I just received an email from Elizabeth Smith with Princeton Capital with the following encouraging news on the raiing of California Conforming Loan Limits. Enjoy!
Mark
CMPS Legislative Update - Higher loan limits inching toward reality!
Yesterday, the US House of Representatives overwhelmingly passed HR 5140 – an economic stimulus package that includes a temporary increase in the conforming loan limit and the upper threshold for FHA loan programs to as much as $729,750 in high-cost areas. The temporary increase would last only until the end of 2008. The bill would also restrict Fannie Mae, Freddie Mac and the Federal Housing Administration from guaranteeing or purchasing loans above 125 percent of the median home price for a given area. That means that the existing $417,000 conforming loan limit for mortgages eligible for purchase by Fannie and Freddie would not increase in areas where the median home price is $333,600 or less. The problem of course, is that as of right now, no one knows what the median home price is in different markets because this data has never been published by HUD!
Therefore, it would be up to the Secretary of Housing and Urban Development to determine the median home price for different housing markets "as soon as practicable," but no later than 30 days after passage of the bill, relying on existing commercial data where needed. In other words, if median home prices in your marketplace are $336,000 or less, this bill won't really affect you; and there's no way to tell if median home prices in your area are higher than $336,000 until HUD publishes this data. Nevertheless, jumbo relief is certainly on the way for places like California where median home prices are certain to be above $336,000.
Currently, the loan limit for FHA loan programs is between $200,160 and $362,790, depending on the county where the property is located. The proposed higher limits for FHA loan guarantees are also set to expire at the end of this year, unless Congress passes other legislation intended to modernize FHA programs by introducing risk-based pricing and lowering down-payment requirements.
While House leaders thought they had reached an agreement with the Bush administration to include FHA modernization as part of the stimulus package, they agreed to continue working on that issue separately at the administration's request, the Associated Press reported.
In order to make higher limits a reality, the next step is for the Senate to pass the bill and for the President to sign it into law. The target date for final passage set by the White House and Congressional leaders is February 15, so let’s hope for the best and we’ll be sure to keep you posted as we have more information.
Sources and helpful links:
· Inman News
· HR 5140
· FHA Loan Limit Search – (Current Limits)
Wednesday, January 30, 2008
Saturday, January 19, 2008
I Got Married!!!
May I introduce to you Mr. and Mrs. Mark Bruno!
I can't beleve t is already January 19th! I've been meaning to tell everyone that I got married December 29th in South Lake Tahoe! What a great weekend! We had a small ceremony under a white Aspen tree wth views of Lake Tahoe off in the distance. It was a beautiful spot to match my beautiful wife! Here's to many fabulous years together!
Cheers!
Monday, January 14, 2008
Dump This House! How to sell your home fast!
I watched this very informative interview on the Today Show this morning and thought many people could benefit from what was said. Here is a link to the video at the Today Show's website if you want to watch it or you can just read the article here.
http://www.msnbc.msn.com/id/22613143/
Dump this house! How to sell your home fast!
5 mistakes anxious sellers make, plus tips to get the highest sticker price
By Barbara Corcoran
TODAY
updated 5:59 a.m. PT, Mon., Jan. 14, 2008
So, you need to get rid of your house and you need to do it quick. Perhaps you have an adjustable rate loan that is about to skyrocket, or maybe you just got a job in another city. Whatever the reason, don’t panic. This may not seem like the best time to dump your house, but if you follow my advice, it's possible.
Below are the five biggest mistakes struggling homeowners make when selling their home. I’ll also show you some foolproof home-selling tactics that will get you the highest sticker price for your house.
The five big mistakes overanxious homeowners make:
Making small price reductions again and again
Nothing smacks of desperation more than incremental price drops. The longer a property is on the market, the more jaded the buyers become. The more times the price is cut, the staler the offering appears. Buyers reason that a lot of people must have seen it and that a lot of people must have rejected it. And if that is the case, then why even bother to consider it?
Instead, slash the price. Find out what your house is worth by looking at similar properties in the neighborhood and price it 10% below them. The most enticing houses on the market are the newest and the cheapest. If you can be both, you’ll offload yours in no time at all.
