About Ventura County, CA

Earlier today the House of Representatives voted 403 to 12 to approved legislation to extend and broaden the homebuyer tax credits. The Senate had already voted and 98 to zero for approval. Over the course of the last several months I have seen Simi Valley home buyers have been snapping up properties in an effort to get their share of the $8000 tax credit. With the expiration date set for November 30th there much speculation about extending and expanding the tax credits and what form they may take.

The National Association of Realtors is one of the largest political lobbying forces in the United States which represents not only my industry, real estate agents, but also represents the interests of property owners and homeowners across America. The National Association Realtors fought hard to lobby Congress to extend and expand this tax credit. There is no doubt that NAR's efforts played a big part in today's victory.

Here are some of the points of the new expansion and extension.

• First-time homebuyers credit can total up to $8000
• Existing homeowners who have owned their home for a minimum of five years can apply for credit of up to $6500 on their purchase.
• April 30, 2010 is the cutoff point for buyers to put a purchase under contract.
• Any purchase under contract prior to April 30, 2010, will have until June 30, 2010 to close escrow.
• Those claiming the credit on their next tax return will need to attach proof of purchase with their return.
• Income limitations have been raised to 125,004 single buyers. And 225,004 couples.

The credit is based off 10% of the purchase price with the maximum credit of $8000 for first-time buyers and $6500 for move up buyers. California purchasers should have no problem hitting the maximum amounts as our base-level homes far exceed the national medium home price.

All that is left is for President Obama to sign the legislation.

It looks as if the shorter time frame coupled with the 60 day escrow. Expiring June 30 is an indicator that this program will not be continued. If the tax credit is a big factor in your next home purchase your window of opportunity is very small. Simi Valley has been experiencing historically low inventories in the entry-level market, combined with low interest rates and the decline in pricing, competition among buyers will remain brisk.

One advantage from now until Super Bowl Sunday is that many in the real estate industry go into hibernation mode. This could create opportunity for buyers who are persistent and diligent in the process.

Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

We all tend to judge a person by how they look. We will also judge by the color of the skin, the tattoos on the arm, the way words are spoken, and a thousand other ways. When will we learn that we really are doing a disservice by judging a book by its cover. If I would have judged in the first year of my career, I would have missed out not only on a business relationship but also a fine friendship now for many years.

The whole family came into the high-priced Simi Valley real estate listing I was holding open. They looked like real schleps! Like they just threw on the clothes and tennies. Hair messed, torn jeans...I figured they were just open housing. Didn't get much chance to talk with them, but I kept in touch, heard about their business out of the garage in the first-time homebuyer tract and how they wanted to buy a high-priced home. How, I couldn't figure out, as they looked like they couldn't afford anything.

Guess what! These folks outgrew their home as their business in the garage needed a commercial property, they wanted to sell their little first-time homebuyer home and purchased a big, beautiful new home that is a Simi Valley luxury home. Who kept in touch with them throughout the years? Who helped them with their purchases when it came time to locate Simi Valley homes for sale? And who would have lost out on a friendship that has lasted all these years?

I didn't lose...I didn't judge a book by its cover.

The days of flagrant overbidding may be coming to an end- even for well qualified investors- unless it's an all cash offer. One of our local Ventura Real Estate Brokers who does a lot of business in REO'S has reported a new trend on the part of the seller/ lenders.

Typically, what we've seen with multiple offers is buyers offering far over list price and value just to be "the chosen one". All the while you're head is straining from the HIGHEST AND BEST OFFER guessing game. The logic is that if it doesn't appraise, the seller will negotiate a lower realistic price rather than put it back on the market and start over.

I'll admit to being guilty of this because, after all, I have a selfish streak and I want MY buyer to get the property after I've written 8 realistic offers and gotten knocked out by those pesky over-bidders. It's particularly daunting if you have an FHA or VA buyer...(picture PeeWee Herman in the ring with Mike Tyson- not a pretty sight, eh?)

So now if they're considering accepting an offer absurdly over market value, they require the buyer to ammend out or delete the appraisal contingency and pay the price difference in cash if it doesn't appraise.

In all honesty, I'm surprised they haven't caught on sooner and it will be interesting to see how quickly the rest jump on the band wagon and level the playing for all.

I'd love to hear if any of you have had any experience with this yet!

It is too early to say that the trend in real estate is up. Since March, 2009 it has been basically sideways. The October uptick may suggest that despite the local and national economic woes real estate may do its own thing.

The September, 2009 down tick may have been a hic-cup in the overall trend but it does suggest that one be cautious before reading anything into the market. It may have been a warning.

Even with the warning one would expect that with high unemployment; lack of new job creation; new taxes on the horizon both Federal and State; the increase in State tax as a loan for the next several months; lack of consumer confidence...all of these singularly and collectively will temper the real estate uptrend.

BUT as of now it looks like the market wants to get LEGS!

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