Looking for a Home Plus Guest Quarters Under $350,000? It's Here!

This upgraded and remodeled single family home the Circle Area of Long Beach has a lot of advantages for a new homebuyer because there's so little work to do! 

Who wouldn't want the upgraded bathroom, and the new kitchen with granite counters and recessed lighting, complete with the cooktop range with downdraft feature? Hardwood floors, dual-paned windows and a roof (2005) in geat condition help a new buyer get settled quickly. 

Verizon FiOS is already installed for state-of-the-art connections.

The nicely landscaped yard is completely enclosed, and patio areas are paved with Saltillo tiles. The side yard is good for play area or a dog run.  And, though it's not permitted, there are additional guest quarters of approximately 175 sq. ft. with bathroom which makes a great office space or a third bedroom also!

Two-car garage with laundry hookups. For current listing price for 3100 Spaulding St.,  See listing here..

Please call me for more info!  Julia Huntsman, Broker, Lic #1188996

Note:  This listing is off market.

Lower Loan Limits and a Higher 20% Minimum Down Payment?

Without an extension or permanent change enacted by Congress, loan limits will decrease from $729,750 to $625,500.  Couple that with new demands for a minimum 20% down payment for conventional loans and strict debt-to-income ratios, and there could be a very sad situation.

In many states these changes may not change too many people's lives.  But in California where the market has for years been higher than other areas of the country, those changes could be critical, decreasing ability of buyers and sellers to purchase and sell, and hurting the recovery of our market. There are 27 California members of Congress who have spoken out against these changes. Everyone should know how their homebuying or homeselling future could be impacted by these changes, and possibly be shut out of the market.

And to make matters more confusing, there have been alternate proposals, and different ideas of what defines a Qualified Residential Mortgage, meaning those mortgages that could be exempt from the new rules. While it may have started with good intentions, these new rules, if passed into law, could have unintended, unknown effects.



Know Your Local, Local Market: A Call to Confidence, for Buyers AND Sellers

Don't short change yourself.

Sometimes people act as if they are just looking for a reason to feel bad, and any attempts to correct, or just gently push away, negative assumptions are met with even stronger resistance.  Twice in four days, the negativity virus has struck people I'm talking to. (The open house rate can be much higher.) One person believed he has the worst looking house possible and that it will never sell, when in fact, a few immediate corrections, including some paint, costing $1000-$1500 would probably put the home on its path to a motivated buyer in at least his house price median. Unfortunately, this owner has fallen prey, over and over, to the repetitious negative media message about "the bad market", all the while knowing nothing about his neighborhood statistics. He couldn't believe he actually had an opportunity somebody out there is looking for: a solid little house with a large back yard in a nice neighborhood under $350,000. Instead, he was looking backwards at perceived complications and difficulties, not forward into the light of a sold property. Maybe he's just not ready, but just in case he's reading this, the light of a sold property can be a very happy light.

This is the real job of a real estate agent: educating the client, which in turn would fire them up with more enthusiasm and motivation about taking action. It's a shame to see a person get into a real funk, a downward spiral of mopiness, when I'm hearing there are buyers looking and looking for certain opportunities. Repetition of the message is where it's at.  The media knows this, and feeds on the human tendancy to embrace fear.  So Realtors have to know it also: We have to be prepared over and over, to show, act and tell wherever and whenever, the postive truths about a client's local market, and show them what solutions could work best for them, over and over. You can't convince someone of something they really don't want to be convinced of, however, repeating things over and over is the key to all learning. Yes, it's a challenge. 

I tried to explain to my prospective seller that the first time buyers are out there in great numbers, in fact, in Los Angeles County, about 60% of first time home buyers can afford a median-priced home (at the height of the market it was about 10%).  At the end of 2010, the LA County median priced single family home was $323,000 (per CAR), and for April 2011, it was $333,000 (per tax data).  And then I tried to explain that investors with all or 50% cash have been very strong in the market also, composing 30-50% of all sales in some markets, actually making it tough for the first time buyers who get outbid.  So Mr. Seller, for the right property in the right area, there's competition out there. Our unsold inventory in Long Beach is recently at 2-3 months (that used to be called a seller's market), the housing affordability index is now where it was in 1999 and 2000. The trickle up effect is that the higher end homes are selling more--those over $750,000 in Los Angeles County have decreased in supply of inventory compared to one year ago.

Just give peace a chance.

Single Family Sales--Market Snapshot for May & Past 12 Months in Long Beach

Date: Avg price Dec 2010 to May 2011
'Single Family Residence'
 'Long Beach'

The most sales of single family homes in Long Beach within in past 2 years is in the $200,000-$300,000 price range: a total of 1,347. The top selling area in that price range in the last 12 months was in North Long Beach, with 821 closed sales in the last 12 months, and continues to have the highest sales volumes for May, at 71 sales, in the same price category!

Based on a group of 60 listings, Bixby Knolls/California Heights area averaged $562,025 in May with 25 sales, with the Plaza and Los Altos areas at 21 and 20 sales for May. The top 5 areas in average sales price for May are Belmont Heights at $878,900, Belmont Shore/Naples at $842,000, Park Estates at $749,000 (4 sales), Bixby Knolls/Cal Heights, and Lakewood Village at $544,000. Remember, these monthly average sold prices are based on properties sold during May, and are not their list prices.
Overall, the chart, based on MLS data, shows an  upward trend--with monthly variances--in average price since December 2010 for the City of Long Beach.

