Sandy Vickrey's Winters, CA Blog

Below is a quote from an article in the San Francisco Chronicle about the new home buyers tax credit.  It seems that the verdict is still out as to whether or not this applies to current escrows are only those who go into contract May 1, 2010 or later.  I tried several times yesterday to call the California Association of Realtors attorneys for clarification on this and the lines were always busy.  Then I resolved myself to call our local Assocation of Realtors and was just referred to another website with no answer.  As you can see from the link below it looks like everyone is waiting word from the Franchise Tax Board.  Wouldn’t you think they could write a bill  specifically states this such and the current federal rule states.  Too bad there is so much confusion.  Looks like we are “still waiting”.  I need to know so I can advise my clients as some of them might be better off closing in May instead of April.   

“First come-first served eligible taxpayers must close escrow between May 1, 2010 and Dec. 31, 2010, or after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.

Watch for clarifications from the states Franchise Tax Board“

The following is an article that came to me via First American Title.  Always want to give credit where credit is due.  The one question everyone has is ” does this apply only to those people who go into contract after the Federal Tax Credit goes away on April 30, 2010?  In other words, non “double dipping”.  I need to call the CAR attorneys on this one as a lot of people are confused.  Anyway you look at it, it  is a good thing but the time constraint here is “when the money runs out”, not the dates.  Very important to remember, ie act quickly. 

Gov. Arnold Schwarzenegger signed a new bill this week that would extend the $10,000 homebuyer tax credit to Californians. The state legislature on March 22 passed assembly bill (AB) 183, which gives the Franchise Tax Board authority to extend $200m in tax credits to homebuyers in the Golden State. Buyers of new, unoccupied homes are allocated $100m in credits, and first-time homebuyers of existing homes get another $100m. The credit is extended from May 1, 2010 to Dec. 31, 2010. The credit is available to buyers on a first-come, first-serve basis, and it’s applied in equal amounts over a three-year period. According to the governor’s office, the initial $100m tax credit approved in February 2009 lasted just four months

A lot of REO (foreclosure) agents told me that we would see a “flood” of new listings come on the market the first part of this year.   Well, we are almost done with the first quarter and April 30, 2010 is fast approaching and there arent’ any listings.  Why is that date important?  Well, in order to get the first time home buyer tax credit of $8000 you have to be in contract by April 30 and then close by June 30, 2010.  If there aren’t any listings then people can’t buy and therefore, can’t get the tax credit.    Since Bank of America and Wells Fargo Bank control/own the majority of the  foreclosed homes you gotta wonder why they aren’t putting them on the market.    Is there some conspiracy going on here?  No listings, no sales, no tax credit, saves the government a lot of money?  I wish I knew but food for thought for sure.  So the next BIG question is, will the government extend the credit once again?  I sure hope so.

Well, we finally have a new listing to show our clients!  There a new listing at 313 Creekside that has a granny flat over the garage.  The City ordinance states that the owner has to live in one or the other, so an investor can’t buy a “duplex”.    The home is listed at $259,900 and 3 bedrooms and 2 baths.  This is a popular neighborhood due to the fact that there is access to the trail that runs along Putah Creek and is close to the downtown area.  Come and take a look.

Well, let’s start with the knee.  We have just completed week one.  John still hurts and can’t understand why he has to do his exercises.  Told him if he  doesn’t, he won’t get his mobility back.  Bitch. 

On the real estate front, Dave and I finally sold 309 Edwards Street!  We put this puppy pending last August.   Think this is my longest career escrow!  Sure hope so.  The property was a 3/2 manufactured home.  The key word here is "manufactured".  That kind of home has its own set of lending rules.  We all learned more that we ever want to know about manufactured home on this one.  I am so happy for both the Buyer and the Sellers to finally get this done.  I want to thank them both for hanging in there on this one!  Did I mention the sales price was $114k?  Simply amazing as Huell Houser would say.

Finally, we have a new listing in the office!  Yeah!  It is a nice 4/2 single story in the new subdivision across from St. Anthony’s center.  I can hardly wait to show it.  I really like this floor plan.  List price is $274+-.  Shouldn’t last long.  

I have a wonderful new listing out in the country.  Positas Road is on the West side of town just past Pleasants Valley Road.    It is up on a hill and has wonderful views of the foothills.  The house has 3 bedrooms and 2 baths with a large two car garage.  This home has lots possibilities.  Call me  today and make an appointment to see it before it is gone.

Well, wouldn’t you know it?!  Just when everyone gets really busy with their Christmas preparations the banks decide to release a bunch of new REO’s.  Yes, there have been 4 new listings in Winters since the beginning of the month.  The interesting thing is that they are all on the lower end of the price range.  One just hit the market this weekend for around$124k.  there are two more around $135 and one just under $150..  These are all something to look at and consider.    Wonder what will appear around the first of the new year?  Guess we will wait and see.

Well, this listing has been out there a little over a week and 4 days of that was the Thanksgiving vacation!   I got an offer on Monday and tonight it went pending.  I am very happy for everyone.  This is a great house with lots of potential for updating.  Plus it is in a nice quite neighborhood.

I just listed 114 Riverview Ct.   I love this floorplan.    It is the 2 story model and there are several homes of this model in this neighborhood.  When my son, Chad was in high school his friends lived in this model.  Upstairs there is a large loft and 2 large bedrooms  and a full bathroom.  Plus there is a large storage area.  As my owner says, behind this door is Christmas!  Chad and his buds used to hang up there by the hour playing their music, video games and who knows what else and I am sure I don’t want to know.   Downstairs is a large living room, family room and one more bedroom and the master bedroom.  The lot is over 9000 sq ft so it is a definite must see!    Give me or your favorite realtor a call for a showing.

I am getting so frustrated as over the past 4 to 6 weeks we have a seen a major negative shift in appraisals.  This isn’t just happening in Winters, but all over our area from the people I have talked to.    We have a buyer and seller agree to a price and the appraisal may come in $30k to $50 less than the agreed price.  When you look at the appraisals the appraiser has made an adjustment for a declining market rather than a neutral or appreciating market which is what we have seen here since at least February.    They say they are seeing this in the sold sales but if a house sales for more than it was listed for then how is that a declining market?  I have talked to other appraisers who agree with me.   The unfortunate thing is that when an appraisal comes in low, then it effects the  entire market for 3 to 6 months as other appraisers will use that sold as a comparable.  So, when an appraisal comes in $50k less than it should then everyone in town has just lost $50k of equity in their home.  It just doesn’t seem right that one person on the planet ,who hasn’t been in all the homes they are using for comps has that kind of power.   Times are hard enough as it is without someone being able to strip  us of what little equity we may have left.   Something needs to be done about this very soon or we are going to be in a whole lot more trouble than we are right now.   Any suggestions?