Hiring the wrong broker
There are many ways of finding a good broker. Personal recommendations from friends and colleagues are often the best way to go. If someone outside the real estate business with nothing to gain is bringing up a broker, you can be pretty sure you’re on to a winner. The best brokers — the top 10 percent — do 90 percent of all the business. So don’t get stuck with a lemon. You want someone with enthusiasm and drive, someone who will give you the attention you need and steer you through the whole messy process with courtesy and professionalism.
Waiting it out
If you decide to wait, you are joining the thousands of other homeowners who have also decided to wait. When a few decide it’s time to take the plunge, you are already too late. If you need/want to sell now, then sell now. There will never be a better time.
Showing your house before you get rid of your clutter
You wouldn’t try to sell your car without first clearing it out, would you? Trying to sell your house when it is full of clutter is the same thing. People don’t see charming family mementos and alluring bric-a-brac; they see visual noise, like empty soda cans and banana peels strewn on the back seat of a Chevy. The buyer doesn’t want to see your house; they want to see their house of the future. Find a temporary home for all of your cherished possessions and let the house speak for itself.
Not taking the first quick bid
This happens time and time again. The buyer gets a bite early on and they are suddenly filled with confidence. It feels like you’re standing over a pond packed with a million hungry fish. The first offer doesn’t seem great and you naturally assume there are bigger and juicier fish to be had. So you throw the tiddler back in. Big mistake. That “tiddler” is often the catch of the day.
Here are some tactics that will help you lure more buyers in:
Rent a wide-angle lens ($24 to rent for three days)
Buyers today shop by photos. Lots of good photos on a sunny day make your home look larger and brighter.
Sell your house on eBay
This is a foolproof way to get your home attention with really zero risk involved. The only cost is a $150 fee. Ebay draws a lot of traffic to your home and what makes it really great is that you can walk away at the end. The auction is noncommittal. Even if someone meets your price, you can always change your mind.
YouTube your house
A YouTube tour gives the buyer your personal perspective on what’s special about your house and can be linked with most major search sites. If you choose this method, you should be proactive in getting the video seen. Send links of the video to any interested parties and make sure your broker is doing the same. Insist that your broker get it on to their company’s Web site.
Go beyond traditional realtor networks
Two out of three homebuyers start their search online. The five highest-traffic Web sites are:
#1 yahoo.com
#2 craigslist.org
#3 zillow.com
#4 trulia.com
#5 homes.com
Make sure people visiting these sites are seeing your home. If you are unable to do this yourself, ask your broker to do it for you.
Organize a neighborhood open house
Join up with other neighbors on a Sunday to lure more buyers in. Include a latte cart or a giant inflatable house in the backyard for kids to jump on.
Include a financial goody bag for the buyerFor example, you could offer to prepay taxes or closing costs. You can also pay for a year of landscaping, pool cleaning or maid service. Be creative and see what kind of incentives you think would entice a buyer.
Offer a big broker incentive Consider offering your broker a weekend in Paris or a luxurious day at the spa.
Hire a professional home-stager
You can check www.homestaging.com for local members.
Remember to promote your own house On average, it takes eight lookers to get one bid. The more people in, the more bids you get.
Rent a local billboard in your neighborhood
This may sound far-fetched, but it is not as expensive as you might think. You could also create magnets for your car to advertise your home (with house picture and contact information). Or dress your kids and their friends in “Buy My House” T-shirts and send them to town. Sometimes whacky tactics like these pay off.
With all this in mind, get out there and see if you can’t buck the trend. If you are willing to do what is necessary, there is no market you can’t sell your house in.
http://www.msnbc.msn.com/id/22613143/
Dump this house! How to sell your home fast!
5 mistakes anxious sellers make, plus tips to get the highest sticker price
By Barbara Corcoran
TODAY
updated 5:59 a.m. PT, Mon., Jan. 14, 2008
So, you need to get rid of your house and you need to do it quick. Perhaps you have an adjustable rate loan that is about to skyrocket, or maybe you just got a job in another city. Whatever the reason, don’t panic. This may not seem like the best time to dump your house, but if you follow my advice, it's possible.
Below are the five biggest mistakes struggling homeowners make when selling their home. I’ll also show you some foolproof home-selling tactics that will get you the highest sticker price for your house.
