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Silver Lining in Orange County Real Estate Market!

by Ashlie DuCros
 

FIRST THE GOOD NEWS! ORANGE COUNTY HOME SUPPLY AT 11 MONTH LOW...

As of the end of March, the most recent numbers available, the county was left with 7.5 months worth of inventory. The term “market time,” defines the inventory line by how long it would take to sell all the homes listed at the current pace of sales. This is the lowest inventory in a year. But even more of a silver lining is the fact that a true down market, by definition, must have 15 months inventory according to the National Association of Realtors. Then why is our market so sluggish? There are several reasons. First of all, there is a lack of money. Lenders are running skittish and are hesitant to buy mortgage backed securities. Secondly, people are afraid. It is always nerve wracking to buy when everyone is selling, even though that is exactly when you should buy. People that buy their homes now, with the guarantee of low interest rates, will be the ones bragging in 10 years about what a great deal they got on their home all the while sitting on a pile of equity. The key reason for the improvement in inventory is of course sales. According to the OC Register the latest count for deals in escrow was 2,083, (March 25th), up 109% fromJanuary 19th’s wintertime low.

To take advantage of today's home prices, log onto www.HotOCbuys.com to find your home!

Call Ashlie DuCros for all your real estate questions at 714-743-9778, or email her at ashlie.ducros@mailpcr.com!

Interested in First Time Buyer's Seminar?

by Ashlie DuCros

I'm looking to put together first time buyer's seminar in Orange County, CA.  These are some of the topics that will be covered:

1) How to find your best deals! (Bank Owned, Short Sales, Foreclosure properties)

2) What is the best loan for first time buyers?

3) Can you still get 100% Financing?

4) How about first time buyer's assistant plan?

5) What is the actual process to buy a home?

6) What can you ask for when you put an offer?

7) Can you ask Sellers for cash back? help closing costs?

8) And much much more! 

Are there any topics that you would like for me to cover?  Please feel free to make your suggestions so that I can provide you the best possible information!

If you would be interested in this First Time buyer's seminar, please comment on this post, or email me your interest at ashlie.ducros@mailpcr.com  Thank you so much for your feedback and participation! 

Thank you!

Ashlie DuCros

 

Is the worst of the market behind us? To answer that question, in my opinion....YES!  Please continue to read as I attempt to give you reasoning for this opinion.
 
You will not hear this from the "media" for another six months. It will take that long for today's sales going into escrow to show up in Dataquicks reporting of closed transactions. Even then, it will be showing sales down over the previous year, but it will show a steady increase of sales month over month of the previous month. This simply means that beginning in January of 2008, sales have increased every single month. I believe this to be much more than just a seasonal surge that we usually experience every Spring. We are seeing evidence of a pent up demand of buyers that are now entering the market by prices not seen in many years. Orange County buyer's have sat on the sidelines for a year or so and now they are coming back into the market.
 
Keep reading......
 
Let me give you some specifics. Rich Cosner, President-Prudential California Realty, reports that a company Sales Manager tells us, "her agents are working with more buyers right now than they have had combined in the past two years." Think about that statement. This office is seeing more buyers in the past few months than in the past few years total! "An agent wrote 27 offers for 3 buyer clients in March and now all three are in escrow. Why 27 offers? Because the market is hot and with multiple offers everywhere, usually on foreclosed properties, she was competing with anywhere from 7 to 30 offers on the properties her clients selected. It is back to the market of a few years ago....with buyers having to lose two or three or more properties before they believe the agent.....that if they want the house, they have to offer competitively and have a strong agent on their side!"
 
When you see the prices at levels that bring out hoards of buyers making multiple offers...you have seen the end of the downward price spiral. There is no reason to believe house prices will go down further in the face of multiple offers at today’s pricing. Further, what you see as the asking price is NOT what you may pay! I have negotiated many strong offers for clients… well below asking!
 
