Buyer / Seller & Links
REAL DEAL PROPERTIES
Serving Temecula and Murrieta Valley
TERE RICE REALTOR*
Short Sale Specialist
Here's How I Will Help You Sell Your Home.
Selling your home can be a complex process. As a seasoned listing agent, I will help you with the entire home selling process. As your listing agent, I will help you get the best price for your home and help sell it in the fastest possible time frame.
Selling a home in any area means a comprehensive plan must be in place. If you select me as your listing agent, I will:
•
Provide you with a free home valuation to help determine your home's worth.
Provide you with a free home valuation to help determine your home's worth.•Review comps in the area to show you what is happening in your market area.
Review comps in the area to show you what is happening in your market area.•Negotiate on your behalf to receive the most money for your property and home.
Negotiate on your behalf to receive the most money for your property and home.•Network with other real estate professionals in your area as well as throughout other relevant areas to find the perfect buyer for your home.
Network with other real estate professionals in your area as well as throughout other relevant areas to find the perfect buyer for your home.•Arrange showings of your home that work in conjunction with your schedule.
Arrange showings of your home that work in conjunction with your schedule.•Advise you how to best prepare your property for potential buyers to view.
Advise you how to best prepare your property for potential buyers to view.•Engage in a comprehensive advertising campaign to give your home the ideal amount of exposure.
Engage in a comprehensive advertising campaign to give your home the ideal amount of exposure. •Utilize technology including my personal web site to showcase your property to other real estate agents along with potential home buyers.
Utilize technology including my personal web site to showcase your property to other real estate agents along with potential home buyers.•Work with you through the complex paperwork and legal issues that can impact the sale of your home.
Work with you through the complex paperwork and legal issues that can impact the sale of your home.•Represent you in a manner that is both professional and thorough
Represent you in a manner that is both professional and thorough•Tailor the sale of your home to the area of your property and to each of its unique features.
Tailor the sale of your home to the area of your property and to each of its unique features.Moving Tips:
Decide whether you want to use a professional mover or go with a rental
service and move yourself.
Make sure all your furniture will fit in your new home
You may want to rent a disposal unit to discard clutter and make the
move easier
Develop a list of all those who need to know your new address and phone
number
DMV - Bank - Credit Cards - Friends - Family
Links:
10 questions buyers should ask when deciding to purchase a condominium:
1. What is the monthly condominium fee and what does it pay for? The monthly condominium fee can range quite dramatically from condominium to condominium. The fee is a by-product of the number of units, the annual expenses to maintain the common area, whether the condo is professionally managed or self-managed, the age and condition of the project, and other variables such as litigation. For budgeting and financing you need to know the monthly fee and exactly what you are getting for it.
2. What are the condominium rules & regulations? Condominium rules can prohibit pets, your ability to rent out the unit, and perform renovations. Make sure you carefully review the rules and regulations before buying. Needless to say, the buyer's attorney should review and approval all condominium documents, including the master deed, declaration of trust/by-laws, covenants, unit deed and floor plans to ensure compliance with state condominium laws as well as Fannie Mae and FHA guidelines, as necessary.
3. How much money is in the capital reserve account and how much is funded annually? The capital reserve fund is like an insurance policy for the inevitable capital repairs every building requires. As a general rule, the fund should contain at least 10% of the annual revenue budget, and in the case of older projects, even more. If the capital reserve account is poorly funded, there is a higher risk of a special assessment. Get a copy of the last 2 years budget, the current reserve account funding level and any capital reserve study.
4. Are there any contemplated or pending special assessments? Special assessments are one time fees for capital improvements payable by every unit owner. Some special assessments can run in the thousands, others like the Boston Harbor Towers $75 Million renovation project, in the millions. You need to be aware if you are buying a special assessment along with your unit. It's a good idea to ask for the last 2 years of condominium meeting minutes to check what's been going on with the condomininium.
5. Is there a professional management company or is the association self-managed? A professional management company, while an added cost, can add great value to a condominium with well run governance and management of common areas.
6. Is the condominium involved in any pending legal actions? Legal disputes between owners, with developers or with the association can signal trouble and a poorly run organization. Legal action equals attorneys’ fees which are payable out of the condominium budget and could result in a special assessment. In most states, you can run a search of the condominium association in the court database to check if they've been involved in recent lawsuits.
