There are many factors that would contribute to the decision to purchase a home now. We already know that we are in an economic recovery. We know that the two main factors that are holding us back right now are unstable employment outlook and shortage of credit to small businesses. We have proven to ourselves during these past few years that we need to stop relying on both of these things and to be more self sufficient and accountable in both of these areas.

 

A couple of weeks ago the private sector began to purchase mortgage backed securities which is a leading indicator that we are moving forward and that will lead to expanded credit for small business. Interest rates are low. There is some inventory available but not much. The housing affordability index is the best we have seen in 39 years. This is an all time great time to buy a new home and in California we have the bonus of the tax credit being extended.

 

Please do not fall prey to negativity, we have come so far. I more than most know how hard these years have been. I am still here and I am still working, raising my family, volunteering in my community, helping where needed, giving when there is nothing left to give. Remember now that all of us are families of immigrants. People that came here with nothing but a dream. Please do not turn your back on our heritage. This is the time to  rise up and do something. That something is to be the best that you can be. 

If I knew that I wouldn’t have to be at work today. Even though I love what I do. There are several factors that you should take into account when making this decision. On the plus side we have tax incentives, low interest rates, it is a buyers market and there are some great deals out there. The best deals that I see out there today are in the $650,000. to about $900,000. range. The things that I believe are holding buyers back is job security and watching the news way to much. We have been told what signs we should be looking for that would mark an improvement in the economy and they are popping their head up just a bit. Last week I was looking to see six figure improvements to the employment statistics and we did with one caveat. 40,0000. plus of those jobs were for census workers. So there is hope on the horizon.

What is the take away from this writing? Trust your Realtor and make sure that you have an experienced one. I say that because I remember the last time I bought a house we really wanted this certain home and our Realtor was hesitant about it. Every time we wanted to go and look at it again she would have 2-3 alternate properties. Thank goodness for that. She was right. We bought what she led us to and I still love that home.

I am seeing a lot of people wanting to buy land right now. I know land prices most of it out there now is at least 30% over value and diminishing. I have clients that want to purchase $900,000. land that is worth $600,000. and the best thing for them to do would buy an existing home on the same quality or better of land and the price would be in the high 8’s

So with all that said, trust your Realtor and hug your kid’s

The fantastic prune blossom tour has been officially canceled is what I heard this morning at the Saint Patrick’s Day parade. In fact I know that the rumor is true because I started it during the parade. The old timers thought it was a cute (but outdated) rumor to start. In Healdsburg we have a lot of great traditions. When I was growing up one of the big traditions every year was to look forward to the prune blossom tour. In my mind it drew as many people to town as our recent barrel tasting weekend. Of course I was little then and everything seemed bigger. Like the Matterhorn in Disneyland I was sure was much larger when I was 10.

Long before we had all these grapes planted it was all prune trees and they had profuse blossoms in the spring that would fill the air with wonderful fragrances. For weeks before the big prune blossom tour weekend it seemed like that was all we talked about. “Will it rain, oh I hope that it doesn’t rain” It was a really big deal that it did not rain because it would ruin the billowy blossoms and less people would come to town. Many of the local service clubs would have bake sales and there was a giant feed out at the Alexander Valley Community Hall. It was packed and you would eat wonderful food that the church ladies prepared as well as every form of prune food possible. It was kind of like the Gilroy Garlic Festival but with prunes.

Healdsburg was known as “The Buckle of the Prune Belt” There was even an arch over Healdsburg Avenue the proclaimed that. It was just like the Reno arch but much more embarrassing now that I look back at it. We had a semi-pro baseball team that was named the Prune Packers and they were actually very good. I have lunch with one of the former players every Tuesday at Kiwanis and I get to hear the old stories.

A lot has changed in Healdsburg over the years and as a life long resident I have to say that most of the change has been good. These are the good old days. If you are interested in finding out more about “The Prune Blossom” tour stop by The Healdsburg Museum. It is fun and there is a lot to learn. Have a great Saint Patricks day!