New Listing: 555 Maine Ave., 309, Emerald Villas, downtown Long Beach

 Looking for that desirable "under $200,000" price? You have found it here. This is such an attractive east-facing unit in the Emerald Villas, bright and sunny in the mornings. Besides a great floor plan that features a master bedroom/master bath, plus a 2nd bedroom with a hall bath, inside laundry, and a third floor view, the buyer also receives all the appliances (microwave, refrigerator, stove AND stackable washer/dryer). The living room features a gas fireplace, and floor-to-ceiling beveled-seam mirrors on its entire south wall, plus Pergo flooring. Although it's not needed that often, this unit also has central air and heat. This is a nicely maintained unit that has been recently carpeted (bedrooms), painted in the last 2 years, with newer appliances since 2007.

If the buyer needs a loan source, I can possibly help with a source that provides 3% and 5% down conventional for condos. The building is currently FHA-approved, but its status for FHA after July 31 is unknown at this point. The HOA common areas include rooftop deck, central atrium pool and spa, and exercise room. HOA fees on this unit are $245/month and includes two side-by-side parking units. Location is near an elementary school, and all downtown amenities, including the Aquarium, Convention Center, and nearby freeway access.

Take advantage of this opportunity! These units sold in the $350,000 range in the high market. To see more on this unit, go to Long Beach Homes and Condos.  Now listed at $179,000! UPDATE: This unit is now re-sold.

Credit Impacts on a Short Sale? You Make the Call

I try to help people with this question: short sale or foreclosure, which is the better option? For most people, my reaction is, “Short sale, of course!” This has been mostly because I was always under the impression that a short sale, although still a ding on your credit, was easier on the score than a foreclosure.



But for some time, other sources have been saying, and according to a recent blog post by FICO Banking Analytics, that there is no real difference in the effect a short sale or a foreclosure has on your credit score. Supposedly, both the impact in points and the time to fully recover is about the same for both events.


But all this time I believed that the short sale was superior to foreclosure, largely because of its less adverse effects on credit. So I was forced to do further research into which was the better option. In doing so I learned about benefits of a short sale I wasn’t even aware of, and found that the FICO blog was not true all the time for everyone.


The fact is, each borrower’s credit situation is different, and the way that a creditor reports a short sale to bureaus is different. The reality is that hundreds of thousands of distressed homeowners who have chosen a short sale have experienced a lesser impact on their credit than those who have chosen foreclosure. One of the differences, for example, is how long the borrower had been delinquent on payments prior to the short sale, along with other credit factors.


And, another very big mitigating factor is that in a short sale, a distressed homeowner may be able to obtain another mortgage sooner than someone who has a foreclosure on his or her record. Did you know that more and more employers pull credit before hiring a potential employee, and a foreclosure might keep you from getting a job. Some employers pull credit reports on existing employees, and a foreclosure may not bode well for job advancement in certain industries.
To see a special report, go to www.juliahuntsman.com/briefcase/29690_526201142402PM32754.pdf  which can be downloaded.

These benefits stacked against the negatives of foreclosure, including the embarrassment of public announcement and literally being kicked out of your home, make, in my opinion, short sale the reigning champion.



Now you make the call!

Common (and Costly) Mistakes Borrowers Make

Getting a mortgage can be daunting, especially when there’s a lot of your hard-earned money at stake. It’s critical to spend a few hours researching how a mortgage works (or at least as much time as you’d spend researching a vacation or a car purchase) before you begin the process. Unfortunately, nearly half of prospective home buyers don’t understand essential mortgage information, according to a recent mortgage survey conducted by Zillow Mortgage Marketplace. This lack of basic knowledge is likely leading borrowers to make costly mistakes. Here are some of the most common mortgage misunderstandings, and how to avoid them. My comments are in italics--Julia.

Buying Mortgage Discount Points – Nearly half ( 45 percent) of those surveyed in the Zillow poll believe they should always buy discount points when obtaining a mortgage. However, because mortgage discount points have an upfront cost that can be recouped through a lower interest rate over the life of the loan, the decision should depend on how long you intend to own the home. In some cases, you may not plan to remain in the house for long enough to break-even after buying points. A discount points calculator can help you do the math.

Not Monitoring Rates - Mortgage rates can change multiple times throughout the day, similar to how stock prices fluctuate. But more than half (55 percent) of the people polled thought rates were set one time each day. To get the optimum rate, it’s important to monitor rates and talk to different lenders. When you compare various rates make sure you are comparing the exact same loan. I find prospective buyers with loan quotes or pre-approvals obtained 6 months or one year ago, thinking the terms will still apply! No, they probably won't.

Contacting Just One Lender – Many buyers believe lenders are required by law to charge the same fees for credit reports and appraisals. One-third (34 percent) of survey respondents do not understand that lender fees are negotiable and can vary by lender. Borrowers can save money by reaching out to several lenders and comparing rates and fees. Online services which allow for comparisons to various lenders can be a helpful start, but your story may not quite fit the online scenario which are generalized estimates. And trying to change lenders in the middle of your escrow may not be possible, so you should do your homework up front.

