Palm Springs Area December Closings

CLOSINGS FOR DECEMBER 2007

PALM SPRINGS/CATHEDRAL CITY

2007 Resales 189 New 21 2006 Resales 207 New 25

DESERT HOT SPRINGS/NO PALM SPRINGS/THOUSAND PALMS

2007 Resales 44 New 16 2006 Resales 75 New 32

RANCHO MIRAGE/PALM DESERT/INDIAN WELLS/LA QUINTA

207 Resales 235 New 52 2006 Resales 292 New 79

INDIO/COACHELLA/EAST TO THE COLORADO RIVER

2007 Resales 95 New 52 2006 Resales 141 New170

Mortgage Rates Fall To Lowest Level in Four Weeks

Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage with an average of 6.07%. The 15-year fixed-rate mortgage averaged 5.68%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 5.78%. The 1-year Treasury-indexed ARMS averaged 5.74%.

Frank Nothaft, Freddie Mac Vice President and Chief Economist, described this week's events. "The new year has begun with mixed signals on the direction of the economy and mortgage market. On the downside, the Institute for Supply Management's index of manufacturing activity showed significant contraction in this sector, perhaps a harbinger of a more substantial economic slowdown to begin this year. On the upside, the Conference Board reported that consumer confidence rose in December for the first time in five months, with more positive expectations for the next six months. Furthermore, interest rates have moved lower with average 30-year fixed-rate mortgage rates down about a tenth of a percentage point, the lowest in four weeks."

The 30-year loan started at 5.91% and finished at 5.66%. The 15-year loan began at 5.45% and finished at 5.17%. The money market fund began at 3.43% and finished at 3.40%. The $10,000 money market fund started at 3.68% and finished at 3.66%. The one-year CD started at 4.35% and finished at 4.32%.

Tax Law Changes for 2007

Tax Law Changes for 2007 ReturnsIn letter FS-2008-1 on Jan. 2, 2008, the IRS explained a number of changes that affect 2007 tax returns.At the end of December, Congress increased the AMT exemption to $66,250 for a married couple filing jointly and $44,350 for single persons and heads of households. For the approximately 13.5 million taxpayers who file the forms affected by the AMT change, they should delay filing until February 11, 2008. After that date, the IRS computers will be updated and able to process AMT calculations for tax returns.Other changes for 2007 affect the tax extenders such as the educator expense deduction and tuition and fees deduction. These are now in their normal places on the IRS forms.

Previously, the tax extenders were passed so late in the year by Congress that they were not on the regular form.Finally, the IRA contribution limits and many other items are increased. 401(k) elective contributions increase to $15,500. These limits and the additional $5,000 "catch up" amount for persons age 50 to 70½ also apply to 403(b) plans maintained by most nonprofits.

Any gift to charity of cash now requires a written confirmation. This can be a bank record or a written receipt from the charity showing the date and amount of the gift. Receipts are also required for gifts over $250 to charity or for a "quid pro quo" gift. This is a gift over $75 with benefit received from a charity. A typical example of this "benefit received" gift is a donor who pays $100 for a seat at the annual charity gala dinner. The value of the dinner will reduce his or her charitable deduction.Mileage rates were also adjusted in 2007.

The business use rate is 48.5 cents, the medical travel rate is 20 cents per mile and charitable mileage rate 14 cents per mile.Savings with Tax CreditsIn FS-2008-2 the IRS encouraged all taxpayers to take available credits. The credits are particularly valuable, since they reduce taxes dollar-for-dollar.

The earned income tax credit (EITC) is available for working families with incomes under $39,783 or childless workers with incomes under $14,590. Dependent children under age 17 will qualify for a credit of up to $1,000 per child. This is in addition to the $3,400 exemption.If your child is a dependent and under age 13, then you may qualify for the child and dependent care credit. For parents with students in college, there is a Hope credit for the first two years for students enrolled at least half-time. There also is a lifetime learning credit. Education credits are explained in IRS Publication 970.

The Saver's credit is available for single persons with incomes under $26,000 and married couples with incomes under $39,000. By contributing to an IRA before April 15, 2008, the Saver's credit may be claimed.