It is that time of year again for the firefighters bucket brigade blood drive. If you have not donated blood in the past 8 weeks please join us at the Healdsburg Fire Department from 2:30 on today, Tues, Jan 19^th. This is a friendly competition among most of Sonoma Counties fire departments. They will be serving the famous fire fighters chili and corn bread. It is a great place to see old friends and maybe save a life. For more information please contact the Blood Bank of the Redwoods707-545-1222 or www.bbr.org

 

Thank you! www.realestateofhealdsburg.com

I have been in some form of sales and marketing my entire working career. When I was a Chef for 15 years it was my bread and butter to have that knack of out marketing the competition. Of course I had the great product, I just needed to get them in the door then word of mouth carried me from there. Much like my real estate career.

I found that the best way to market is not to spray advertising all over but to target market. Pick a sector of the market that is actually looking for what you have and cater to them. When you focus you can accomplish anything. At the end of the day you will say I set my goals to low because I accomplished my goals so easily.

We have that opportunity right now but in a different fashion. April 30th of next year the $10,000. tax credit for first time buyers will run out. $6,500. credit for second purchases if you have been in your home for 5 years. You hear it all the time "There has never been a better time to buy a home". Blah, Blah Blah! Well it turns out,even though you are sick of hearing about it, it is true and here is how.

Because we have a target date to achieve our home purchase goal of April 30th this will be easier. I don't know about you but I do better when I have solid goals and deadlines.

1. Between now and Xmas choose your Realtor. You will be at a lot of social gatherings so ask around. Remember people love to tell horror stories but not good stuff so put your filter on. Some great agents do make errors but if they are the busiest and best then there will be a higher degree of minor errors. You want to work with the busiest and best don't you?

2. For the rest of the month learn all you can about the purchase process. It is simple but there are a lot of steps to it and being well educated is key. You are your own advocate. Many tools and articles can be found on my website www.realestateofhealdsburg.com Feel free to learn stuff there and if I have missed anything drop me a line, I am here to help.

3. For the rest of the month till Xmas choose the neighborhood. Target what you want and you will receive it. I suggest that you choose 3 area that you want to live in and focus there. Check out the schools, stores and any other service providers that you will need. Remember you will live there the next + years so think it through.

4. Get qualified to purchase. This step should probably be first but you could do all of the first steps at once if you are a maniac over achiever like me. If you do not like what the lender is telling you that may be a good thing. It is tough to qualify now and a good lender will not necessarily paint a rosy picture but he will give you a good solid plan. In fact that is what inspired this column. One of my prime lenders and I have a good solid target of home ownership for my previously under qualified clients. Just 3 months ago it was hopeless for them but with a good plan and coaches they will purchase between January 31st and April 30th.

5. Start looking at houses. Get a feel in your target area of the difference between a 3 and 4 bedroom. I know it drives me nuts when my clients want to look at homes that are outside of what would be right for them but it is th only way to find out what is best for you. This will be a huge longterm purchase so you need to be confident in it when you sign.

6. Be patient. Realtors try their best but we are not perfect. We must be accountable though. Ask the hard questions when you feel under represented. Your agent should be direct with answers. This is business and slackers should have been sifted out in this environment.

7. Pray, have your friends pray for you, do anything you have to to stay at the top of your game. In a perfct market with well qualifed buyers this process is an emotional roller coaster at best so hang tough.

8. I have read a lot of biographies of great thinkers, heroes and statesman and I always see one common thread. They all at the ends of their lives say the same thing. "I have accomplished all that I set out to and if I had to do it again I would have set higher goals."

Good Luck now Go Get Em !

Harney: How the 'move up'

tax credit for homebuyers

works

By Kenneth R. Harney

Posted: 11/14/2009 05:00:00 PM PST

Take a close, hard look at the new $6,500 federal tax credit for so-called "move up" homebuyers that

passed the Senate and House this month. Though it's been getting second billing to the original

$8,000 credit for first-time purchasers - now extended by Congress through June 30 - the

$6,500 credit for current homeowners just might have your name on it.