All this means is now you have a stabling real estate environment in which to operate. You don't have to fear that the house you buy today will be worth far less in a few months. Short of some financial calamity on Wall Street making mortgage money unavailable, I believe that we are at the bottom of the pricing challenges. The federal government has already proved, with the last minute rescue of Bear Stearns, that is will not let anything happen to endanger the economy further. The government is working daily to solve the housing issues with increases in loan limits, help for builders, and help for people who are in or about to be in foreclosure. With this type of government involvement it just does not make any sense that prices will continue to decline.
 
I have been told that I need to get the message out to the people you know. All of the people I know...... do you know people sitting on the sidelines waiting to buy. Waiting for what? They continue to wait for prices to decline. I realize you may not believe me at first because the press is still telling you prices are going down. In six months when the press begins writing positive articles, an avalanche of buyers will descend on the market and that will be the beginning of price increases. Today you have lots of choices and good prices. In six months you will have fewer choices and more buyers to compete with for those choices.
 
I am not predicting here some large increase in sales prices in the near term. I am simply saying that the best deals to be had will be out there now and over the next six months. If you miss that window, you may pay more than you would have to pay today. With the incredible low mortgage rates today, why would you let this opportunity slip away?
**So login today at www.HotOCbuys.com to find your best deals now, before it's too late! Or, simply call Ashlie DuCros at 714-743-9778, or email her at ashlie.ducros@mailpcr.com to help you start building your real estate wealth!

Best Strategy to sell an Investment Property!

by Ashlie DuCros
How to reduce taxes when selling rental
1031 exchange is the only way to go
By Ilyce Glink, Friday, April 4, 2008.
Co-written by Samuel J. Tamkin
Inman News
Q: What are the best strategies to minimize the tax liability on a rental sale? We bought a single-family home and lived in it for a couple of years, and then rented it for the last six years. We'd like to sell it but are concerned about a hefty tax bill.
I own another home that we use as an office. Can I roll the gain from the first property to pay down the note on the office?
A: The rental property you used to use as a home is now considered an investment property by the IRS.
As an investment property, you can either pay the taxes owed upon sale of the property, or defer the payment of real estate taxes due upon the sale. If you choose to defer the taxes you owe, you'd utilize Section 1031 of the Internal Revenue Code. This section allows a rental property owner to sell the property and defer paying taxes upon the sale if the property owner sets up a tax-deferred exchange, also called a like-kind exchange or Starker Exchange.
Unfortunately, a like-kind exchange would require you to buy a replacement property for the home you are selling. It would not allow you to sell the property and use proceeds from the sale to pay down the debt on one of your other properties.
You could sell only your first property and buy a replacement property or replacement properties. That replacement property or properties must have a value equal to or greater than the property sold, and you would have to adhere to strict time limits in purchasing the replacement property.
Upon sale of the investment home, you would have to set up an exchange through a company that specializes in 1031 exchanges. All proceeds from the sale of the property would have to be held by that company.
You would then have 45 days from the date you closed on the sale to find and designate a replacement property, and you'd have to close on the purchase of that new property within 180 days of the date of the sale.
In some instances, the 180-day time limit may shrink. Be sure you choose a knowledgeable and reputable 1031 exchange company.
Q: My fiancé and I bought a home in 2004. Her name is not on the mortgage, but she is listed on the deed as part owner. We would like to have her taken off the deed. Is there a way to do this? I wouldn't think we need to refinance because she is not on the actual loan.
A: You are correct. You can probably take her off the title to the property by having her transfer her interest in the home to you.
She would have to execute a deed to transfer her ownership interest in the home to you. You can use a quitclaim deed or other deed form to accomplish this transfer.
In simple terms, a quitclaim deed transfers any interest a person may have in the property without making any representations as to whether that person owns the home. A warranty deed performs the same task but gives the buyer (or person receiving the title) a representation that the person signing the deed and conveying a property has an interest in that property to convey.
Most people use quitclaim deeds to transfer title between themselves. Sometimes, and for obscure title insurance purposes, it may be better to use a warranty deed.
But you need to keep a couple of things in mind when transferring title.
First, there is the cost. In some jurisdictions, municipal officials in their quest for additional revenue are taking a harder line on quitclaim deeds where the parties claim there was no consideration that changed hands between the parties. If a transfer tax is applied, it can make that transfer quite expensive.
Second, you should talk to your accountant to determine if there will be any tax consequences to the transfer. When you and she took title to the home, you each may have become equal owners to the home. That ownership should have had some value. Was her share of the home at the time of the purchase a gift from you to her? Now that she has ownership, is her transfer back to you a gift from her to you? Depending on the amounts involved, you may have reporting issues with the Internal Revenue Service.
Finally, while you did not say why you were unwinding the ownership, if you are breaking up, you're on the right track. But if you're getting married and for other reasons are taking her off the title to the home, make sure you have a will or other estate plan in place. You'll need to take care of your interest in the home should something happen to you and her interest in the home, if your plan would be to have her have the home if something should happen to you.
Please call me today if I can help you with an Investment purchase or sale!!

