Cindy Lamb ~ Homes under $1 Million in OC

My goodness, it's been warm lately! Well, that's July for you. As Disneyland celebrated its 54th birthday last week, we were enjoying temps in the 90's.

But that's not all that seems to be heating up. While the market's certainly nowhere near as "hot" as it was in the peak of the bubble, word on the street is things are starting to warm up a bit for the lower price ranges (homes within FHA loan limits). Investors are beginning to jump in and take advantage of some of the great deals to be found these days.

The $8000 tax credit is only until November 30th (NOT the end of the year as some believe), so if you're sitting on the fence, it's definitely time to take action!

Wow, what a roller coaster ride the last week has been! The Dow has been all over the place (okay, mostly down) the last few days, banks have folded, and many stockholders have been watching their depleting retirements drain away.

Okay, enough bad news, what's the good news?

These are the markets where fortunes are made, my friends. I believe it was Andrew Carnegie who said (in response to a query as to why he was so rich), "I buy my straw hats in the winter." Well, welcome to the blizzard. I find this quote particularly relevant since winter is also historically the lowest point of buyer activity in the real estate sales cycle.

But what does all this mean for buyers?

Fewer other buyers on the market + more sellers not getting their homes sold = more bargaining power for anyone who IS buying!

Now, of course the major challenge at present is financing, as the credit markets have seized up. But don't eliminate yourself before getting in the game. TALK to the banks, see if you can get pre-approved (pre-APPROVED, not just pre-qualified). Once you're pre-approved, it's time to go hunting for a deal. Remember you don't have to take the first thing that comes along. Be willing to walk away from deals that aren't realistic. But at the same time, educate yourself on the overall market for what you're buying. The truly great deals still disappear quickly, so you'll want to be able to spot a good deal when you see one.

From an investment standpoint, with no known end in sight to the current market conditions, you'll obviously want to pursue properties which can cash flow for you right away. Remember that there is more than one way to make money from a property. Ideally, if you are making money by renting it out for more than your mortgage plus expenses, that's great. And if you put enough down on a property, you can make this happen. But another way that your property helps make you money is through savings on your taxes. Always run this one by your accountant, but do not ignore the financial benefits of acquiring a significant writeoff. Saving money that would otherwise go to the tax man is another way to increase the overall financial picture.

Just remember to pencil it all out. Not every property is going to cash flow immediately, but the deals ARE out there, if you're willing to do your homework and walk away from the deals that don't pencil out, you can build your fortune in a market like this.

$142,500

What would you suppose that money would get you in Orange County today?

....

....If you guessed nothing, you're in good company, but you're wrong. Trust me, I'm as floored as you.

Would you guess a 2-bedroom condo a mile from Disneyland?

I was conducting a search for a first-time buyer client of mine, hoping to find her a unit in the "under-$200k" range, and was shocked at the results. Even after eliminating all the short pays there were still 17 2-bedroom (or more!) units available in Anaheim.

This is particularly exciting in Anaheim as they have some excellent first-time buyer programs for people who work or already live in the area. Buying can be quite literally cheaper than renting right now.

If you bought your home in the last couple years, there's a better-than-fair chance that your home is now worth less than what you paid for it. So why are you still paying taxes based on what you bought it for?

Section 51 of the California Revenue and Taxation Code states that the assessed value of any real property shall not exceed its market value on the January 1st lien date. So, if the market value of your property on January 1, 2008, was less than the assessed value as it appeared on your last annual assessment roll, you can make a request that they review your assessment. What this means is, they may reduce the assessed value of your home, which will result in a reduction in the property taxes you owe this year. No, the reduction is not retroactive, in that it will not result in a reduction of your taxes for 2007, but it will help you out going forward.

But here's the rub: the due date for these requests is APRIL 30TH. So you must get your request in ASAP. You will need to fill out the request form and have it delivered or postmarked by that date.

Here's where I can help. In order to fill out the form, you will need to provide Comparable Market Data Information (yes, it's a redundancy in terms, but that's our government for you!). What they mean is that you need to provide recent Sold comps for your property. This is recent sales in your area on homes similar to your own, to help provide an estimate of the current market value for the property. I can help you get this information. Call me today! (949) 468-8405 or email me at clamb@homesoc.com.

Here is the form you need to send to the Orange County assessor's office.
More info from the assessor's office.

Perfect house hunting weather. The sun is shining, it's a mild 70 degrees out, and all the hills within eyesight are lovely shades of spring green.

Good house hunting weather is also good open house weather! It's time to get out there and find the perfect home before everyone else does.

Gotta love spring in Southern California!