Not Considering Various Loan Options - Many people may automatically avoid certain loan products, like Adjustable-Rate Mortgages (ARMs) because they don’t understand how they work. For example, when asked if interest rates on 5/1 ARMs always reset to a higher rate after five years, the majority of those polled (57 percent) said yes. In actuality, after five years, the rate could increase or decrease, meaning that there’s a possibility for a borrower’s monthly payments to go down. Whether an ARM makes sense for you depends on your personal situation such as your appetite for risk and how long you plan to live in the home. As you consider different loan products, ask your lender to go through the worst-case scenarios to avoid any surprises during the life of the loan. This can be a very helpful step, along with being open-minded to hear and consider ALL possible options for you.

Not Knowing Basic Terms – As you begin to think about securing home financing, you may hear terms like "FHA loans" and "pre-qualification" get bandied around. According to Zillow research, many people don’t know what those terms mean. Forty-two percent of prospective home buyers thought only first-time buyers could qualify for FHA loans, and 37 percent believed if they pre-qualify for a loan it means they’ve secured financing. Familiarize yourself with basic mortgage terms before reaching out to a lender. Most importantly, don’t be afraid to ask your lender, or even your real estate agent, lots of questions about the loan throughout the process.  To"pre-qualify" for a loan does not mean you've secured financing, and neither does "pre-approval" (the preferred step to take), because loan approval is still ultimately contingent upon all the necessary lending steps being taken to fund the loan at close of escrow, including appraisal.

See article at Real Estate Insider News:  Common (and Costly) Mistakes Borrowers Make

Long Beach Single Family House Sales in April 2011

For the top ten sales areas (by numbers of sales), for both April 2011 and April 2010, does it look like we're having more houses sold? Yes!


April 2011 Long Beach House Sales

Based on a total of 130 listings for April 2011 and about 83 listings for April, 2010, these charts are the picture of activity for these areas.  The most sales in April 2011 (in this chart) took place in the Bixby Knolls/California Heights area at 38 sales closed, at an average selling price of over $449,000. Belmont Heights shows 20 sales at average of $631,000 and 21 sales at a $455,000 average in the Plaza/Ranchos.

April 2010 Long Beach House Sales

This seems to be a downward price shift and an upward shift in sales, from last year's lower number of sales and higher prices.  Last April the emphasis was on Belmont Heights/Alamitos Heights area which had a total of 19 sales at an average of $862,000 selling price, followed by 2 other areas with averages of $546,000 (Lakewood Plaza/Ranchos) and $481,000 (Los Altos areas).



In fact, Altos Research indicates for THIS WEEK, there is a decrease in days on market for all of Long Beach residential properties, currently the average is 150 days, a decrease from prior weeks. (Some properties are getting offers in 7 days after hitting the MLS.)

Will there will be a point where lower price and increasing number of sales signals triggers the opportune time to buy for an even greater number of buyers? If you think this is the critical time for you in one of these areas, or another, call me to find out how I can assist you!



April 2011 Condo Market in Long Beach



Condo sales April 2011

 There were 93 condos sold last month (April, 2011) in Long Beach, ranging from a high of $700,000 at 1400 Ocean Blvd. to a low of $49,000 at 315 W. 3rd St.  Of those, 27 were all cash transactions--nearly one-third of the total; 44 were financed with conventional lending; 13 through FHA lending.  The downtown area had 13 of the all-cash sales, or almost 50%.

In the Bluff Park area, selling prices ranged from $435,000 to $335,000 for 2-3 bedroom condos, and $234,000 for a one-bedroom. Downtown Long Beach south of 7th St. (excluding Ocean Blvd. properties), the average price was $147,000 for a 2 bedroom under 900 sq. ft., to a maximum of $248,000 for a 2 bedroom unit over 1100 sq. ft.  Condo properties in and around Marina Pacifica and Bay Shore Drive sold at a maximum of $688,000 and a minimum of $300,000.

To find out more about buying a condo or obtaining financing, please visit my website http://www.juliahuntsman.com/, or call me!

What Do You Do After Finding Out About the Notice of Default?

What if you have a Notice of Default recorded on your property? What then?
This is what happens when your bank or loan servicer no longer is receiving your mortgage payments, and they initiate legal action as stated in your loan documents, and according to California state law.

Once you start down this path, it can be a tough course to change unless you have the financial resources to pay the bank past due payments, plus interest and penalties.

Non payment can occur because your income has been reduced, you lost your job, your payment is going to increase above your means, and last, but not least, you wanted to get a loan modification and you were advised to stop making your payments.
The last reason is a common one, but it can lead the borrower down the wrong path. By the time he/she is behind 2-3 months in payments, it may turn out the homeowner does not qualify for the loan modification program. We hope you didn't pay anyone fees up front, because that's illegal now. PLEASE do not pay anyone an upfront fee for a loan modification, and get a second opinion at least before you stop making payments.
Your credit score will drop and the effect will continue as long as payments are not made, because every month the bank is reporting another 30-day late payment.
You have about 111 days from the recordation date until the time of the foreclosure sale. If your loan was made between Jan. 1, 2003 and Dec. 31. 2007, there is an additional 30 days for the lender to contact the borrower.  The Notice of Sale is usually recorded 20 days before the end of that period.
What can you do? 1) Pay your loan and make it current. 2) Put it on the market to sell it, either as a "regular" sale or a short sale depending on your loan-to-value plus costs of sale. 3) Rent it out, if you think market rent will cover the monthly costs, or your income will be able to make up the difference. 4) Try giving it back to the bank if there's only a first mortgage--if there's a 2nd with a different lender a deed-in-lieu will probably not work.