With the increase in oil prices and energy costs, many home improvements could qualify you for the energy-saving tax credit. Insulation, windows and doors, water heaters, heat pumps and other components may qualify for the $500 credit. In addition, there is a 30% credit for the cost of photovoltaic or solar water-heating units.

eFiling and Free FileDuring the last filing season, over 77 million taxpayers used the eFile system to send in their returns. Many CPA's and other tax professionals are now encouraging their clients to use electronic filing. In addition, taxpayers who complete their returns with software from a commercial provider may also use the eFile system. The eFile returns generally benefit from the error checking in the tax preparation software and are likely to have fewer mistakes.

Approximately 95 million taxpayers will also be eligible for IRS FreeFile. The FreeFile online tax program is a joint venture between the IRS and a number of commercial software tax software providers. Individuals with adjusted gross incomes of $54,000 or less are eligible. The FreeFile program is available on www.irs.gov.Editor's Note: To access any of the extensive information on the IRS site or to use FreeFile, a person should visit www.irs.gov. There have been millions of email messages to individuals claiming to represent the IRS that are fraudulent. The IRS does not use a .com, .org, .tv, .cc or any other address for its official site. The safe and sure way to access the site is to type in www.irs.gov.

Palm Springs Palermo

For a very limited time, your new home buyers at PALERMO will live nearly FREE for one year!

Palermo will pay your Palermo buyer's first year Mortage including principle & interest, real estate taxes and Home Owners Association Dues! This is an incredible new program in place & effective immediately, valued at approximately $40,000!!!

Palermo's 4 Town Home plans are 1275 - 1375 square feet of contemporary living...$389,900 - $399,900.

Palermo's 3 one-story Villa plans are 831 - 1131 square feet...$279,900 - $395,900 (2 bedroom/2 bath).

Call Mike McCoy or Ken Simpson at 760-333-1834

FHA Moderization Act

RISMEDIA, Dec. 18, 2007-The FHA Modernization Act of 2007, passed Friday by the U.S. Senate, would help protect the interest of America’s current and future homeowners by giving borrowers a safer alternative to riskier mortgage products while also helping many homeowners who may be facing foreclosure, according to the National Association of Realtors(R).

“A reformed FHA is positioned to help homeowners who face unaffordable mortgage payments as a result of resetting adjustable subprime loans and help bring stability to local markets and economies,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “NAR commends the leadership of Majority Leader Harry Reid, D-Nev.; Senate Banking Chairman Christopher Dodd, D-Conn.; and Sens. Mel Martinez, R-Fla., and Richard Shelby, R-Ala., for passing the Federal Housing Administration reform bill, S. 2338.”

NAR has long supported FHA modernization legislation that would increase loan limits, reduce or eliminate the statutory 3% minimum cash down payment, and give FHA increased flexibility and the ability to streamline certain programs, in addition to strengthening the loss mitigation program.

“FHA can once again be a leader in providing safe loan products and preventing foreclosures by authorizing lenders to help borrowers who are in default. That assistance will make a substantial difference for many families that may otherwise face foreclosure,” Gaylord said.
In addition, the increase in FHA mortgage loan limits would help first-time home buyers, minority buyers, and people who do not qualify for conventional mortgages. Increased loan limits would also help people living in high-cost areas; current FHA limits make the program unusable in these areas,” said Gaylord.

Gaylord noted that FHA has made mortgage insurance widely available to individuals regardless of race, ethnicity or social status during periods of prosperity and economic depression. The FHA program makes it possible for higher risk yet creditworthy borrowers to obtain prime financing.

“NAR recognizes and appreciates the Senate’s bipartisan effort. We hope this bill is sent quickly to the President and that he signs it into law swiftly,” said Gaylord. “As the leading advocate for homeownership and housing issues, NAR believes that FHA reform not only helps home buyers, but also is a good catalyst for the nation’s economy.”

In addition to NAR, HUD Secretary Alphonso Jackson, the National Association of Home Builders (NAHB), and the Mortgage Bankers Association feel this is a step in the right direction for homeowners.

“I applaud the Senate’s overwhelming passage of an FHA Modernization bill that will provide hundreds of thousands of hard working American families a safer mortgage option — whether they’re looking to purchase a home or refinance an existing mortgage,” said Jackson. “HUD’s Federal Housing Administration can provide many homeowners with a fairer, more affordable, and more sustainable alternative to costly subprime loans. I especially appreciate the bipartisan leadership of Senators Chris Dodd and Mel Martinez in our effort to reform FHA.
I strongly urge the House and Senate to send the President a bill he can sign before the end of the year. Keeping a roof over the heads of families is the best gift Congress could give the American public this year.”

