Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers California’s median home price up 21 percent in April from a year ago California’s median home price—the point at which half of homes sold for more and half for less—rose 21 percent in April compared with a year earlier, but sales of existing, single-family homes declined 8.1 percent, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) April sales and price report
For more information, you can visit my Web site or feel free to give me a call. Tammy Vertrees, Paradise California Realtor 530-413-8383 Direct 530-872-5428 Office www.TammyVertrees.com Follow me on TWITTER I specialize in representing sellers and buyers of residential real estate in Paradise, Magalia, Chico, Oroville, Gridley, Biggs, Durham and the surrounding areas. I provide my clients with a strong level of comfort, powerful negotiation skills and use of the latest technologies. Visit Tammy Vertrees on the web at www.TammyVertrees.com for real estate information and to view all available Butte County homes for sale. © Tammy Vertrees 2010. All Rights Reserved. Weekly Market Report 05/27/2010
Click picture for larger view  Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers Mortgage Rates at New Lows, Thanks to Europe's Debt Crisis On Monday May 24, 2010, 12:44 pm EDT Here's some good news for the struggling US housing market: Thanks to the European debt crisis, mortgage rates are at historic lows. The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That's the lowest rate for the 30 years since Bankrate started keeping track 25 years ago. Even jumbo loan rates-loans for more than $417,000-have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year. "It's the best time in our generation to buy," says Mark Zandi, chief economist at Moody's. "It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn't pick a better time to buy or re-finance." Europe's debt crisis is behind the drop. Nervous investors are flocking to the security of US Treasurys, which pushes down their yield and influences a host of consumer interest rates-including those on mortgages. The decline is also good news for homeowners looking to refinance, particularly those who owe more on their mortgage than their house is worth. "There's a tremendous window on re-financing," says Greg McBride, chief economist at Bankrate.com. "That's particularly true for people who can take advantage of the government's Home Affordability Refinance Program (HARP)-which allows home owners to refinance into low mortgage interest rates even if they're property value has gone down." HARP, which was due to end at the end of this June, now runs through June of 2011. "Think of the benefits if you buy or refinance now," says McBride. "Locking in now at the lower rates means more more bang for the buck and more breathing room for homeowners when it comes to payments." But the decline in rates probably won't last long, analysts say. So homeowners need to move fast. "I think they won't last much longer than a month or two at the best," says Lawrence Yun, chief economist at the National Association of Realtors. "I can see them going up to 5.5 percent by the end of June if not sooner." The reasons? Yun says the worries over Europe will be fading soon and investors will be looking at other assets besides US Treasurys. And there's the US deficit, which will push up Treasury yields. _____________________________________ Calculators and Advice from Bankrate.com: _____________________________________ "The US is fortunate now that there's no pressure on interest rates," Yun goes on to say. "But going forward, higher rates will be needed for financing the debt." Zandi agrees. "Yes, I can't see these rates being this low in three to four weeks," Zandi says. "Investor's will settle down and this current crisis (Europe) will pass and the focus will be back on US debt. It's really a now or never type of proposition, when it comes to getting these types of historic rates." _______________________________________________________ For more information, you can visit my Web site or feel free to give me a call. Tammy Vertrees, Paradise California Realtor 530-413-8383 Direct 530-872-5428 Office www.TammyVertrees.com Follow me on TWITTER I specialize in representing sellers and buyers of residential real estate in Paradise, Magalia, Chico, Oroville, Gridley, Biggs, Durham and the surrounding areas. I provide my clients with a strong level of comfort, powerful negotiation skills and use of the latest technologies. Visit Tammy Vertrees on the web at www.TammyVertrees.com for real estate information and to view all available Butte County homes for sale. © Tammy Vertrees 2010. All Rights Reserved. What Is An Earnest Money Deposit? 05/21/2010