Loan Rates and How I can Help!

by Ashlie DuCros

Hello Everyone,

Please check out my Blog post "This Week's Loan Rates". As you can see from the rate sheet's we've had another week on the down side. Look at the 5/1 conforming arm, down a whopping 1.25% in rate in just a week! We're heading back in the right direction!

Did you hear about the new plan for the federal government to step in and
help the homeowners who are "under water" and refinance them into an FHA
loan. This is just another step to help homeowners and the real estate
market weather this storm.

This week's rates will be driven by the Non Farm Payrolls on Friday with a
few ups and downs as the market reacts to news from the financial industry
and from Washington on proposed regulatory changes and new "inventive" ways
to help homeowners. Stay tuned for any updates during the week.

Remember there are great tax savings with homeownership.
As we continue to head into such an incredible time for First Time Home
Buyers to get into the market it is my job to make sure you know how much
you'll benefit from owning a home.

I look forward to hearing from you soon and as always if there is anything I
can ever do to help you please do not hesitate to call me! If you'd like a customized Rent vs. Own worksheet to show you the benefits and cost analysis please contact me today!

Warmest Regards,

Ashlie DuCros

This Weeks Loan Rates!!

by Ashlie DuCros
 

CONFORMING RATES (up to $417,000)     THIS WEEKS RATES         

30 Year Fixed                                                               5.50%                       

30 Year Fixed Interest Only (I.O.)                             6.125%                                

15 Year Fixed                                                               4.875%                                

5/1 ARM                                                                     5.25%                                  

5/1 ARM I.O.                                                             5.25%                                  

CONFORMING JUMBO RATES (from $417,001 to the maximum allowable per county)

30 Year Fixed                                                               6.125%                                

15 Year Fixed                                                               6.00%                                  

5/1 ARM                                                                      7.00% (2ptCost)                

5/1 ARM I.O.                                                              Coming Soon!!!

JUMBO RATES (from $417,000 to $650,000)

30 Year Fixed                                                               6.875%                                

30 Year Fixed I.O.                                                      7.125%                                

15 Year Fixed                                                               6.50%                                  

5/1 ARM                                                                      6.125%                        

5/1 ARM I.O.                                                              6.125% (2ptCost)              

CalHFA

35 Year Interest Only PLUS (Up to $450,000)           6.75%                                  

35 Year Interest Only PLUS (Above $450,000)          7.125%                                

40 Year Fixed                                                               6.875%                                

30 Year Fixed                                                               6.75%                                  

FHA

30 Year Fixed                                                               5.875%                                

30 Year Fixed “Jumbo”                                              6.125%                                

3/1 ARM                                                                     5.625%                                

5/1 ARM                                                                      6.50% (1.5pt Cost)            

10 Year Bond                                              3.41%                                  

*all rates have one point in cost and subject to change depending on the qualification of the borrower and periodic rate

changes. 

Displaying blog entries 1-6 of 6

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Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489