First things first: The new credit is available now. It took effect the day President Barack Obama signed

the legislation creating it - Nov. 6. This means that if you fit the key criteria - you've owned and

resided in your current home for a consecutive five out of the past eight years, and your adjusted

household income doesn't exceed $125,000 if you file taxes singly, $225,000 if you are married filing

jointly - you can claim the credit as soon as you close on a qualifying house. That could be next week,

next month or next spring. There is no "move up" requirement in the new credit. In fact, homeowners who

plan to downsize into a smaller dwelling may prove to be significant users of the credit, along with people

who are relocating because of employment changes. Some other key features of the $6,500 credit you

ought to know about: Whatever you intend to purchase, the house cannot cost more than $800,000.

The replacement house must become your main home. There is no requirement in the legislation that

you sell your current home. You could rent it out, turn it into a second home, or list it for sale later in

2010 when prices might be higher. If you plan to retain it, however, make sure you move into the new

house on the day you close so that there is noquestion it was your principal residence at that time.

Like the first-time buyer credit, the $6,500 version permits a broad range of dwelling types for your

purchase. These include newly constructed or existing single-family homes, condominiums,

manufactured or mobile homes, and boats that function as your principal residence. You cannot

claim the credit if you are buying a second home or an investment property. The IRS is required by

Congress to scrutinize claims for credits - both for the $6,500 and the $8,000 - far more closely than it did

earlier in 2009. The revised rules require taxpayers to submit copies of their settlement statements (HUD-

1 forms), along with their requests for credits using IRS Form 5405. Congress' new rules also prohibit

individuals under the age of 18 or who are counted as dependents on another taxpayer's filings from

claiming the credit. Homebuyers in 2009 - those who go to closing after Nov. 6 but no later than Dec. 31 -

can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly,

eligible purchasers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. If you

aren't sure if you can make the deadlines established for the new credit - a binding contract by next April

30 and a settlement by June 30 - do not assume that Congress will provide another For an excellent

consumer resource on both the $6,500 and the $8,000 extended credits, go to

www.federalhousingtaxcredit.com , which is sponsored by the National Association of Home

Builders.

Thank you Ken Harney of the an Jose Mercury News for allowing me to post this great article

Contact Kenneth R. Harney at KenHarney@earthlink.net

.

Harney: How the 'move up' tax credit for homebuyers works - San Jose Mercury News Page 2 of 2

http://www.mercurynews.com/business/ci_13783230 11/16/2009

I love the movie Willow. If you get a chance to see please do. There is a point in the movie where Willow, a little person with a HEART OF SOUL, that the village is depending on faces a great challenges and a the sorceress tells him "Patience Willow" I do not know why that stuck with me so but it did. Willow was the underdog having to persevere all these great challenges, a heart of gold, fearless and yet so human. In the end he wins and the key was patience. It has all the great elements that you need in a movie.

The same holds true for a short sale. If you stay on track and make it your passion you will prevail.

I heard this morning that there will be 10 times more short sales next year. On the face of that it sounds bad but it is not all that bad. Consider the sellers, they will be in a better position and not ruin their credit in a foreclosure. The lenders will be dealing with this better. A couple already have. It will help stop a global collapse of the worlds economies. AND you get to know your Realtor really well after 6 months.

So with all that said I hope you all have a great Thanksgiving, if you eat enough turkey you may be able to sleep till your short sale closes!

 

 

The following is a letter to all C21 Brokers for our C21 President. I am proud to say that I am one of the Realtors that sent a lot of requests to our representatives to extend this credit. I am also grateful that they responded to my emails. Thank you!

