which are generally $417,000 for single family homes nationwide, were raised in 2008 in some high-cost housing markets to stimulate the economy. In Yolo county, the limits rose to $580,000 and next month they will fall to $474,950.

Major lenders including Comstock in Davis, Bank of America and Wells Fargo have stopped taking new applications for affected loans so that those in process close by the Oct 1st deadline. With jumbos, borrowers could see a 4.5% interest rate, for example, go to about 5% according to Cara Mengali at Comstock Mortgage in Davis.

The changes will affect 2% of the nation’s homes, but more in some areas. Some buyers may lack needed down payments and others may have to consider less costly homes.

All of the news is not bleak on the housing front. Fixed mortgage rates fell to the lowest levels in six decades. The average rate for the 30-year-fixed fell to 4.12% down from 4.22%, the lowest on records dating to 1971. The average rate on a 15-year-fixed fell to 3.33% from 3.39%.

Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view all local area homes for sale.

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