Serena Russell ~ Bay Area Real Estate Specialist

Which one is it?

Simply put, buyers’ markets exist when there are a lot of homes on the market and very few buyers. If inventory–the number of homes on the market in your neighborhood–has been rising, it’s likely that the days on market  have been increasing. Couple that with declining sales figures over previous months, and home buyers are in an enviable position to negotiate. Here is how you can write a buyer’s offer to your advantage.

Read the rest of this entry »

Many people assume they can hold off saving for retirement and make up the difference later. But this can be a costly mistake. Waiting too long to start saving can make it very difficult to catch up, and only a few years can make a big difference in how much you’ll accumulate. This doesn’t mean there’s no hope if you haven’t set aside anything for retirement yet. It just makes it all the more important that you implement a plan today.

Start saving now

So how early should you start saving for retirement.  It’s not too early to start in your 20′s 30′s or early 40s. After that, you might have to save more per year, if you have not put away anything in previous years.  Start saving as much as you can, as soon as you can. The earlier you start, the longer compounding can work for you.

Take advantage of employer plans

Chances are your employer offers a 401(k), 403(b), or similar retirement savings plan.

Since pretax contributions are excluded from your paycheck, you’ll enjoy an immediate tax savings when you contribute to one of these plans.

Of course, you’ll have to pay income tax when you start receiving distributions from the plan, but it’s possible you’ll be in a lower tax bracket at that time.

Your employer’s plan may also allow you to make Roth contributions. There’s no immediate tax benefit (contributions are made with after-tax dollars), but qualified distributions are entirely free from federal (and most states’) income tax.

Even if you can’t contribute the maximum allowed, you should at least try to contribute as much as necessary to get any matching contributions that your employer offers. This is essentially “free money.” However, you may need to work up to six years before you’re fully vested in (that is, before you fully own) any employer matching contributions.

Read the rest of this entry »

Many people are afraid to buy a home no matter what the economic conditions.

But if you’re smart enough to see the opportunity   in the present economy, you might be in for the home-buying opportunity of a lifetime. For one, you can take advantage of the ‘buying power’ you had in today’s market by negotiating for seller credits, lower closing costs, repairs and even seller financing. But be prepared to face competition depending on the homes location & desirability.

People can get a lot of what they need and almost all of what they want today, However, when the market is  improving,  and soon your negotiating power will start to diminish.  Would you rather compete in a buyer’s market or wait until it becomes a sellers market and face multiple buyers and major disappointments. ??

Current market conditions indicate:

Stocks are up

Unemployment claims are down

Inventory of homes for sale is low compared with demand.

Jobs are starting to pick up………….which means more buying power in the hands of consumers.

If you’re qualified to buy a home now, and the purchase makes sense for your situation, and you’re prepared to live in that home for at least eight years then now is the time to buy.

Serena is a Realtor & property manager in the bay area. Meet with Serena for your free consultation, and to begin your search for that perfect rental property. Call or text (510) 303-2549.

Image via Wikipedia

Houses are affordable again.

Homes haven’t been this affordable since 1991. Economists often define affordability as the ratio of median home price to median family income.  Of course, some areas continue to defy affordability. Average mortgage payments are another way to look at affordability. Since the housing market’s peak in 2006, the average principal-and-interest payment in the U.S. has fallen from $1,063 to $645.

Mortgage rates won’t go any lower.

For the past couple of years, interest rates have hovered at levels last seen when the veterans came home from the Korean War. According to HSH.com, which tracks mortgage rates, at the beginning of August the national average 30-year fixed rate was 4.5 percent. FHA loans, which require only a 3.5 percent down payment, had a 4.3 percent rate. Adjustable-rate mortgages are even cheaper, and even rates for jumbo mortgages have hit lows not seen since the 1980s.

It’s a buyer’s market.

With so much selection, you’ll find more properties in good school districts or near your job, or homes that offer added value, such as a mother-in-law suite. You’ll spend less time shopping and competing against other bidders.