“The nation’s home builders applaud the Senate action to modernize the FHA to allow the agency to carry out its mission to spur housing opportunities for America’s working families,” said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif. “The measure would offer borrowers a safe and fair mortgage alternative to the volatile subprime market. We urge the House and Senate to move quickly to iron out differences between their bills and bring this legislation to the President’s desk before year-end.”

“We applaud Banking Committee Chairman Dodd and Ranking Member Shelby, as well as other members of the Committee, for their efforts on this very important piece of legislation,” said David G. Kittle, CMB, Chairman-elect of the Mortgage Bankers Association (MBA). “Given the current housing market environment, modernizing FHA is something that the government can do that will have an immediate impact helping some distressed borrowers who are having trouble paying their current mortgages avoid foreclosure…This legislation will allow FHA to be more efficient and timely in meeting the needs of borrowers - which is especially important during this time of market turmoil. A revitalized FHA is crucial to helping low- and moderate-income and first-time home buyers realize the American dream of homeownership. We look forward to getting a meaningful FHA modernization bill to the President as soon as possible.”

7 tips for selling your home

Daily Real Estate News December 14, 20077

Tips for Selling a Home Faster

The seven tips come from an analysis of academic research, multiple listings service data, and from information posted on Redfin’s various Web sites.

1. Don't overprice your property. According to a 2002 academic study of 3,490 California listings, homes without a price reduction sold for 97 percent of the initial list price, whereas homes with a price reduction sold for 88 percent of the initial list price.

At McCoy-Simpson we will never tell you to over price your property just to get the listing like other agents. We want you to sell your home as quickly as possible by having your property listed for the best price.

2. Set your price to show up in Web searches. A September 2007 Redfin study analyzed how online search filters affect traffic to a listing. Because real estate sites filter on price in $25,000 or $50,000 increments, listings priced at or below these thresholds — $250,000 rather than $251,000, or $325,000 rather than $326,000 — get as much as 7.1 percent more online visits.

3. Debut on Friday. A December 2007 Redfin analysis of its online traffic for 119,079 listings across seven markets found that listings that debut on Friday get on average 7.7 percent more visitors in their first seven days than those that debut on the worst day, Thursday. For the majority of the US market.

Because we live in a second home and seasonal / vacation area we have found that the Debut of new listings are best on Saturday and Sunday.

4. Get sellers engaged with your agent. According to several academic studies, motivated, active sellers are able to sell their property as much as 30 percent faster.

At McCoy-Simpson, we always have our sellers engaged in the business of selling their home. It is a trusted and honest partnership!

5. Market the property online. Promoting a listing on Web sites beyond the local Multiple Listing Service can drive a significant number of new online visits to a property. A December 2007 analysis of 121 Redfin listings found that promoting the listings on Craigslist resulted in an average of 6.8 online visits to the property for each Craigslist promotion.

At McCoy-Simpson we list all properties on line, LA Times, Multiple Listing Service, Graigslist, Realtor.com (#1 website), Yahoo, McCoySimpsonProperties.com, Prudential Ca. Realty and many more.

6. Have sellers stay put. The study of 3,490 California listings, cited earlier, found that vacant homes were 9.5 percent more likely to undergo a price reduction. If you no longer live in the home the best alternative is that you stage the home.

7. If you have a number of neighboring foreclosures don't put your home on the market, wait for them to be taken off the market or sold. According to a November 2007 report from the Center for Responsible Lending, a foreclosure costs neighboring home owners an average of $5,000 when listing their property.

Contact Mike McCoy & Ken Simpson today for your free comparative market report, 760-861-6895.

HOPE NOW - Helping up to 1.2 million homeowners who could be eligible for assistance.

In August, President Bush announced measures to help many struggling homeowners, including directing Treasury Secretary Henry Paulson and Housing and Urban Development (HUD) Secretary Alphonso Jackson to work with lenders, loan servicers, mortgage counselors, and investors on an initiative to help struggling homeowners.

Secretaries Paulson and Jackson responded by assembling a private-sector group called the HOPE NOW Alliance. HOPE NOW is an example of government bringing together members of the private sector to voluntarily address a national challenge - without taxpayer subsidies or government mandates. Today, the President announced that these efforts have yielded a promising new source of relief for American homeowners.