7. How many units are owner occupied? A large percentage of renters can create unwanted noise and neighbor issues. It can also raise re-sale and financing issues with the new Fannie Mae and FHA condominium regulations which limit owner-occupancy rates. If your buyer is using conventional financing, check if it is a Fannie Mae approved condo. If FHA financing, check if it's an FHA approved condo.
8. What is the condominium fee delinquency rate? Again, a signal of financial trouble, and Fannie Mae and FHA want to see the rate at 15% or less.
9. Do unit owners have exclusive easements or right to use certain common areas such as porches, decks, storage spaces and parking spaces? Condominiums differ as to how they structure the “ownership” of certain amenities such as roof decks, porches, storage spaces and parking spaces. Sometimes, they are truly “deeded” with the unit, so the unit owner has sole responsibility for maintenance and repairs. Sometimes, they are common areas in which the unit owner has the exclusive right to use, but the maintenance and repair is left with the association. Review the Master Deed and Unit Deed on this one.
10. What Does The Master Insurance Policy Cover? The condominium should have up to $1M or more in coverage under their master condominium policy. For buyer's own protection, they should always buy an individual HO-6 policy covering the interior and contents of the unit, because the master policy and condo by-laws may not cover all damage to their personal possessions and interior damage in case of a roof leak, water pipe burst or other problem arising from a common area element. Ask for a copy of the master insurance policy and don't forget to check the fine print of the by-laws. Sometimes, there's language that would hurt a unit owner in case of a common area casualty. Condominiums over 20 units should also have fidelity insurance to protect against embezzlement.
What Additional Information Should I know?
10 Strategic Get-Into-Escrow - Tips
1. YOUR LOAN—BE PREPARED. Clearly identify your loan amount, loan program, and source of any gift funds upfront. Switching programs midstream can cost you time and might result in the loss of an offer. You’ll need a pre-approval from a direct lender, and one who is available to write new pre-approvals as required (on weekends, too). Once you’ve found the lender you want to work with, stick with them. Loyalty is mutually beneficial. Be prepared to write an earnest money check for 1% of the purchase price –or more. You may also be required to put this money into escrow upon seller acceptance—even before the short sale is approved by the bank. Even if you’re paying cash, plan on showing proof of funds.
2. YOUR LOAN—STAY PREPARED. Keep all your paperwork close at hand and updated, including your FICO scores and proof of funds to close (down payment and closing costs). Scan it and have it ready, so if the seller requires you to pre-qualify with their lender too, you will have everything ready. They may also ask you for DU approval (desktop underwriting).Don't buy anything that will affect your credit score, especially big ticket items like furniture or a car. Your credit score may be rechecked up until the day of closing and a new purchase may affect your ability to get a loan.
3. YOUR SEARCH—BE $$$ REALISTIC. Have your REALTOR® pull the solds for the past 3 months in your desired neighborhood and pay particular attention to the past 30 days. If prices are on the rise, make sure this is still a realistic area for you. Keep in mind that most people are looking for the same thing—the nicest house in the best neighborhood for the lowest price. You’ve got competition!
4. YOUR SEARCH—TARGET IT. Zero in on just a few favorite neighborhoods. This is not the market to be looking all over the entire county. If prices are rising in your first choice community, switch quickly. Have a backup area in mind from the beginning.
5. YOUR SEARCH—REALLY KNOW WHAT YOU WANT. Sit down with all decision makers involved and have a heart-to-heart about which amenities and features you really need and want, and which you can live without. Don’t let your emotions get in the way. Be logical when you make your wish list; because as soon as you start looking at homes, your emotions will kick into high gear.
6. YOUR REALTOR®-- PUT THEM TO WORK. Full time professional REALTORS® love what they do, and will be your greatest asset in this turbulent market. Their connections, perseverance, hard work and loyalty will get you the results you want. Be prepared to sign a Buyer Broker Agreement, which spells out the specific duties of both parties. if you’re not willing to make a commitment, the best agents won’t take time away from their loyal clients to help you.
7. THINK OUTSIDE THE BOX. Do you really have to have 2 full baths? There’s less competition for homes with 1 bath, and you could add another one later, or get a rehab loan upfront. Or how about a 2-on-1 instead of a single family home? Extra space or rental income can be a great asset.