New home buyers: If you’re searching among entry-level homes, which had more extreme price declines than upper-end houses did over the past year, you may face stiff competition from investors. They typically pay cash, which makes them attractive to sellers who want to close the deal fast.

You may find a distressed property.

Bank-owned foreclosures (or REOs, for “real estate owned” properties) sell for an average discount of 35 percent off the per-square-foot price of conventional homes for sale, according to RealtyTrac.

Short sales, or homes sold with lenders’ permission for less than their owners owe on their mortgages, have also grown in number. Lenders have become more amenable to them as they seek to avoid the often huge losses associated with foreclosures.

Banks may still take two to six months to sign off on a short sale, so patience is imperative.

Homeownership is still attractive.

A home is the biggest purchase most people ever make. But deciding whether and what to buy isn’t purely a financial decision, says Chris Herbert, research director at Harvard’s Joint Center for Housing Studies. When you own a home, you can control your living environment and security, upgrade and change your home as you see fit, and create a sense of rootedness in your community.

You can offset some of the cost of homeownership by deducting mortgage interest. But don’t mistake a home for an investment, at least not in the short run. “If your goal is to jump in and get a return of 6 percent annually, that’s a bad idea,” says Fiserv’s Stiff, given the forecast for weak price appreciation. Instead, you need to commit to owning the home for at least five to seven years to ride out any further price declines and recoup your down payment and transaction costs. If you think that you might need a bigger home before that time to accommodate a growing family or that you might have to move to another area for your job, don’t buy unless you’re willing to become a long-distance landlord.

Shop carefully, and be patient.  It may take three to four months to find the right house.

Property Investment

There are several types of properties today. However, most homeowners are undecided in terms of purchasing a new property or a fixer-upper property. Other than finding an agent and a lender, you need to decide on the type of property you want to get. Some find it better to purchase a new property. However, there are also those who find it more convenient to purchase a fixer-upper home.

The decision relies on you and your circumstances.  Consider several factors before you decide.

YOUR REASON TO BUY: People don’t just buy houses to live in them. Many people also look to buy investment properties, or homes from which they wish to eventually profit. One of the most profitable ways to do that is to purchase a fixer-upper–a house that is in need of repair.

Fixer-Upper Strategy

Fixer-upper houses are houses that need a little work to increase in value. Real estate investors that purchase fixer-uppers tend to get houses that are not in condemned status or require a major repair, such as replacing an entire house’s worth of plumbing. Instead, they look for homes that are located in nice areas but need aesthetic upgrades. Or they may purchase fixer-uppers that are nearby expanding neighborhoods, hoping to repair the home by the time the property values rise. This practice is referred to as flipping a house. Fixer-uppers can become more profitable if the homes can be restored within a short amount of time relative to the purchase.

ADVANTAGES:  to buying a fixer-upper. First, it is inexpensive. This means that you can save a lot. This is great if you are on a tight budget. Next, you can personalize your property by renovating it yourself. You should be prepared since most of these properties need a lot of work and you might not be able to move in right away unless you make the essential repairs immediately.

COSTS:  Decide how much you will spend on repairs and renovations. A home inspection prior to purchase will give you some ideas of how to proceed. Talk the inspectors & bring a contractor to your meeting.  A good contractor can help assess how much you need to spend on the property for the needed repairs.

If you are a contractor, then you could do most of the work yourself, and save even more money since you won’t have to hire contractors to work on the fixer-upper.  Keep track of your time and expenses to the finish.

For a list of latest foreclosures and how to buy low and sell high, contact me at you’re earliest.  I offer homebuyer seminars every Saturday & by appointment.  Pick up free materials and information to assist with your decision-making.

I specialize in first time buyers, investor properties, property management, & second home purchases. Contact me  for your FREE consultation today.  Experience guaranteed results & satisfaction.