If you have considered all your options and you can't keep the property and your funds don't cover the deficient amount, please investigate a short sale. In most cases you will be able to obtain a future mortgage sooner than if you have a foreclosure--or a deed-in-lieu--on your credit report. More banks and servicers have become more efficient and able to deal with the volume of short sales in the market, and more buyers are willing to wait out the time period involved. Depending on the lender and the program, some short sales are being approved and closed within 90 days and less.  But remember, you have just a certain amount of time to obtain a buyer and get short sale approval, and then close escrow. Banks may extend the sale date one or more times, but usually they want an accepted offer in hand by a qualified buyer. So it's back to the loan modification point-in-time: think twice about not making your payment unless you know what's on the road ahead.

It will cost you nothing to weigh your options, a fact that more people should remember in spite of it being such a difficult thing to think about while you're in it. In fact, a lot of people let their properties go into foreclosure without having tried to sell it. Please don't do that without consulting with a real estate professional who's had experiernce with distressed properties.

Please contact me for a printed format on your foreclosure timeline, and for more information about the your options, and the difference between short sales and foreclosure. You may also go my distressed property page and also here for more information on foreclosure timelines and prevention.

The House Market in Long Beach Has Increased Last 3 Months



Long Beach Sales of Single Family Houses last 6 months

The Long Beach single family home market has been busy, especially in the last 3 months. Both the average sales price and the number of sales of houses has gone up.  The chart to the right is based on a group of about 1100 listings in the entire city, from November 2010 to the April 26, 2011, where the average price has risen from $379,515 to $419,100:

Month, #of Sales, Avg Price

Nov 2010 150  $379,515

Dec 2010  143  $387,407

Jan 2011   166  $374,575

Feb 2011  184  $404,359

Mar 2011  223  $435,699

Apr 2011  226  $419,100

LB condo avg price last 6 months

The news about condos is not the same: based on results of 330 condo listings in the same time period, the average condo price in Long Beach as a whole has dropped $225,042 to $133,969.

Figures for certain homeowner associations and certain local markets may vary, because of the concentration of sales data in the distressed property markets in certain geographic locales, which impact the overall city-wide results.
Data for Los Angeles County also shows a year-over-year drop for March of about $26,000 in the median sale price from March, 2010. In general, the condo market has been impacted strongly because they were the entry-level property by buyers who were vulnerable to the economy, a distressed property market which now attracting cash investors. However, for zip code 90803, Belmont Heights, Belmont Shore, Bluff Park and Naples, for the last 6 months, the stats show an upward trend--based on 42 listings--the sale price has increased from an average of $291,400 to $390,000. For 90802, we are back to the decrease in average selling price for the last 6 months: $225,000 in November to $100,000 in April, based on a group of 120 listings. Zip code 90814 has also decreased in its condo prices (Bluff Heights, parts of Belmont Heights, Rose Park areas).

For an evaluation of your house or condo, contact me, especially if you are not certain if your loan value is higher or lower than the market price for your home. There are options, and you should know your options now.
All chart data from CRMLS Matrix.

10 Flooring Options For "Fantastic Floors"

I really liked this article in REALTOR(R) Magazine Online today about the pros and cons of 10 different types of flooring--I wish it was a video to embed, but if you click on the link below you will go to an interactive display.

Often people make a choice because they love the way certain flooring appears, but don't consider the setting, or their own physical needs.

Have you ever considered leather tiles on your floor, or which part of your home where cork would make a good covering? These days everyone is thinking about eliminating allergens, and so they often think of removing their carpeting. But if you like carpeting, have you thought about the best kind?

Depending on the climate zone you live in, and your preferred maintenance plan, and longevity, choosing the right flooring may save you money--or not. Take a look at your options for linoleum, seagrass, bamboo, ceramic tile, concrete and stone.

Fantastic Floors - REALTOR(R) Magazine

How To OutBid the All Cash Buyer

The real estate markets in many areas, and not just in the United States, have much to be thankful for in the all-cash buyer. The all-cash transaction will be able to avoid a buyer's loan and appraisal requirements, in a market where appraisals alone have held up -- or killed -- some transactions completely. Appraisal issues, due to guideline changes, have eased up a little, but this does not lessen the desirability of the all-cash buyer in the eyes of the seller. This is especially true for "difficult" properties, such as major fixers, and condominiums in HOAs where the association may have other legal or financial challenges, including too many owners who haven't paid their monthly dues on time.
But it's a knife that can cut both ways. Some all cash buyers traditionally have believed that the seller will sell for a lower price in order to avoid a buyer's loan process. While that strategy may apply for certain cases, sellers are still just as concerned as ever about their net cash at closing. In a tougher market however, some sellers do prefer to get to a faster closing if they can accept the buyers terms. Buyers with loans who are attempting to compete with all-cash buyers should take a look at the percentages below, and also learn the specific neighborhood where they are likely to compete. The National Association of Realtors states that all-cash buyers made up 33% of all buyers in February, 2011. In 2010, the total was 59% nationally.