 I have some good news to share with you. Today, the U.S. House of Representatives voted by an overwhelming 403–12 margin to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The bill already passed in the U.S. Senate yesterday, so now it will advance from Congress to the White House for President Obama's signature. The Administration already has signaled its support of the Homebuyer Tax Credit amendment as well as the President's intention to sign the bill into law.

This is an historic moment for our industry as well as the culmination of more than a year's worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in CENTURY 21 Real Estate's numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy's instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.

Senator Johnny Isakson (R–Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D–Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D–Conn.), his own lead staffer, Chris Cook, and Realogy's CEO:

 

"Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place," said Isakson.

 

On behalf of the entire CENTURY 21 System, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson's remarks are a clear validation of what we at CENTURY 21 Real Estate already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.

Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update century21.com and 21online.com with detailed information for your sales associates and all homebuyers and sellers.

In closing, I'd like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.

Tom Kunz

Fall is in the air and I am in the mood to reflect on the past year. My mentor Beth and I have had quite a year in real estate and our community. Some things are constant and other things are a moving target. The constant things are we are here every day helping people with Healdsburg, Windsor, Geyserville and all Sonoma County real estate issues, community issues and personnel issues. Our families are healthy and we have high hopes that our best days are ahead of us. The other things that are constant are our love of this business and our competitors in this industry. Beth and I attend many MLS meetings a week and I am in awe of the great people that I am surrounded by and how although we compete for the same business we are all there to help each other and build our community. For instance, on November 12th we will have our annual golf tournament that benefits our local food pantry and the animal shelter. For an entire day we will all band together to help those that can not help themselves. Today I will be doing fundraising for the Forestville youth park. There will be a lot of us out there doing the best we can to help the youth of our community.

This may appear to be boasting but it is not. Please do not take it that way. I need to hear myself share this. It reminds me that even though these are difficult times at best, raising a family is tough and that making ends meet are sometimes overwhelming with the holidays ahead that I am surrounded by greatness and loving caring people.

So thank you for all the encouragement and kind words when we meet on the street. Thanks for all the great business referrals. Thanks for giving when there is not much left to give. Enjoy your day It is going to be a great one with many better just ahead.

 

 

 

Good Morning!

The following column is from our monthly newsletter. If you would like to have information like this sent to you drop me a note and I will place you on our list.

Did you know that many people have their homes appraised even when they are not in the buying process? When refinancing your mortgage, applying for a home equity loan or trying to remove your PMI (Private Mortgage Insurance) requirement, an appraisal is typically necessary.

There are many reasons why you might need to have your home appraised, many people have their homes appraised even when they are not in the buying process. When refinancing your mortgage, applying for a home equity loan or trying to remove your PMI (Private Mortgage Insurance) requirement, an appraisal is typically necessary.

An appraisal is an objective, impartial and unbiased opinion about the value of your home. To determine this value, an appraiser looks at your home’s location, size, condition, amenities and improvements as well as the recent sale prices of comparable properties. An appraisal is different than a home inspection, which assess! es your home’s condition.

Homeowners who are thinking of selling will find an appraisal helpful in establishing the listing price by pointing out which repairs or fixes are necessary to warrant this price and whether any home improvements, such as adding a third bathroom, would enhance the home’s value enough to justify the expense and an increase in the listing price.

Lastly, an appraisal is a must if you want to petition for a reduction of your property taxes. I will tell you more about this process in another newsletter.

If you are thinking of having your home appraised, please let me know! I can provide you with a recommendation for a professional appraiser. I am your resource, here to help you with your real estate needs.

 

Considering the Contract

Money, people and the law are primary elements in any real estate sales contract. A valid real estate contract must be in writing and must have been freely offered by the buyer and accepted by the seller. All parties to the contract must be legally competent to do business. Money or other valuable consideration must be exchanged for title to the property.

Keep in mind that if things go wrong, the buyer could require you to sell your home to him or pay damages. You should be familiar with the terms of any contract you give to a would-be purchaser.