It’s time to start planning for the remaining 11 months of the year & beyond.  Are you in the market for a second property or vacation property?  Many homeowners are now considering the purchase of a second home or vacation home. Do you have a teenager or youth in college or about to graduate?  The gift of a home is the best gift you can give.  It is never too early to make a home purchase for your children.   The ability to own a home was not always easy. Homes were not always inexpensive to buy as they are now.   California dreaming is a thing of the past. It has become a reality for many average income people.

The market can be volatile in the short term, so make a commitment to owning your home for a good number of years.  Enjoy the freedom of rent-free living, and the tax advantages.  Owning also allows you to rent all or part of your home.  There are so many plusses to becoming a homeowner.  My experience of having bought & sold many properties over 20 years, gives me a greater advantage in assisting buyers & sellers. I would love to share my excitement with you.

There are many wonderful homes available and only a real estate professional can access all the details for you.   Find out why a property is on the market for a given length of time, how motivated the seller is, or if the property is a foreclosure or short sale, and how long it will take to close escrow.  This is just the tip of what you can find out when you work with a professional on your side.

For a list of latest foreclosures and how to buy low and sell high, contact me at you’re earliest.  I offer homebuyer seminars every Saturday & by appointment.  Pick up free materials and information to assist with your decision-making.

I specialize in first time buyers, investor properties, property management, & second home purchases. Contact me  for your FREE consultation today.  Experience guaranteed results & satisfaction.

MARKET CONDITIONS: The fact of the matter is rates are low and are expected to stay low for many months.  Combined with this are rental prices which are going up.  More and more homeowners are seeking to rent after having lost their homes to foreclosure or the sub-prime market scams.  Inventory of homes for sale is high, however loans are not as easy to find as before.

A rental property or duplex with tenants contributing rent each month might ease your cash flow shortages.  Your purchase may increase your wealth as the property gains value. After the first few months of operation, your monthly rents should take care of your debts and expenses. You’ll have more positive cash flow and you’ll be able to use it any way you want.   SOUND GOOD?  It’s up to you to recognize that there are opportunites that are created in any economy,  no matter what the statistics show.

VACATION RENTALS: Have you thought about owning your own cabin, cottage, seaside condo or vacation home; somewhere away from the city where you live & work; a place where you could get away to for weekends & holidays?  This same home could be rented ocassionally to cover your annual costs of taxes, upgrades or minor repairs.  Dont’ have a property manager?  Let me show you how to get started.  Property management services are very reasonable and will give you a boost in the early months of ownership.

Investors realize these opportunities and JUMP IN  at the earliest possible time. This is why you cannot find reasonably priced properties on the market for very long.  A first time buyer couple was looking for a home under 300K. They went to many open houses and searched online; drove by neighborhoods and talked with people on the internet.  Unfortunately, they were up against tough competition in their price range because investors were purchasing these properties for CASH.  CASH is king to the banks. If you are in this postiion, you should work with an experienced Realtor (like myself of course) who will guide you and enable you to make the best offer.

I have so much to share and explain, the content of which cannot be blogged. I will be here all day.  The special strategies I use are reserved for YOU THE CUSTOMER/ BUYER/CLIENT.  It’s up to you to find the motivation to buy now.  Time is running out!

While a new home may seem to be free of any defects,  home buyers are advised to hire a home inspector.  A home inspection can alert buyers to defects, if any are present.

Image via Wikipedia

If you are a buyer, then would you purchase a home without a home inspection?  As a new home buyer it is to your advantage to know as much about the property as you can up front & receive peace of mind regarding the condition of the home’s interior & exterior. Many types of inspections are available depending on the type of home and it’s features.  Specialty inspections and samplings are also available should you feel the need to have these done.