All Cash 1st Quarter 2011 Closings for Single Family Homes and Condominiums:

• Long Beach (23%) - 155 Cash out of 665 Total:  $254,091 average price, up to $1,800,000.
• Cerritos      (23%)  - 19 Cash out of  84 Total:     $382,210 average price, up to $990,000.
• Seal Beach   (32%) - 8   Cash out of 25 Total:      $440,706 average, up to $800,000 .
• Lakewood   (9.59%) -  17 Cash out of 163 Total:  $330,173 average, up to $500,000.
• Huntington Beach (20%) - 69 Cash out of  344 Total:  $452,409 average, up to $1,500,000. 

Therefore, buyers need to prove their strength to the seller, because if your seller has a lot of equity in their property, they are less likely to be interested in a "low-ball" cash offer.

Before shopping for a new home, go to a recognized lender and get completely pre-approved, by allowing your credit to be run and submit all requested to documentation to the loan officer.
Learn what the list-to-sell percentage is in your neighborhood of interest so that you can make a good offer that applies to the true value of the home.
Submit your lender's pre-approval letter and contact information with your offer.
Write in a strong deposit amount, at least 2% or higher, with your offier--this shows your commitment to the seller.
Understand the terms and conditions which may be associated with a short sale or and REO property: they are not the same negotiating experience as with an equity seller.
Be prepared to act quickly--you may not have days to decide if you want the property or not.
Have the patience and fortitude to keep looking if you lose an offer in the beginning, but asking some questions up front through your agent may help to avoid the worst calamities, and may help you find out what's important to the seller. If you can be flexible, your chances may improve.

And also remember, sometimes the cash deals fall apart also.

A Lower Assessment?, or, Have You Checked Your Property Tax Data Lately?

During the 1990s recession, many property owners filed for a re-evaluation of their property taxes because of the falling market prices, which meant a lower property tax. To do that--then, as now--there were certain forms and a procedure to follow to apply for that lower assessment. That information, by the way, is posted on the County Tax Assessor's site. One thing to know right now, though, is that the Los Angeles County Tax Assessor's office has been diligently pursuing the market trends and automatically lowering property assessments during this latest downturn.

If, however, you think you are still not getting the correct assessment, you should know that deadlines must be met, or you wait until the following year to make an appeal. Review your property data for square footage, number of bedrooms and baths, etc., to make sure it compares correctly with the real configuration of the property.

If you believe your property data as entered in the tax records does not represent the property, documentation will be required in the form of an appraisal (if you have one) or other documentation. For instance, if your home shows as a 3 bedroom on the tax records, but it was later modified and is functionally a 2 bedroom, this will require documentation to present to the Tax Assessor's office.

Be able to provide recent comparable sales (usually about 3) in your area to show current market values. If you need help with this, please contact me for information on filing deadlines, or the sold listings provided through the MLS that would be a comparable for your property.

And, while you're at it, you should make sure you've taken your $7,000 Homeowner Exemption, which also saves you a little more because it lowers your tax basis by $7,000.

By lowering your assessment, you save money.

How Many Short Sale Listings in Belmont Heights, the Shore and Naples Areas?







3923 E Vista

 Currently, including actives and those taking backup offers, there are 20 single family properties in short sale status in the 90803 zip code. They range in price from $449,000 for 3923 E. Vista St. to $2,350,000 for 5649 E. Corso Di Napoli.

3923 E Vista is a two-bedroom 1923 bungalow style home in Belmont Heights, east of Redondo Ave, with a detached garage.
The Treasure Island home on Corso Di Napoli is a bay front home with open water view, and includes two 48' boat docks.
It is listed as a two-story house, with 3 bedrooms and 3 baths, and a 2-car garage.



5649 E Corso Di Napoli

 There are 12 more active short sale listings in this area, including 2703 E 2nd St, listed at $740,000 in Bluff Park Historic District. This property is a 1909 craftsman style house on a corner lot, and is waiting for an offer! This is a great price in a neighborhood where recent sales have closed over $1,000,000.

Since December 1, 2010, 3 short sale (single family) properties have closed in this zip code; 3 properties closed as bank-owned sales; and 25 were listed as "standard sales", out of a total of 33 sold in all categories in the same time period.

If You Have Investment Property, Here Are Taxing Issues

It's tax time, and a lot of people are hitting my site to find out property tax rates. (As I've said before, in California, figure approximately 1.25% of the selling price for the initial property taxes. For more information on that, go to your local county tax assessor's site.) And, the lower federal income tax rates that were set to expire on December 31, 2011, have been extended for another two years.

Tax deductions which owners of investment property could be dealing with include:

Mortgage Interest – The interest owed on a loan used to acquire or improve an investment property is a tax deductible expense. In addition, interest payments on credit cards for goods or services used in rental activity is also deductible.


Depreciation – Residential income property can be depreciated over 27.5 years; commercial 39 years. Depreciation is often the largest deduction a real estate investor can take.

Repairs - The cost of repairs to rental property are fully deductible in the year in which they are incurred. The repairs must be ordinary, necessary, and reasonable in amount. Some examples of deductible repairs include painting and fixing broken fixtures. Replacing a roof would not be considered a ‘repair’, but rather a capital improvement and the cost associated with replacing the roof would increase the basis of the property.

