Napa Solano Yolo real estate blog

Last year, first-time homebuyers received a federal tax credit up to $7,500 that would have to be paid back in 15 years or upon sale.

This year, the amount went up to $8000, payable in 3 increments and as long as you own your home for at least 3 years it will be a grant and will not have to be paid back.

California has issued a $10,000 tax credit to all new home buyers, however there is a limited amount of funds for this, when it runs out it is over. (March 2009)

I haven't seen the local newspapers publish what we are currently experiencing in the real estate market: (March 2009)

• Homes in good livable condition and priced under $417,000 are currently getting multiple offers in most areas. (Conventional loan max rates) (March 2009)
• Highest offer price is not always the best offer.. Cash is not ALWAYS king. A fair offer (within 5% of close-by recent true comps) with strong buyers putting down a 20% down payment, non-contingent upon the sale of a home and ready to close in 30 days are sometimes able to walk away with the prize. (March 2009)
•  Current inventory is getting low or non-existent in some price ranges or some types of homes such as those with a pool or 4 bedrooms, 3 car garages, or those homes priced under $200,000. (March 17, 2009)
• Those buyers working with a buyer agent who knows what they are looking for can still get what they want by being pre-approved with a local lender and being ready to act when a suitable property is located and making reasonable offers.
• Banks are compiling lists of non-performing buyers (or those making unreasonable offers not based upon data) putting multiple offers on multiple properties when they only qualify to buy one house, this practice is illegal and you could be held liable. (March 2009)
• # of short sale listings are increasing lately due to some local job losses, illnesses, sellers' inability to refinance or modify their loans.
• Good news is that the banks are really assembling good strong short sale departments that have developed a better, shorter process for approving a short sale offer. Make sure your offer price and conditions are based upon recent true comparables for that home.
• Some banks such as Wachovia are promising short sale approvals in as little as 30 days in today's market. (March 2009)
• If you need some money for closing costs to be paid by the seller, make sure to accomodate for that somehow in your offer price in order to get your offer some serious consideration.
• Bank owned homes are coming onto the market in much better condition than last year. Some have new carpet, new paint and some even have all the appliances in place!
• If the bank won't consider making any energy savings related updates, ask your lender about an energy efficient FHA or HUD mortgage, new windows and HVAC equipment can be installed upon the close of escrow paid for by your Energy Efficient Mortgage!

Northern Solano county statistics are published for January 2009, showing healthy increases in the number of sales, fewer average days on the market and the average sales price is 30% lower than a year ago.

Each area of each northern Solano county city has a significant difference in their sales figures, some areas have been harder hit than others for home values.

Mortgage interest rates are running stable at or near 5% all week long. This is because the government has assured a low cost for credit through a series of bank stimulus programs.

When the interest rate goes down from 6% to 5%, you save almost $150 per month on a $250,000  30 year conventional loan.

If you buy a new home in California before Dec 1, 2009 you will get a $10,000 tax credit. The amount of money for this credit is limited and when it runs out, this offer will be rescinded, so hurry.

Call your favorite Realtor (707-673-7500) to represent you they must be accompany you on your first visit to the model home community.

You don't want to be unrepresented at the new home community, so call and make an appointment with me now for your personal tour of all the new homes. We will tour all new home communities in the area that interest you in Solano, Napa, Sacramento or Yolo county.