Monday, January 25, 2010

Nicer Price at 310 Townsend

An expansive 1 bedroom home at approximately 1132 sq feet, 310 Townsend #303 comes back on the market at $749,000, down from its pre-holiday price of $785,000 (-4.8%). At $659/sq foot it is historically the lowest price per square foot at 310 Townsend to date. With a phenomenal central location, great floor plans and authentic brick and mortar charm (backdropped by a killer kitchen), this is a great opportunity to get into one of my favorite smaller buildings South of Market.

On Your Mark; Get Set; Become a House Flipper

Effective February 1st, 2010, real estate buyers will be able to use previously restricted FHA loans to purchase properties that sellers have owned for less than 90 days.

The policy change, which will temporarily remove restrictions on FHA-insured financing, is intended to expand mortgages to “flipped” properties, distressed properties which were purchased by the sellers to remodel and sell for a higher price. The intention of lifting the restriction is to promote an increase in home purchases and reinvigorate communities that have been negatively impacted by mass foreclosures. This could be a great opportunity for individuals who want to try their hand at real estate investment, since it will significantly open the buyer pool now that FHA financing is applicable.

You can read the official press release by the US HUD Department and full details here.

Thursday, January 14, 2010

Tick Tock Goes the Buyer's Credit Clock!

Home ownership advocates and Realtors pushed hard last year to extend the federal Home Buyers Tax Credit -the $8,000 first time buyer and $6,500 move-up buyer credits now run through April 30, 2010 - but resistance from sellers to put their properties on the market early in the year is wasting valuable time, which buyers and sellers need, to take advantage of the tax deduction.

With mortgage lending guidelines still very tight, the majority of real estate transactions are taking longer than the once-typical 30 days to close. To be safe, buyers should to be locked in to a sales contract by early February. This would allow a comfortable 60 days to tackle any financing hurdles and close before the April 30 deadline.

How do sellers benefit from the Home Buyers Tax Credit? One word: demand. Most of my buyers last summer would not have been shopping for a home without the incentive of the tax credit. Once the tax credit is no longer available, many buyers will pull out of the market. Putting your home on the market now ensures that you are taking advantage of an optimum buyer pool. There is no guarantee that the tax credit will be extended again, or for how long.

So don’t delay if you are selling your home –buyers are out there now; they are just waiting for the a positive flux in available properties.