Travel Expenses - Property owners are entitled to deduct the costs associated with traveling to and from the rental property. The drive to a property to deal with a tenant complaint would qualify as a tax deductible expense. Likewise, flying to Hawaii to repaint a rental property would also qualify as a tax deductible expense. For overnight travel, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction. Please note however that IRS auditors closely scrutinize deductions for overnight travel. To stay within the law and avoid unwanted attention from the IRS always properly document long distance travel expenses.

Home Office – Landlords may be able to deduct home office expenses provided certain minimum requirements are met.

Employee, Independent Contractor and Professional Services Expenses – Fees paid to gardeners, painters, attorneys, accountants, property management companies, real estate investment advisors, and other professionals can be deducted as operating expenses as long as the fees are paid for work related to the rental activity.

Advertising – Any advertising costs associated with marketing the property for rent or for sale can be deducted.

Insurance – Insurance premiums can be deducted for almost any insurance policy related to the rental property. This includes, fire, theft, and flood insurance for rental property, as well as landlord liability insurance.

Vacant Property -If the property is vacant either because the property is up for sale or is waiting to be re-tenanted, the owner may still be able to deduct all ordinary and necessary expenses (including depreciation) for managing, conserving and maintaining the property while the property is vacant.
 (Courtesy of Leonard Spoto, http://www.ax1031.com/)

Contact your tax advisor for complete professional advice.

Long Beach Sales Are Still Moving Forward

There's a lot of talk about how flat the market is right now, but it's important to keep in mind that real estate is local.



6 months sales in Long Beach

 The 6 month sales volume chart for single family houses in Long Beach (since October 1, 2010) shows about 206 sales citywide for February, which is higher than previous months.
And looking at the entire zip code for 90803 for the last 2 years (Jan. 2008 to Feb. 2011), sales have peaked at 18,19 and 20 in each of the highest 3 months in that cycle. January of each year shows typically the lowest number of sales, ranging from 4 to 7.

(Four years ago shows June 2007 with a peak of 31 sales in 90803 (Belmont Heights, Belmont Shore, Naples, Bluff Park), the highest of the entire 4 year period in one month.)


3 year sales volume 90803

 The average days on market in 90803 in the last 6 months has ranged between 72 to 143; the average sale price in the last 6 months has ranged from $688,000 to $1,113,000.

For a market snapshot of the MLS information for your area, just contact me about current average prices, times to sell and other information to help you know your market.

Lakewood Home - Reduced to $359900!!

Reduced to $359,900! Can be used in conjunction with FHA Rehabilitation Loan Program--Buyer may choose from a menu of options for repairs. Call me about this property today!! Less than one-half block from Lakewood High School, walk to nearby shopping on Woodruff Ave.  Very residential area. It needs some help but is a great opportunity for the right buyer. Has two-car attached garage, solar panels on roof, nice hardwood floors in the interior, large master suite, family room. Call! 
Julia Huntsman, Broker
Lic 01188996

UPDATE: this property is now sold.

A Short Course in the Meaning of Home Equity

What is your property's equity? This topic came up just recently in a discussion, and though we think it's a basic real estate question, we can't always assume that everyone knows how it gets answered. 

Basically, equity is the amount equal to the current market value of your home, minus all your liens, or what you owe. Ideally, if you bought a house for $200,000 and your only outstanding lien is your total mortgage amount of $150,000, then you have $50,000 equity in your house.

Some people may think that because they invested a certain number of dollars in their house as a down payment, i.e., $50,000, plus their additional funds to pay for closing costs, that they will get the remainder back when they turn around and sell.

But just like the disclosures advise about deposits into investment funds, that depends on what's happened to the market values in the time you've owned the property. And what improvements you've made to the home, and how they are currently valued (but not usually by the dollar amount you spent on them). And the location, and the condition of the property, and how your property may be perceived by the target group of buyers searching at any given time for a home like yours. In addition to these "standard" value issues, we have the following:

As is well known now, property values increased greatly a few years ago, and then started to fall--all due to numerous complex global market forces. This was great for people who sold their homes on the upswing: That $200,000 house might have sold for $400,000, and the owner's gross net at the close of escrow, after paying off their loan, was approximately $250,000--before paying closing costs.

But for people who did not sell until the market went down, maybe they broke even: Perhaps their home was worth $165000 on the current market and they had just enough left over to pay off the loan and their closing costs. Or, or if their home value declined even further to $150,000, then they are digging into their pockets to pay off the $150,000 mortgage plus the extra money for additional closing costs. This why many people, possibly as much as 30% of all mortgage borrowers at the present time, are in a short sale position, or "under water" in the market value of their home. If you don't have a need to sell, then you should not be affected by the downward cycle. However, if your employment income has been affected and you cannot continue with payments and you have to sell, or you have experienced some other stressful impact to your financial status, you are most likely in a short sale situation because the market values may have decreased below your mortgage balance (which is tied to your amortization schedule, not the economy), and therefore you have no equity.
First of all, you should get a good assessment of your current home value, some people actually still have some equity, or could possibly "break even", and a short sale could be avoided. If, however, you think you might be in a distressed situation, please contact me to find out your options, or you may go to the Distressed Properties section at http://www.juliahuntsman.com/ for a few free reports.