The five big mistakes overanxious homeowners make:
Making small price reductions again and again
Nothing smacks of desperation more than incremental price drops. The longer a property is on the market, the more jaded the buyers become. The more times the price is cut, the staler the offering appears. Buyers reason that a lot of people must have seen it and that a lot of people must have rejected it. And if that is the case, then why even bother to consider it?
Instead, slash the price. Find out what your house is worth by looking at similar properties in the neighborhood and price it 10% below them. The most enticing houses on the market are the newest and the cheapest. If you can be both, you’ll offload yours in no time at all.
Hiring the wrong broker
There are many ways of finding a good broker. Personal recommendations from friends and colleagues are often the best way to go. If someone outside the real estate business with nothing to gain is bringing up a broker, you can be pretty sure you’re on to a winner. The best brokers — the top 10 percent — do 90 percent of all the business. So don’t get stuck with a lemon. You want someone with enthusiasm and drive, someone who will give you the attention you need and steer you through the whole messy process with courtesy and professionalism.
Waiting it out
If you decide to wait, you are joining the thousands of other homeowners who have also decided to wait. When a few decide it’s time to take the plunge, you are already too late. If you need/want to sell now, then sell now. There will never be a better time.
Showing your house before you get rid of your clutter
You wouldn’t try to sell your car without first clearing it out, would you? Trying to sell your house when it is full of clutter is the same thing. People don’t see charming family mementos and alluring bric-a-brac; they see visual noise, like empty soda cans and banana peels strewn on the back seat of a Chevy. The buyer doesn’t want to see your house; they want to see their house of the future. Find a temporary home for all of your cherished possessions and let the house speak for itself.
Not taking the first quick bid
This happens time and time again. The buyer gets a bite early on and they are suddenly filled with confidence. It feels like you’re standing over a pond packed with a million hungry fish. The first offer doesn’t seem great and you naturally assume there are bigger and juicier fish to be had. So you throw the tiddler back in. Big mistake. That “tiddler” is often the catch of the day.
Here are some tactics that will help you lure more buyers in:
Rent a wide-angle lens ($24 to rent for three days)
Buyers today shop by photos. Lots of good photos on a sunny day make your home look larger and brighter.
Sell your house on eBay
This is a foolproof way to get your home attention with really zero risk involved. The only cost is a $150 fee. Ebay draws a lot of traffic to your home and what makes it really great is that you can walk away at the end. The auction is noncommittal. Even if someone meets your price, you can always change your mind.
YouTube your house
A YouTube tour gives the buyer your personal perspective on what’s special about your house and can be linked with most major search sites. If you choose this method, you should be proactive in getting the video seen. Send links of the video to any interested parties and make sure your broker is doing the same. Insist that your broker get it on to their company’s Web site.
Go beyond traditional realtor networks
Two out of three homebuyers start their search online. The five highest-traffic Web sites are:
#1 yahoo.com
#2 craigslist.org
#3 zillow.com
#4 trulia.com
#5 homes.com
Make sure people visiting these sites are seeing your home. If you are unable to do this yourself, ask your broker to do it for you.
Organize a neighborhood open house
Join up with other neighbors on a Sunday to lure more buyers in. Include a latte cart or a giant inflatable house in the backyard for kids to jump on.
Include a financial goody bag for the buyerFor example, you could offer to prepay taxes or closing costs. You can also pay for a year of landscaping, pool cleaning or maid service. Be creative and see what kind of incentives you think would entice a buyer.
Offer a big broker incentive Consider offering your broker a weekend in Paris or a luxurious day at the spa.
Hire a professional home-stager
You can check www.homestaging.com for local members.
Remember to promote your own house On average, it takes eight lookers to get one bid. The more people in, the more bids you get.
Rent a local billboard in your neighborhood
This may sound far-fetched, but it is not as expensive as you might think. You could also create magnets for your car to advertise your home (with house picture and contact information). Or dress your kids and their friends in “Buy My House” T-shirts and send them to town. Sometimes whacky tactics like these pay off.
With all this in mind, get out there and see if you can’t buck the trend. If you are willing to do what is necessary, there is no market you can’t sell your house in.
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