 What Is An Earnest Money Deposit? An earnest money deposit, also known as a good faith deposit, is a specific dollar amount that a potential buyer pays to the seller in an effort to display their serious interest in a property. It's important to note that an earnest money deposit is not the same as a down payment. The Purpose Of An Earnest Money Deposit An earnest money deposit is used to secure a purchase contract, which means the buyer doesn't have to worry about the property being sold out from underneath them. Without an agreement, the seller would be free to sell the home at anytime. An earnest money deposit, however, secures the availability of the home as the potential buyer obtains an inspection, appraisal and financing for the purchase. How Much Good Faith Is Enough So, just how much of an earnest money deposit is required? Truthfully, it depends on a number of factors, including the home's purchase price, your location and the standard as set by other sellers. In most cases, the earnest money deposit is negotiable and the seller will be happy in knowing that the potential buyer is serious enough to offer their money in good faith. How An Earnest Money Deposit Is Used If the transaction is successful and the buyer follows through with the purchase, an earnest money deposit is most commonly refunded to the buyer or applied to closing costs. If the buyer defaults or is unable to obtain financing, the seller often has the discretion to retain the earnest money deposit as damages or as otherwise described in the purchase agreement. Using Your Dollars And Sense When it comes to an earnest money deposit, it's essential that buyers know who should receive the money and how to handle the payment. In most cases, the deposit should be made payable and presented to a licensed real estate broker, an attorney or escrow company. Your REALTOR® can assist in getting your earnest money deposit into the right hands. It's important to obtain a receipt, which should clearly outline the purpose of the deposit. The funds will be handled in accordance with the purchase agreement and/or as agreed upon by both the buyer and seller. Before handing over a good faith deposit, make sure that you have faith in the person accepting your money. Potential buyers should not give an earnest money deposit directly to the seller, nor should they give it to anyone who claims to be with a brokerage firm unless their credentials are verified. Weekly Market Report for Paradise and Magalia California Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers For more information, you can visit my Web site or feel free to give me a call. Tammy Vertrees, Paradise California Realtor   When Your Paradise Home Selling Price is too High, Beware! What Happens Behind the Scenes If you start out with too high a price on your Paradise home, you may have just added to your stress level -- and selling a home is stressful enough. There will be a lot of "behind the scenes" action taking place that you don’t know about. Contrary to popular opinion, the listing agent does not usually attempt to sell your home directly to a homebuyer. That would be inefficient. Paradise listing agents market and promote your home to the hordes of other local agents who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients. If the price is right. If you and your agent have overpriced, fewer agents will preview your Paradise home. After all, they are Realtors, and it is their job to know local market conditions and home values. If your Paradise house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically. Dropping Your Price...Too Late If you start out with a high sales price, then drop it later -- your Paradise house is "old news." You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell. Even if you do successfully sell at an above market price to an uninformed buyer, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable Paradise sales for the last six months and current market conditions do not support your sales price, the house won’t appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your Paradise house could go "back on the market." Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your Paradise home in the beginning, you could actually end up settling for a lower price than you would have normally received. California homebuyer tax credit going, going 05/13/2010
California homebuyer tax credit going, going By Eve Mitchell Oakland TribunePosted: 05/05/2010 04:15:18 PM PDTUpdated: 05/07/2010 05:48:43 AM PDT The popular state homebuyer tax credit returned Saturday after running out of money last year in just four months. But if you're interested in obtaining the tax break to help reduce the cost of buying a home, you better act fast. Funding for the credit could be used up within three weeks, said Michael Tessaro, a Realtor with East Bay brokerage J. Rockcliff Realtors and a director with the California Association of Realtors. Association economists are projecting that funding set aside for the tax credit will be used up quickly, thanks to an expected flood of delayed closings by homeowners who hope to qualify for both the state and federal credits. "(The state credit) is expected to run out of money in two to three weeks "... based on the number of closings in the pipeline. It's