Real estate goes in cycles, and it always has. Some are harder than others. There are many many people who, through no fault of their own, have experienced a negative equity situation or even the loss of their home. But before that happens to you, you should find out if you're able to get a loan modification, or it not, what a short sale vs. deed-in-lieu vs. foreclosure would mean for you. It will cost you nothing, and could help you from the most severe impacts and a faster recovery in the future.

How Many Properties Are For Sale Under $300,000 in Long Beach?

Lafayette - Downtown Long Beach condos

The answer is, a lot.



The great majority of residential properties included here are single family houses and condominiums; the list also includes a much smaller number of lofts (a separate MLS designation), own-your-owns and co-ops.  The grand total from SoCalMLS is 618 listed as "active", regardless of selling condition (short sale, REO, probate, etc.), or the amount of HOA dues in the case of common area properties.

This inventory is not too different from last September's post when there were 631 on the market.

The breakdown includes the following:

• 295 are single family houses, 31 of which are partially in Wrigley, Alamitos Beach, North Long Beach, Rose Park, and their adjacent neighborhoods.
• 1 is classified as a loft in downtown Long Beach, and only 7 are own-your-owns or coops. More of the OYOs and coops have converted to condos, one of the recent projects underway is a co-op on Atlantic Ave.

• 314 (about 50% of the total) are condominiums, including the Marina Pacifica complex, Belmont Heights, Bluff Park and adjacent neighborhoods, The Lakes on Spring St.  The majority of condominiums are located in the 90802 zip code which includes Alamitos Beach, downtown Long Beach, Ocean Blvd. luxury buildings (31 condos are for sale along Ocean Blvd.!!)

There is opportunity for many people here right now--including 1st time homebuyers, second home buyers, and investors. For a property search of these areas go to http://www.juliahuntsman.com/ at the property search tab, where all types of properties, including 2,3, and 4 units, may be searched throughout Long Beach, Los Angeles County and Orange County and all cities in Southern California. And, also take a look at two listings: an Emerald Villas Condo at $185,000 and a single family home in Lakewood for $365,900.

Emerald Villas is an FHA approved complex!!



Short Sales are Working Better in 2011

Lenders are primed for short sales in 2011 because short sales are a terrific option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Lenders are projected to incur losses as severe as 85 percent in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!

It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.

In fact, right now in the Long Beach market, short sale transactions for condos and lofts increased by more than 200 units from 2009 to 2010.  Short sale transactions for single family houses grew from approximately 762 home in 2009 to 875 homes in 2010, or about 27% of all sold, cancelled or expired single family listings in the MLS.

Thus far in 2011, there are 593 single family homes in short sale status as active, in escrow, or otherwise on the market, out of a total of 1280 or 46%; and 380 condos and loft units are in the same categories of short sale, out of a total of 738, or 51%.

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. The free, downloadable report at "Distressed Property" called "On the Edge of Losing Your Home" on this website at Long Beach Condos and Homes talks more about working with your lender, and details all the foreclosure alternatives available to you.

Download the report and call me today; I can help you develop a plan to work with your lender and avoid foreclosure.

Take These Steps Towards a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past. If you haven't considered this option before, maybe now is the time to find out more.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1. Have a verifiable hardship, like unemployment, medical bills, or relocation

2. Must have a monthly income shortfall

3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency



If you meet these qualifications, follow these five steps to a successful short sale:

1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale

2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months

3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford

4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency

5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved


For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Looking Down That Road: Borrowers Need to Know Their Options

For some people, the picture of this highway might represent escape. For others, it could mean taking a new direction. It's important to know how this looks to you, or someone you're helping, because it probably represents the starting point of dealing with a potentially distressed property issue.

The national average is that about 1 in 7 or 1 in 8 homeowners is facing a difficult time with their mortgage. And recent statistics were published from the 4th Quarter U.S. Census data stating that there were 18.4 million vacant homes in the U.S. (11 percent of all housing units vacant all year round). While the breakdown of rentals, foreclosures held off the market, or homes not sold, etc., is not clear, we know that many of those homes used to be occupied by people whose were foreclosed on.
Did you know that many many people allow themselves to go through foreclosure without first checking their options, which include:

Consumer Credit: Tips for the Way to Better Credit

In spite of general information available online, many consumers are still "in the dark" about how credit scoring functions and the best actions to take to improve it.
In spite of advice on repairing credit, a tip from an professional who has been in the business for many many years, often the best way to improve your credit is to simply pay your bills on time and reduce your credit line debt as much as possible--your payment history accounts for 35% of your FICO score.
Many consumers have recently experienced reduction of their credit lines, which then increases the percentage of debt, which then lowers their credit score. If a line of credit allows up to $50,000 and the outstanding debt is $45,000, but then the line of credit is suddenly reduced to $30,000, the borrower now appears to have exceeded the credit line. So now, the FICO score may be lowered, even though the borrower is always on time with payments.
Another factor that can impact credit scores is that not all banks report their credit limits for a borrower, but instead reports the highest balance--this actually can end up lowering the borrower's credit score because the debt utilization percentage does not show up. (See Liz Pulliam's "Weird Stuff that Hurts Your Credit.")
Borrowers, in an effort to simplify their credit history, make the mistake of voluntarily closing a credit account. This actually can be a very bad thing, especially if it was established much earlier in the consumer's credit history.  Your credit history accounts for 15% of your score, so you could anticipate seeing that much of a reduction on your score: A score of 750 could be reduced to less than 650. And, for instance, if you had a bankruptcy, you may be categorized with others who have also, but if you have that bankruptcy removed from your record, you will now be compared differently, which can impact your score negatively.
Something else not generally known, is that simply by paying bills on time and reducing debt, your FICO score can also improve in a short period, sometimes in as little as 30 days (or a few months), depending on the various factors of your credit history. The FICO score is a mathematically produced number based on certain elements that are used by the Fair Isaac Corporation, and is very complex, but you can know its basic components:

