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As a Santa Cruz Real Estate Agent, I have had the opportunity to represent home buyers and home sellers in both Short Sales and Foreclosures (REO's). There always seems to be the question which is better for the home owner of the distressed property, and which is better the home buyer of that property.
There are upsides for a home buyer in both situations, however in my mind, at this point in time it is ALWAYS easier, faster and more cut and dry for a home buyer to purchase a bank foreclosure than a short sale. Generally you know exactly what you are buying, when the escrow is going to close and who will pay for what right out of the gate with a foreclosure. In a short sale, nothing is set in stone until the offer is accepted by the lien holder, and that often can take up to 4 months of waiting. Once the lien holder agrees to a short sale it is very possible that the terms and conditions of the offer could change based on what the lien holder is willing to accept and approve.
From the home sellers point of view, always pick a short sale (after talking with a CPA). The sellers credit recovery is much quicker than with a foreclosure. The seller is able to stay in the property during the process, which allows them a sense of control. Foreclosures work for some. Home sellers often like the feeling of walking away and letting the lien holder "deal with it". A short sale is also better for the community as a whole, home sale prices are often higher in a short sale, helping to retain property values, homes are often in better condition, and continue to be maintained during the transaction.
The bottom line is neither is an ideal situation for home buyers or home sellers, but real estate professionals are better trained and educated to deal with both transactions. Please feel free to contact me if you are in the need of a astute CPA, interested in IRS information on Foreclosures or Short Sales, or just need more detailed information.
Thursday, April 29, 2010
Wednesday, April 21, 2010
Save some Dough
This weekend the San Jose Mercury News ran a great article in the Business section regarding cutting the cost of cell phone bills. I am pretty sure that across the board we would all like to cut back on those cell charges. With all the bells and whistles on smart phones today it is hard to resist the allure of having all the applications and programs available in one place on your hip pocket.
For my money, I can not imagine not having my email in my hand 24/7, and then being able to use the Internet to do on the spot Santa Cruz Property MLS searches while showing houses for sale. This system makes my business much smoother, additionally much of my client communication when they are buying or selling their homes is now done via texting.
The article provides useful web sites that provide cell bill analysis, although it warns that you will have to provide your cell number, and wireless account number.
1-BillShrink a free service that is easy to use will compare your cell bill plan against those offered by the big four carriers.
2-Validas For a small fee ($5.00 in most cases) will get you a detailed comparison of your charges ranked against six other wireless companies. This site was launched by two former Verizon Executives, nice to know where all the money I have paid them over the years went. In the example they recommend a plan that would save $480.00 annually.
There is also the do it yourself comparison shopping. I have found that calling my always friendly Verizon customer service representative, and going through my bill with them every 3 months or so usually results in a small savings or a switch to a plan that is more compatible to my usage.
For my money, I can not imagine not having my email in my hand 24/7, and then being able to use the Internet to do on the spot Santa Cruz Property MLS searches while showing houses for sale. This system makes my business much smoother, additionally much of my client communication when they are buying or selling their homes is now done via texting.
The article provides useful web sites that provide cell bill analysis, although it warns that you will have to provide your cell number, and wireless account number.
1-BillShrink a free service that is easy to use will compare your cell bill plan against those offered by the big four carriers.
2-Validas For a small fee ($5.00 in most cases) will get you a detailed comparison of your charges ranked against six other wireless companies. This site was launched by two former Verizon Executives, nice to know where all the money I have paid them over the years went. In the example they recommend a plan that would save $480.00 annually.
There is also the do it yourself comparison shopping. I have found that calling my always friendly Verizon customer service representative, and going through my bill with them every 3 months or so usually results in a small savings or a switch to a plan that is more compatible to my usage.
Friday, April 16, 2010
Buyer Be AWARE
Recently there has been much made of the new home buyer tax credit. In order to qualify for this $8,000.00 tax credit you must be a first time home buyer (meaning you have not owned a home in the last 3 years), and must meet specific guidelines concerning the timing of the offer and close of escrow. (IRS Tax Credit Info) The program was so popular and jump started our sagging housing market, that it has been extended and expanded.
Sound too good to be true?
Maybe...
Several that claimed this tax credit on their income tax are being audited. The National Association of Realtors estimates that 2 million first time buyers have qualified for the credit,along with 1.5 million repeat buyers.
Close to 650,000 correspondence exams from the IRS have arrived in our mail boxes. A correspondence exam is a request for additional information,and is the first step in an audit.Of those receiving this request 140,000 had filed for the home buyer credit.
Through the end of February more than 1.8 million taxpayers applied for the home buyer credit. Of those who have applied for the credit as many as 260,000 or 14% are now facing an IRS audit.
Too good to be true..naw, this tax credit has help numerous folks buy new homes, just be for warned, be prepared, dot those "i's" cross those "t's" and enjoy your new homes!
Sound too good to be true?
Maybe...
Several that claimed this tax credit on their income tax are being audited. The National Association of Realtors estimates that 2 million first time buyers have qualified for the credit,along with 1.5 million repeat buyers.
Close to 650,000 correspondence exams from the IRS have arrived in our mail boxes. A correspondence exam is a request for additional information,and is the first step in an audit.Of those receiving this request 140,000 had filed for the home buyer credit.
Through the end of February more than 1.8 million taxpayers applied for the home buyer credit. Of those who have applied for the credit as many as 260,000 or 14% are now facing an IRS audit.
Too good to be true..naw, this tax credit has help numerous folks buy new homes, just be for warned, be prepared, dot those "i's" cross those "t's" and enjoy your new homes!
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