Allison in her “work” mode for our weekly radio show on KSRO, 1350AM or at www.KSRO.com
“Tales from the Trenches” is the theme for tomorrow’s show on “The Real Estate Hour” heard every Sunday, 9 to 10am, www.KSRO.com. The market is surging and those underwater may actually be drying out! Plus what are YOUR options when negotiating a credit from the Seller in today’s hyper-competitive market? All this and more when Allison Norman and I take to the airwaves. PLUS your calls at: 707-636-1350.
Allison and I had great fun meeting listeners to the radio show this past Thursday at the Showcase Sonoma County sponsored by the Santa Rosa Chamber of Commerce. One person walked by the booth and heard me talking and blurted out, “I know that voice!” She then looked up and saw our banner (photo below) and said, “I listen to you every Sunday and have for years!”. She then pointed at Allison and said, “So you MUST be Allison?” God, I hope so!! We pop-up all around the county having made an appearance last week at the Senior Expo and soon at the Santa Rosa Connections networking event out at Ledson Winery end of this month.
So when the market TOOK OFF one of the thresholds it first encountered was the fabled $400,000 median price barrier–that was BACK in 2003. So TEN years later here we are again at another threshold? Or peak? Our median kept thundering along hitting a record $630,000 at the height of the bubble market in 2007. A whole bunch of foreclosures, loan Mods and Short-Sales later we are crossing the Rubicon once again. What can hold us back?
Europe exploding or more like collapsing under their economic woes?
What is the problem about exceeding the $400,000 Median? For many underwater households an increasing median price and price appreciation equate to a skin-diver snorkeling vs. a deep sea underwater vessel! Like when you look up while underwater and the closer to the surface you can start making out clearer object? Those underwater are saying, “Go baby! Go!” However, our crop of first time home buyers may be getting desperate as the median continues to climb. The higher it goes the less home one qualifies. FHA, VA buyers, low down folks, already snubbed for cash buyers, are seeing the dream slip through their fingers AGAIN!
At the height of the last big bubble market, 2007, our “Affordability Factor”, based on the median income of Sonoma County, was 6.5%. This meant ONLY 6.5% of families earning the income could buy a home. Our “Affordability Factor” was that of Santa Barbara with a median home price of $1,100,000. But the scariest portion of the last bubble market was the DUMB money out there. Fog a mirror—YOU’RE QUALIFIED. That is gone from the system. My friends keep telling me look out, $630,000 here we come. But I think the last 3 years of our market was all fueled by EZ lending practices and EVERYONE up the real estate food chair looking the other way. It went all the way to Moody’s who rated loan packages as A paper when the package was mixed with junk from all over the state of California and beyond. The economic boys and girls started scratching their heads when default rates, historically in the single digit range, jumped to double digits just MONTHS after origination.
But “Frank-Dodd Legislation” should make this an impossibility. Low inventory will drive the market to a point. WE shall see. Stay tuned!Below–Median Sales Price up 26% over last year and now sitting at $402,000 of TOTAL market (Condos, SFD’s and Country Property).
Fed: 96K Foreclosure Review Checks to Be Sent to Underpaid Borrowers
By: Esther Cho DSNews.com 05/09/2013
About 96,000 borrowers who received a check under the foreclosure review settlement should expect a second payment since their checks were for a lesser amount than what they should have received, the Federal Reserve announced in a statement.
The second round of payments to make up for the difference is only for eligible borrowers who had their mortgage serviced by former subsidiaries of Goldman Sachs and Morgan Stanley.Rust Consulting, the paying agent, stated the supplemental checks are scheduled to be sent around May 17 and will include a letter explaining the reason for the additional check.
In a release, Rust Consulting said “a clerical error” led to the lesser amount. The original payments were sent May 3 to over 217,000 recipients.
The Fed became aware of the issue Tuesday and directed Rust Consulting to send out supplemental payments as soon as possible, according to a statement.
The error is not the first issue check recipients have encountered. In April, regulators revealed early recipients had issues with cashing their checks due to insufficient funds.
More information on the foreclosure settlement can be found by visiting the Fed’s website.
Borrowers with questions regarding their payment can contact Rust Consulting 1-888-952-9105.
The settlement was first reached in January 2013 between federal regulators and 13 mortgage servicers. The agreement replaces the Independent Foreclosure Review first required as part of consent orders issued by regulators.
ALLISON NORMAN OF KELLER WILLIAMS DESIGNATED AS “EMERGING LEADER” BY THE NORTH BAY ASSOCIATION OF REALTORS (NORBAR).
Converges on Sacramento with 2500 other Realtors speaking to Legislator’s on private property rights on May 1st, 2013
Allison Norman, Realtor and one of the North Bay Association of Realtor’s up and coming leaders, attended the annual Legislative Day in order to press the issues of private property rights of real estate homeowner’s.Norman, Realtor at Keller Williams Realty, was chosen for her civic involvement and commitment to the Realtor code of ethics and her many homeowner clients.This annual event put on by the California Association of Realtors (CAR) featured a greeting by Governor Jerry Brown. Governor Brown stated when he was first Governor in 1975 he was committed to getting out the “old boy” network. Now he states, “There’s no substitute for Experience”. The Governor stated he is on track to lower the debt of the state and renovate an aging school system.
