4. March 2009 by Burbank Real Estate.

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As a licensed Burbank Realtor I have never seen a better time for anyone interested in purchasing Burbank Real Estate.

Let’s look at 3 very compelling reasons I see for buying Burbank Real Estate as soon as you can:

• Interest rates are near historic lows
• Many homes are selling for significantly lower prices compared to a few years ago!
• You can take advantage of a tax credit of up to $8,000 for qualified first-time home buyers

Interest rates

Good mortgage loans are out there and rates have been extremely attractive!  When you look at the history of mortgage rates you can clearly see that mortgage rates have rarely been this attractive. When the economy starts to improve and real estate values increase, chances are interest rates will increase as well.  Current mortgage rates are extremely attractive!

Home prices are falling

Many homes listed for sale in the Burbank, Toluca Lake and Studio City areas are now selling for 30-40% less than a few years ago. There are many aggressively priced REO’s (Real Estate Owned)/ bank foreclosures which have driven home values down all across the San Fernando Valley.

A tax credit gift from Uncle Sam

Remember the faux credit of $7500 for first time home buyers?  I call it “faux” because it was not a credit, as it did have to be repaid.  Well, some good news here, under the recently approved First-Time Home Buyer Tax Credit in the “American Recovery and Reinvestment Act of 2009“, there is an actual credit(does not need to be repaid if you live in the home for 3 or more years) of up to $8,000.  As long as you have not owned a home in the last 3 years, this will be your primary residence and your income meets the appropriate criteria, you can qualify for the credi.

Make sure you talk to your CPA if you have any questions regarding these credits and how it will impact your situation.

Don’t forget to get pre-approved for a mortgage loan which will give you bargaining power when you find the home of your dreams and then start the search for your Burbank home.

Call me with any questions at 818-795-8474 or email me at ana@anaconnell.com

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10. February 2009 by Burbank Real Estate.

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When a listing is listed as a short sale it does not necessarily mean it’s a short sale.  What this tells you is that the listing agent and seller hope that the bank will accept an offer on the property.  When it says that the bank has approved a short sale at a particular price, then you know at least part of the hurdle has been cleared.  But banks reject offers all the time.

The main reason that banks reject short sale offers has to do with the following scenarios:

• Short sale offer price is too low or below what the bank has agreed to accept.  Remember that, by definition, a short sale is when a bank agrees to accept less than the amount owed to the bank.  Make sure you include a CMA(comparative market analysis) to justify your price.  The bank will look at several appraisals, so if it feels it can do better it will reject your offer.

• Offer package is incomplete.  Make sure you get a list from the bank of all expected documentation.  Don’t be surprised if you agent ends up having to fax the documents several times as the banks are notorious for losing or misplacing paperwork. It will help if everypage is referencing the property address.

• Buyer does not qualify for the loan.  This is standard practice nowadays, but make sure you are pre-approved for a loan before you make any offers.

• Bank sold the loan.  It’s not uncommon for the bank to sell the loan during the short sale negotiations.  Sometimes the bank does not realize it sold the loan until well into the process.

Remember that, on average, it takes anywhere from 6-12 months for a short sale property to sell, sometimes much longer.  I have seen offers get accepted 4-5 months after submission due to the backlog at the bank.

Buying a short sale property is not for the weak, but you can pick up some good deals if you know your area pricing.

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• Who is the Actual Seller in a Short Sale? (activerain.com)

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14. November 2008 by Burbank Real Estate.

Are you aware that the conforming loan limits put into place by the Economic Stimulus Act of 2008 will be going away soon?

The Federal Finance Agency (FHFA) just announced that starting in 2009 loan limits may change depending on where you live. The new limit will be $417,000 for the majority of the country, high cost real estate areas such as Los Angeles, Burbank, Studio City, Toluca Lake, San Fernando Valley etc. will be capped at $625,000. This is important as the current conforming limit for these areas is $729,750.

Many had been wanting the higher limit to remain as the conforming loan limit determines the maximum size loan that Fannie Mae(FNMA) and Freddie Mac( can buy or guarantee. Additionally non-conforming loans usually offer higher interest rates than then conforming loans.

There is still a strong lobbying effort going on to have Congress make the higher limit permanent, we’ll see what happens.
For more information:

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17. September 2008 by Burbank Real Estate.

In certain cities and in the County of Los Angeles when a home sells  a transfer tax is levied upon transfer of the property.

LA County charges $1.10 per $1000 of purchase price, Burbank charges $ .55 per $1000 and City of Los Angeles charges $4.50 per $1000 or purchase price.

While the county tax is not a huge amount, the LA tax can add up.  For example……on a $400,000 home:

LA County Tax……………………….$  450

LA City Tax(if applicable) ………$1,800

In this example if you purchased a home in the city of Los Angeles both taxes would apply and add $2250 to your closing costs.

Normally the seller covers this cost.

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3. August 2008 by Burbank Real Estate.

As you can see the downward trend is continuing, but certain communities are doing better than others. Burbank real estate sales of condos and single family residences were down 13.71% for the month of June, while sales in neighboring Studio City were only down 3.05%.

Real estate is local, which is why it pays to have a knowledgeable realtor on your side!

Home Sales For June 2008

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