going to be done and over with very quickly," Tessaro said. The federal homebuying credits, which provide up to $8,000 for first-time buyers and up to $6,500 for qualified repeat buyers, have a June 30 deadline for closing escrow in cases in which buyers signed a binding purchase contract by April 30. The state credit, worth up to $10,000 over a three-year period, became effective May 1 and can be used by two groups of taxpayers: First-time and repeat buyers of new homes and first-time buyers of existing homes. To claim the credit, first-time buyers of existing homes have until Dec. 31 to close escrow, or until program funding runs out. Buyers of new homes with a purchase contract signed from May 1 to Dec. 31 can reserve a credit, but then must have escrow closed by Aug. 1, 2011, to obtain the credit.The overlap window in May and June to take advantage of both the state and federal tax credit prompted many buyers to delay closing escrow until May so they also could apply for the state credit, Tessaro said. Three clients decided to delay closing escrow on homes until this week so they could get both credits, said Faramarz Moeen-Ziai, a mortgage banker with the San Ramon-based Bank of Commerce Mortgage. "We definitely had that happen last week," he said. "The state tax credit is only available for closing after May 1." The state credit was made possible by legislation signed in March by Gov. Arnold Schwarzenegger. It provides $100 million in funding for all buyers of new homes and $100 million in funding for first-time buyers. The state tax credit program is being handled by the state Franchise Tax Board. The $100 million in funding for first-time buyers is expected to be used up quickly, Franchise Tax Board spokeswoman Brenda Voet wrote in an e-mail. "We will provide estimates, based on sampling, of the number of first-time-buyer applications and the related credit amounts that we have received beginning May 6, 2010. We are currently working on these estimates," she wrote. "The original revenue estimate for the First-Time Buyer Credit is that it would only last six to eight weeks" but that the funding could be used up more quickly than that. The state credit has its limitations, Moeen-Ziai said. That's because the maximum $10,000 credit is spread out over three years, or $3,333 a year. To obtain a $3,333 credit, a taxpayer would have to owe at least $3,333 in state taxes. A taxpayer who paid only $1,500 in taxes would receive only a $1,500 credit that year. "The bottom line is that most people don't have $3,333 in state taxes," he said. Contact Eve Mitchell at 925-952-2690. HIGHLIGHTS Tax credits are limited to either 5 percent of the purchase price or $10,000, whichever is less. The home can be a single-family house, condominium, townhouse, houseboat, manufactured home, or mobile home. The home must be a primary residence and not an investment property. Taxpayers must receive a Certificate of Allocation from the state Franchise Tax Board to claim the credit. If the available tax credit exceeds the amount of taxes owed, the unused tax credit may not be carried over to the following year. For details, go to www.ftb.ca.gov or call 888-792-4900 (press 1). Weekly Market Report 05/12/2010
Click photo for larger view  ABOUT THE TOWN OF PARADISE 05/11/2010
 ABOUT THE TOWN OF PARADISE The Town of Paradise, incorporated in 1979, is a beautiful community with a population of nearly 27,000 and another 20,000 people living in the adjacent unincorporated area of Magalia. It is located 97 miles North of Sacramento and 12 miles Northeast of Chico and situated in the Western foothills of the Sierra Nevada Mountains. The community forms a sanctuary for wild game since there is no hunting allowed within the perimeter. Paradise offers its residents a rare combination of advantages. With its great natural beauty and charm, it offers excellent home sites, a wide choice of recreational pursuits, cultural activities and facilities for shopping and personal services. Recreational pursuits are plentiful as this beautiful countryside offers activities for the hiker, fisherman, hunter, horseman and golfer. Lake Oroville is within ten minutes of Paradise for water sports, house boating and fishing. Paradise offers a delightful climate which is superior to that of much of the rest of Northern California. We boast four distinct seasons. Our foothill location and prevailing wind direction eliminate smog conditions completely. Its 18 square miles and has an altitude of 1200 to 2400 feet. This altitude keeps it cooler in the Summer and with less Winter fog than is found on the valley floor below. Our Winters offer an occasional light and beautiful snowfall which enhances Paradise's natural beauty. Paradise has a progressive and excellent school system. We are in close proximity to California State University Chico and Butte Community College. Stop by and say "hi" on your next visit! Seller Home Pricing 05/10/2010
Seller Home Pricing
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