President Bush announced that representatives of HOPE NOW have developed a plan under which up to 1.2 million homeowners could be eligible for assistance.

Many individual homeowners feeling financial stress have adjustable rate mortgages, which typically start with a lower interest rate and then reset to a higher rate after a few years. The HOPE NOW plan is designed to help subprime borrowers who can at least afford the current, starter rate on a subprime loan, but will not be able to make the higher payments once the interest rate goes up.

HOPE NOW members have agreed on a set of new industry-wide standards to provide systematic relief to these borrowers in one of three ways:

1. Refinancing an existing loan into a new private mortgage;
2. Moving them into an FHASecure loan;
or3. Freezing their current interest rates for five years.

Since the President’s announcement in August of actions to assist homeowners, the Administration has moved forward with the following:

1. A new initiative at the Federal Housing Administration (FHA) called FHASecure. FHASecure expands the FHA’s ability to offer refinancing by giving it the flexibility to work with homeowners who have good credit histories but cannot afford their current payments. In just three months, the FHA has received over 120,000 refinancing applications and has already helped more than 35,000 people refinance. By the end of 2008, the FHA expects this program to help more than 300,000 families.

The FHA is also on track to start charging mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards. Risk-based pricing will expand access and enable FHA to help even more low-to-moderate income families who could not otherwise qualify for prime-rate financing.

2. Secretaries Paulson and Jackson have assembled the private-sector HOPE NOW alliance. In addition: HOPE NOW recently mailed hundreds of thousands of letters to borrowers falling behind on their payments. In the past, some lenders and mortgage servicers may not have contacted borrowers until after their loans were delinquent. The Alliance is trying to reach families early, before their mortgage problem becomes overwhelming. HOPE NOW has supported a toll-free hotline, 1-888-995-HOPE, which is available 24-hours a day to provide mortgage counseling in multiple languages.

3. The Federal government is taking several regulatory actions to make the mortgage industry more transparent, reliable, and fair. Later this month, the Federal Reserve intends to announce stronger lending standards that will help protect borrowers. In addition, HUD and the Federal banking regulators are each taking steps to improve disclosure requirements so that homeowners can be confident they are receiving complete, accurate, and understandable information about their mortgages.

To aid in this initiative, according to the Announcement, members Of Congress would need to:

1. Pass legislation to modernize the FHA. In April 2006, President Bush first sent Congress an FHA modernization bill that would increase access to FHA-insured loans by lowering downpayment requirements, allowing the FHA to insure bigger mortgages in high-cost states, and expanding FHA’s authority to price insurance fairly, with risk based premiums. The House passed the bill with more than 400 votes last year. This year, the House passed it again, yet the Senate has not acted.

The liquidity and stability that FHA provides the market are needed now more than ever, and the President urges the Senate to move as quickly as possible. This bill could allow the FHA to help 250,000 additional families by the end of 2008.

2. Congress needs to temporarily reform the tax code to help homeowners refinance during this time of housing market stress. Under current law, if the value of your house declines and your bank forgives a portion of your mortgage, the tax code treats the amount forgiven as taxable income. The House recently passed this tax relief with bipartisan support, and the Senate should pass relief as soon as possible.

The Administration has also proposed allowing cities and States to issue tax-exempt mortgage bonds to refinance existing loans, and the President calls on Congress to approve this temporary measure quickly. Under current law, cities and states can issue tax-exempt bonds to finance new mortgages for first-time homebuyers, and this measure would make it easier for State housing authorities to help troubled borrowers.

3. Congress needs to pass funding to support mortgage counseling. Non-profit groups like NeighborWorks provide an essential service by helping homeowners find affordable mortgage solutions and prevent foreclosures. The President’s FY 2008 Budget requests $120 million for NeighborWorks and another $50 million for HUD’s mortgage counseling program. Congress has had these requests since early February, and it needs to stop delaying and get this funding to the President’s desk.

4. Congress needs to pass legislation to reform Government Sponsored Enterprises (GSEs) like Freddie Mac and Fannie Mae. GSEs provide liquidity to the mortgage market that benefits millions of homeowners, and it is vital that they operate safely and soundly. The President has called on Congress to pass legislation that strengthens independent regulation of the GSEs and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start, and the Senate needs to pass legislation soon.
While these initiatives were clearly lined up, reactions have been mixed those working with homeowners in distress.