8. LOOK AT THE CONTINGENT/PENDING LISTINGS. Another reason for having a good REALTOR® at your side. A very high percentage of escrows do not close with the original buyer, so it pays to track these homes and put in a competitive backup offer . In San Diego we now have a “contingent” status, where a short sale seller has accepted the offer but the bank has not yet approved it. Many of these first-position buyers are putting in offers on several homes at once, so look for homes which have been in contingent/pending for at least 1 month or more. Chances are that many short sale listings will need a new buyer, and when they do, they will need one quickly.
9. LOOK FOR HOMES NOT ON THE MARKET YET. Your REALTOR® can help you here, too, by checking the recent NOD (notice of default) filings in your targeted neighborhoods. Another possibility—homes which are going to auction within the next few weeks. Many of these would have made great short sales but the seller stayed in denial too long, or perhaps didn’t’ get the loan mod they were seeking. If your agent can get a short sale listing from the seller, and you write a strong offer and present it to the bank, you have a shot at getting the house, and helping the seller salvage their credit.
10. PUT IN OFFERS ON BOTH SHORT SALES AND REOs (and regular sales). You never know which will pop first and it’s best to cover all your bases. The advantage with regular and REO sales is simple—you’re dealing with the owner (private seller or bank). The decision can be made relatively quickly, so you can get into escrow quickly. However, everyone else knows this too so the competition is fierce, with dozens of offers on almost every decent home. Short sales can take a long time and there’s a good chance the approval won’t come before your deadline. The good news is you still can get some tax benefits from selected home purchase related fees. If it’s the house you really want, in the long run you’ll be doing well.
If the First Time Homebuyers Tax Credit is your main goal, make sure you know all the basics, plus the IRS rules. http://www.irs.gov/newsroom/article/0,,id=204671,00.html.
Happy house-hunting to you!
The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.
Applying for the 2010 New Home/First-Time Buyer tax credits: Applications must be faxed after escrow closes. The new application will be available by May 1, 2010. We will deny the application if the 2009 form is used or if we receive the 2010 application before May 1, 2010.
Check this page often. We will add updates as they become available.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.
We will allocate the tax credits on a first-come, first-served basis.
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
Taxpayers will not be eligible for either tax credit if any of the following apply:
•The taxpayer was allowed a 2009 New Home Credit.
The taxpayer was allowed a 2009 New Home Credit.•The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)•The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.•The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:
•Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."•Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.•Be eligible for the California property tax homeowner’s exemption.
Be eligible for the California property tax homeowner’s exemption.•Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.Tax credit allocation:
•A Certificate of Allocation will not be issued if:
A Certificate of Allocation will not be issued if: oThe seller does not certify the home has never been occupied.
The seller does not certify the home has never been occupied.oWe do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.oWe receive the application or reservation request after the total tax credits available have been allocated.
We receive the application or reservation request after the total tax credits available have been allocated.•FTB's determination may not be protested or appealed.
FTB's determination may not be protested or appealed.First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
•Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."•Be eligible for the California property tax homeowner’s exemption.
Be eligible for the California property tax homeowner’s exemption.•Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.
Tax credit allocation:
•A Certificate of Allocation will not be issued if:
A Certificate of Allocation will not be issued if: oWe do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.oWe receive the application after the total tax credits available have been allocated.
We receive the application after the total tax credits available have been allocated.•FTB's determination may not be protested or appealed.
FTB's determination may not be protested or appealed.Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.
Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. To reserve a tax credit, the taxpayer and seller need to complete, sign, and fax to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. Taxpayers who reserve a tax credit still need to fax an application and a copy of the settlement statement within 2 weeks after the close of escrow. Taxpayers may not reserve a tax credit if the contract was entered into before May 1, 2010. We will post the reservation form and details about the process by May 1, 2010.
If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.
Claiming the tax credit:
•The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.•The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).
The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).•Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.•If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.•The tax credit may not reduce regular tax below TMT.
The tax credit may not reduce regular tax below TMT. •The tax credit is not refundable.
The tax credit is not refundable.•Any disallowance of the tax credit may not be protested or appealed.
Any disallowance of the tax credit may not be protested or appealed.