Consider the contract as a whole. Is it slanted in favor of the buyer? If so, consult with your attorney about making changes. Analyze the document as a series of paragraphs or clauses, each written to benefit one party or the other. Carefully evaluate them one by one.

Key Elements of the Contract

Price and terms
If an insultingly low offer comes your way, remain cool until you've examined the terms. Nothing evokes a more emotional response than a low bid. Be realistic and objective because most properties don't bring full price anyway. Don't use price alone as a reason not to counter or negotiate. A first offer may reveal what's most important – price or terms – to this particular buyer, giving you the key you need to begin bargaining.

Condition of home and inspection
The purchaser should have the opportunity to have your home inspected for soundness of construction and state of repair. Include all mandatory and voluntary disclosure statements concerning the condition of the property including known defects in the contract.

Watch what you guarantee. Occasionally, a purchaser asks a seller to guarantee that the roof won't leak, the heating system won't go out or any number of other such assurances. Don't do it. Once you have sold the property you are no longer responsible for it.

Response deadline
You'll be asked to respond to a contract offer within a specified timeframe - say, one or two days. Try to get as long a response time as possible. You may get other offers and you'll want to buy time to review them and perhaps use one offer to increase another.

Settlement date and occupancy
If you're selling your home because you have another under contract, seek a settlement date that will enable you to take your sales profits to the next closing. Be realistic; the buyer of your home will probably need at least 30 to 50 days to arrange financing and come to closing.

Finalizing
Everything in the offering contract is negotiable. Decide what is important and what doesn't matter that much to you. Changes can be inked in over or next to language on the contract, or a new contract can be drawn from scratch.

When everyone has agreed to the terms, initialed the changes and signed the contracts, you've got an agreement binding on all parties. All that remains is the removal of contingency clauses, arranging of financing, clearing of title and other steps on the road to settlement.

 

In the past couple of years I have had too many dear friends pass away. I have been working on a piece to honor them during that time but it is just not quite good enough to post, These people mean too much to me and I do not want to cut them short.

I can not wait to do something for them though so here it goes. This is for my friends and family that have left us recently. You have been such an influence on me and I miss you dearly. To name just a few, Kay Hopkins - my Godmother, Bob Young - my friend, Bonnie Hembd and Arnold - my friends, Mitch Mitchell - my friend. The list is too long and I do not want to miss anyone.

This is for you and what you have done for me,

The Starfish

A boy was walking down the beach one day and a starfish flew out of the water and landed on the beach. He picked it up and threw it back and as it hit the water 2 more flew out. This went on for some time and the boy was frantically trying to keep up. Right then an old man came walking down the beach. He said " little boy you can not help them all, it is useless" The boy threw one more back, then turned to the man and said, "it made a difference to that one didn't it".

To all of my friends, Thanks for making a difference. Thank you for your love and support.

Best Regards,

Bob

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You’ve found the mortgage you want and you’re ready for the next step - the loan application. The process costs anywhere from $100 to $350 and is usually nonrefundable. Lenders levy the fee to cover the costs of running credit reports, filling out mortgage-insurance applications.

What to expect

You will need raw material, and lots of it, for the application: income and balance-sheet figures and evidence, copies of past income-tax returns and the title to your car. Take the paperwork you gathered during the prequalifying process with you. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Be prepared to provide the name and phone number of someone who can verify your financial information – most likely your employer’s personnel office. If you have substantial nonsalary income from investments, you’ll be asked to substantiate this through an accountant, stockbroker, trust officer or similar source.

Application forms are usually filled out during the interview with the help of a loan officer, but you could fill them out at home and return them.

In addition to the application fee, you may be asked to pay a "loan origination fee" or "prepaid point" – typically 1 percent of the loan amount – when you apply, before approval is made.

Find out what will happen to your origination fee if the lender decides not to approve your loan. Will the 1 percent origination fee be refunded? Get the answer in writing before you pay.