• Type of Credit:               10%
• New Credit Inquiries:      10%
• Payment History:             35%
• Length of Credit History: 15%
• Amounts Owed:              30%

Further, many borrowers think that the credit scores they obtain online from a free credit reporting site is an accurate representation of their score, but in fact, they cannot substitute for the ones lenders must obtain when working with a potential homebuyer or refinance borrower.
Further, many borrowers believe that it is best for them to pay down all debt prior to obtaining a home loan, when that is not always the case.
Another important thing to know is that Fair Isaac Corporation, the maker of the FICO score, changes its model, and may be doing so again at this moment--this can change how much you are going to pay for your home loan. If you are looking into borrowing or refinancing at this time, current information would be extremely important for you.
One company works on "credit mapping" as opposed to credit repair. The borrower is advised to investigate what either type of company could do for them, but in general credit repair companies may cost $800 or more and in certain cases has not helped the borrower through it's actions. Another company uses credit mapping outlines for a particular borrower--at a much lower fee cost--based on their credit report and other circumstances, and what may best work for them, as opposed to the generic information found on sites such as http://www.myfico.com/ .  For more explicit information about credit mapping and general advice, see this article in the Orange County Register published last September.
In summary, you really need to know about your particular situation to best know what to to, before you make a move.
More tips about credit:  Improving Your Credit Score, Recognizing a Credit Repair Scam

California Market: Neither the Best Nor the Worst?

The Housing Predictor has published its 25 best and 25 worst markets for 2011, and fortunately or unfortunately, California is not on either list. Are things getting better finally? The appreciation predicted for the 25 best areas ranges from 2.3% to 3.6%, and depreciation in the 25 worst markets ranges from 8.2% to 11.5%.  For Los Angeles County, Housing Predictor foresees an overall 5.4% loss for 2011, with Sacramento and San Diego faring a little better in the 3-4% loss range, with Sacramento also on the list for one of the first markets to recover.  Sacramento is considered one of the most affordable cities in the state. Meanwhile, pointing out that California is the world's 6th largest economy, and that it's not "falling into economic ruin", the sluggish housing market is still affecting Los Angeles County. The tax credit that boosted sales in 2010 is not around now. Per Realist Tax Data, in fact, the overall median price of a single family home did increase from October to November in Los Angeles County, from $330,000 to $335,000--but the median price of a condo decreased by $5,000 from $305,000 in October to $300,000 in November.

Per data by Dataquick released yesterday and published today by the LA Times, a Southern California median home price was up by 1% in December from November, even though lower when compared to the end of 2009, while sales volume was up (Dataquick tends to lump both house and condo prices into one overall median).

However, did you know that a long-gone single family loan type has returned? The 3% down conventional loan for houses is back on the scene--and some condos and condo buyers may be eligible for a 5% down conventional loan. These loans should be a great help to the conforming loan market buyers and sellers.

This would be a good time to review The Cost of Waiting To Buy -- a blog article that receives the most hits since last May.

New Listing: 2 Bedroom Condo in Emerald Villas in Downtown Long Beach

This is a well-situated condominium in the gated Emerald Villas, a 1991 complex with resort-like surroundings.  This light and spacious-feeling 2 bedroom, 2 full bath unit features indoor laundry, including the stackable washer/dryer, a cozy fireplace in the living room and a city lights view towards the east. Both bedrooms are carpeted, and the hall area provides extra counter space and cabinets for work area and storage. There's plenty of closet space in each bedroom.

Parking is in a secure, gated garage for two side-by-side spaces. The central courtyard in the common area has a beautiful pool and spa, and the fountain and the well-planted entry area are a gracious introduction to this beautiful complex. The HOA also features a BBQ area, sun deck and exercise room, and is within short walking distance to a nearby school and park, and is very convenient for freeway access. More information on this unit listed at $189,000 at 555 Maine Ave., #208, Long Beach, CA 90802.
Julia Huntsman, Broker
Lic 01188996

NOTE: off market 9/7/2011

New Listing: Lakewood Single Family Home $379,900

A cute vintage 1942 home, ready for a buyer in Lakewood. It has a master suite with higher ceilings, and a large family room with a rock-faced fireplace. One bedroom could work well as an office or library, and there's room in the backyard for the spa and playspace. An attached 2-car garage has a door into the family room, and the huge tree in the front yard provides plenty of shade for this west-facing home.
While it needs some work, it has plenty of charm in this circular floor plan. Hardwood floors in the formal dining area, living and front bedrooms. Very well-priced for the area and the size, at $379,900.
Please see more at http://www.juliahuntsman.com/featured-listings.html.
2/25:  Now $365,900!!

Julia Huntsman, Broker
Lic 01188996