Although it is not a requirement of any home purchase most realtors will  strongly advise new home buyers to have  home inspection prior to closing.  However, you should note that the primary job of a home inspector is to conduct a visual examination of the physical condition of the house and certain systems within it.  Since the examination is visual, home inspectors are not required to remove

Image via Wikipedia

carpets to ensure the floors aren’t warped, for example, and may not walk on the roof to check for defects.  As a home buyer, you should talk with home inspectors ahead of time to find out what they will and will not cover as part of the inspection.

For a list of latest foreclosures and how to buy low and sell high, contact me at you’re earliest.  I offer homebuyer seminars every Saturday & by appointment.  Pick up free materials and information to assist with your decision-making.

Serena is a Realtor & property manager in the bay area. Meet with Serena for your free consultation, and to begin your search for that perfect rental property. Call or text (510) 303-2549.

Serena specializes in first time buyers, investor properties, property management, & second home purchases. Contact Serena for your FREE consultation today.  Experience guaranteed results & satisfaction.

SAN FRANCISCO (AP) — Steve Jobs saw the future and led the world to it. He moved technology from garages to pockets, took entertainment from discs to bytes and turned gadgets into extensions of the people who use them.

Jobs, who founded and ran Apple, told us what we needed before we wanted it.

“To some people, this is like Elvis Presley or John Lennon. It’s a change in our times. It’s the end of an era,” said Scott Robbins, 34, a barber and an Apple fan. “It’s like the end of the innovators.”

Steve Jobs left the world at age 56.

“Steve’s brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives,” Apple’s board said in a statement. “The world is immeasurably better because of Steve.”

President Barack Obama said in a statement that Jobs “exemplified the spirit of American ingenuity.”

“Steve was among the greatest of American innovators — brave enough to think differently, bold enough to believe he could change the world and talented enough to do it,” he said.

Outside Apple’s Cupertino headquarters, three flags — an American flag, a California state flag and an Apple flag — were flying at half-staff late Wednesday.

Cultivating Apple’s countercultural sensibility and a minimalist design ethic, Jobs rolled out one sensational product after another, even in the face of the late-2000s recession and his own failing health.

He helped change computers from a geeky hobbyist’s obsession to a necessity of modern life at work and home, and in the process he upended not just personal technology but the cellphone and music industries.

“Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life,” he said. “Because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important.”

Jobs is survived by his biological mother; his sister Mona Simpson; Lisa Brennan-Jobs, his daughter with Brennan; wife Laurene, and their three children, Erin, Reed and Eve.

A Collection of Inspirational Steve Jobs Quotes About Life, Design and Apple

A Collection of Inspirational Steve Jobs Quotes About Life, Design and Apple

“I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”

“I was worth over $1,000,000 when I was 23, and over $10,000,000 when I was 24, and over $100,000,000 when I was 25, and it wasn’t that important because I never did it for the money.”

“In most people’s vocabularies, design means veneer. It’s interior decorating. It’s the fabric of the curtains of the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a human-made creation that ends up expressing itself in successive outer layers of the product or service.” – Fortune

“Being the richest man in the cemetery doesn’t matter to me … Going to bed at night saying we’ve done something wonderful… that’s what matters to me.” – Wikiquote, as quoted in The Wall Street Journal (Summer 1993).

“You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.” – Inc. Magazine

Interest Rates (Photo credit: 401K)

Many would speculate that we have reached the tipping point in real estate. In fact the economy is showing signs of recovery.  The economy is showing signs of recovery. Lower unemployment claims and lower inventory are causing prices to rise and stiff competition in the median price range.  The interest rate rose a tad from 3.875 to 3.9. There are no signs of rates lowering any time soon.

Image via Wikipedia

So as predicted in 2010 & 2011, we are seeing  less inventory, which should hold prices from falling any further. Small fluctuations might still happen, but properties that are priced well and ‘move-in ready’ will still sell quickly.

It’s also great news for real estate investors. Due to suppressed prices combined with historically low interest rates, we will continue to see very good long-term investment opportunities.

Is 2012 going to be your year for a major move? If you want to find out more, you can contact Serena for a pre-approval or market analysis of your home or rental.