Norman Noted that many Bill’s introduced yearly by legislators with “point-of-sale” requirements force homeowner’s to add additional fees to the cost of Selling or buying a home. Such “point-of-sale” requirements can add $100’s of dollars to Seller’s already reeling from 6 years of decreasing home prices and shrinking home equity. The CAR has successfully fought these bills over the years saving the consumer $1,000’s of dollars in each transaction.
One of the main issues currently in Sacramento of major concern to Norman is the “Debt Relief” extension NOT yet ratified by the legislators. On the national level the “Debt-Relief” extension was extended by Congress to the end of 2013. However California has YET to extend this valuable aid for “underwater” homeowners facing serious tax consequences when selling their home for LESS than what is owed. The difference between the sales price and loan amount, usually a negative number, is considered “Debt Relief” and is treated as ordinary income. Norman noted that a homeowner selling a home for $300,000 with a $400,000 loan would have “debt-relief” of $100,000. In California this would be subject to income tax as ordinary INCOME for the year 2013.
Norman will be attending CAR meetings through the week. She is available for comments on her experiences at the meetings. Allison Norman, a Realtor exclusively in Sonoma County for 8 years, works with relocating home buyers and International clients.
If you would like more information on this topic or to schedule an interview with Allison Norman, please call her direct at 707-799-3617 or AllisonNorman@kw.com
Don’t risk losing thousands of dollars by not having your home in the MLS. Learn about the legal and ethical implications of pocket listings and, more importantly, how prices are affected when sellers choose to go off-market.
In Sonoma County, California, and across the state of California, Pocket, or off-market listings, are a significant concern right now for REALTORS® and their clients.
This California Association of Realtors Webinar addresses the “Pocket listing” issue.
Sonoma County, Ca. Our special guest today is Daren Blomquist. We’ll be talking about foreclosures and the real estate market; across the county, the state, and the nation. Since 2001 Blomquist has been instrumental in many facets of RealtyTrac as it has transformed into the industrial leader it is today.
He is also the managing editor of the company’s monthly newsletter, “The Foreclosure News Report”, which was named “The Nation’s Best Newsletter” by the National Association of Real Estate Editors, and is directly responsible for the creation of the company’s U.S. Foreclosure Market and Sales Reports which are cited by thousands of media outlets nationwide.
For our Realtor listeners only–This is a special offer from Daren at Realty Trac: “We also set up a special promotional offer for your listeners to get a RealtyTrac membership at a deeply discounted rate. This offer is for premium access to RealtyTrac, including address-level details along with owner, trustee and lender names, and much more. The special offer is $199 for a full year of access, which is nearly 70 percent off the regular rate of $49.95 a month. Basically they get a full year of access for the price of just four months.
As April 15th looms ahead, those in a 1031 Exchange need to be mindful of the time lines, especialy if you are WITHIN the 180 days of closing on your property or if you’ve just started the Identification process!! Great “Year-End” tax strategies for those in a 1031 Exhange with a tax deadline looming from our show favorite Toni Esposti or Old Republic Exchange Services. Also, don’t forget our 5 part series on “YouTube” on Tax deferred Exchanges.
Toni Esposit as she appeared on the “Real Estate Hour”, Sundays, 9 to 10am, KSRO, 1350AM or www.KSRO.com
Tax Deadlines and Reporting an IRC §1031 Exchange
With tax deadlines occurring in March and April, it is important to remember that an IRC §1031 tax-deferred exchange must be reported on IRS Form 8824 for the year in which the property is transferred to another party in a like kind exchange. Applicable due dates for filing federal tax returns are as follows:
Individuals, single member LLCs and sole proprietorships – April 15th
Partnerships and multi-member LLCs – March 15th
Corporations – the 15th day of the third month after the end of the corporation’s chosen fiscal year
Form 8824 and instructions to complete Form 8824 can be found at the following IRS links:
Finally, although most taxpayers have 180 days to complete an exchange, some taxpayers will have less time if their tax filing deadline occurs prior to the expiration of 180 days1.
In order for those taxpayers to get the benefit of the full 180 days, they must submit a request for an automatic extension of time to file their return. Individuals must file IRS Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Tax Return”, in order to obtain the benefit of the full 180-day exchange period. Business entities must file IRS Form 7004, “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”. These forms can be found at the following IRS links:
For more information about IRC §1031 exchanges, please visit www.orexco1031.com or call 800-738-1031.
1The exchange period expires on the earlier of the following two dates:
(1) The due date of the taxpayer’s tax return for the year in which the property sold
(2) 180 days after the date the taxpayer transfers the property.
Therefore, if an individual, single member LLC or sole proprietorship transferred a relinquished property on any date between October 18th, 2012 and December 31st, 2012, the due date to complete the exchange is April 15th, 2013. If a partnership or multi-member LLC transferred a relinquished property between September 17th, 2012 and December 31st, 2012, the due date to complete the exchange is March 15th, 2013. To get the benefit of a full 180 day exchange period, taxpayers must file a request for an extension of time to file their return.
EDD adds 40,000 NEW jobs for the state of California. Sonoma County Real Estate prices are tied to Unemployment. But a new report today, as reported by Beacon Economics, shows the California “Coastal” zones leading in shrinking unemployment roles. Unemployment came down 2/10ths of a percent. Good news is on the way. For a great interactive map of unemployment throughout the state of California go to the “Beacon Economics” page Interactive Unemployment Map Sound employment awaits the new Sonoma County resident or company.