From the time you submit your completed loan application – and appraisal and credit reports are received – the lender has up to 30 days to approve or reject your request and inform you of its decision. Make sure you haven’t been forgotten or put on the back burner. During the process, remind the loan officer of your settlement date and check on their progress.

Now it is time for you to look deep into your heart (and bank account) and decide if you are ready to buy a home. Finding your motivation and specifying your wants and needs is a good beginning, but there are other things to consider before taking the leap into home ownership. What's your financial situation? What's your debt load? Credit cards, utilities, car payments, childcare and groceries are factors to consider. Don't forget the money for a broken air conditioning unit will be coming out of your pocket. Will you be able to handle unforeseen emergencies, monthly bills and a mortgage payment? As a rule of thumb, no more than 28 percent of your gross monthly income should be used for housing payments. How's your credit history? Delinquent credit card and bank payments, past bankruptcies or a student loan that's unpaid can severely affect your ability to get a mortgage loan. There are many sources to get a free credit report. You can go online to find out your current credit score. Below are a couple of other sources. Credit Unions: Experian 1-888-EXPERIAN (397-3742) Equifax 1-800-997-2493 Trans Union 1-216-779-2378 What's your employment history? If you have been working continuously for the past two years, a lender should consider this to be steady employment. This does not mean that to be approved for a mortgage loan you need to have worked at the same place for two years; in fact, job changes can be favorable, especially for an increase in pay. However, if your work history has not been continuous for the last two years, as long as you have a reasonable explanation for any breaks in employment, you still may qualify for a loan. Have you saved money for a down payment and closing costs? In addition to the amount of money you will have to borrow for your home, the lender will require you to invest, in cash, around five to twenty percent of the purchase price toward the loan. If you are looking at a $100,000 home, a ten percent down payment would be $10,000. Closing costs are additional expenses incurred throughout the buying process that must be paid for in cash, like attorney and inspection fees, escrow charges and document fees.

There are huge new rules in place regarding the sale of non owner occupied rental homes. It is a paragraph that is embedded in the new economic stimulis package. I have read the package and we are gaining quite a bit but if you have a home that is being used as a rental home and plan on selling it beware. There are huge caritol gains taxes. The way around that in the past was to live in the home for 2 out of the past 5 years. A lot of that is going away soon, There are ways to avoid it but you must act soon. We are waiting for the postion papers that will clearly define this area of the tax code. If you would like to receive this information as it comes in give us a call or email us and we will keep you up to date with the latest information.

I feel as though I have missed something or is it that we get so over run with advertising that we miss some of the messages. I know that in this case I have missed the message. I thought that this GREEN THING is just another way for retailers to market their wares.

I was listening to a speaker at a seminar tell about how this GREEN THING is in its infancy and that it is not going away. It will be another revolution and we are at the same stage as when the first Apple computer was built. When I heard that it woke me up. When I look at it from that vantage point I have a changed perception as to what this really means and that we have hope of getting off oil. Just a few years ago that would have been unconceivable. Good Job America!

I talked with quite a few people this past weekend and they all had the same opinion as I, that this is just a fad. After just a few minutes of discussion they were easily persauded that this GREEN THING could be long term and A new paradigm. I was not even trying to sell it.

I know that at our house we do a lot of things right and I am thinking that is why I was not a beleiver, I am a GREENY. We have hardly any trash, the recycle bin is full every week, we wash in cold, we drive little and walk a lot, we have not bought papertowels for years, We raise organic veges, we raise our own chickens, we do not air condition(we use the night air). OMG I'm a GREENY

 

 

I am involved in my third short sale as the buyers agent. When we did our first one it wnet so smooth with only one lender involved. We closed in a nice amount of time. The next one had two lenders to get approval from and the sellers agent was about as good as you could ever ask for but we still ran out of time before the second lender could make a decision. I am now on a new short sale with two loans from the same lender. Anybody doing a bunch of these that has any NEW information. I always have the qualified buyers and all the paperwork executed.