NAR released an official announcement, citing their support for the Administration’s efforts.
“The dream of homeownership should not turn into a family’s worst nightmare,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, California. “As the leading advocate for housing issues, NAR has been working with Congress and the administration to protect homeowners who may be facing foreclosure as the result of predatory lending practices and as the interest rates on many subprime loans reset. The loan modification program introduced by President Bush and U.S. Treasury Secretary Henry Paulson is a good first step in helping deserving families keep their homes.”

NAR has been working with Congress throughout 2007 to modernize Federal Housing Administration programs that will once again make the FHA a viable mortgage product and help protect many current and future homeowners by offering a secure alternative to subprime loans. NAR has also been pushing Congress to reform Fannie Mae and Freddie Mac and increase their conforming loan limits, which will not only help home buyers but also will help improve liquidity in the lending industry.

“We are pleased that the administration has taken action today and are hopeful that Congress will now move quickly to approve FHA modernization and GSE reform,” Gaylord said.
Colleen Hernandez, president and executive director, of the Homeownership Preservation Foundation, a national non-profit organization that operates (888) 995-HOPE to assist troubled homeowners, also issued a statement in response to President Bush’s announcement on housing issues.

“Today’s developments underscore the importance of using trained mortgage counselors to understand how President Bush’s announcement impacts individual homeowners…Our counselors remain focused on today’s announcement as details of the plan continue to emerge…We encourage Americans, whether or not they believe that they qualify for the program introduced today, to contact their mortgage company or to take advantage of our trained counselors, reachable at (888) 995-HOPE, who can help them to understand these developments.

The National Association of Home Builders (NAHB) also expressed their support for the new plan.

“The Administration’s plan to help struggling borrowers stay in their homes is one of several steps that can help stabilize the housing market and reassure consumers and investors in the mortgage market,” said NAHB President Brian Catalde, a home builder from El Segundo, California. “We applaud this action and urge Congress to follow up quickly on pending legislation that would provide additional help in easing the credit crunch and restoring confidence in the marketplace.”

Specifically, Catalde called on Congress to:

- Enact FHA reform legislation to allow the agency to insure more home loans and help subprime borrowers.
- Strengthen regulatory oversight of Fannie Mae and Freddie Mac and allow them to purchase mortgages in high-cost markets.
- Enact legislation that eliminates taxes on mortgage debt that is forgiven as part of a loan workout.

More specifically, NeighborWorks® America applauds this important step support, as these efforts will help homeowners stay in their homes and preserve the nation’s communities.
The organization notes that there are many ways to assist homeowners facing financial difficulties. Loan modifications and interest rate freezes for homeowners who are current on their mortgages and will need help once their mortgage interest rates reset is just one way to help reduce the number of foreclosures.

Apprehension also followed this news, with sixty-one economists, signing a letter in conjunction with the non-profit advocacy group FreedomWorks opposing the “bail out.”

The letter warns that:

“Legislation to create new underwriting standards will reduce competition and restrict consumer access to credit. Additionally, efforts to bail out or shore up lending institutions create a moral hazard that would slow the adjustments required in the marketplace…. These [bail out] proposals would fundamentally alter the workings of the mortgage market, leaving consumers with fewer choices when seeking to buy a home and potentially increasing taxpayer exposure for bad loans.”

Former U.S. House Majority Leader Dick Armey, a former economics professor who now serves as Chairman of FreedomWorks, commented: “This letter should give policymakers pause in their rush to pass bailout schemes for the real estate market. Most of the policy proposals before Congress would arbitrarily rewrite private contracts, reward speculative lending and borrowing, and expose taxpayers to additional risks. Though it’s understandable that legislators might want to respond to homeowner difficulties, the proposed regulations only serve to decrease credit availability for the poor and disadvantaged. Today’s letter adds an important new voice to the debate, that of many of the nation’s professional economists, who are calling on Congress to act responsibly and allow the subprime market to work through the current repricing of mortgage-backed securities.”

Energy effeciency LED Holiday Lights & Safety

Light Emitting Diode (LED) lights offer a number of advantages over traditional incandescent lights:

- Energy efficiency: LEDs save up to 98% of the electricity that is needed to power conventional incandescent, painted or ceramic-coated bulbs.
-Environmentally friendly: The low electricity usage of LEDs means less carbon emissions. LEDs require no glass or tungsten because LEDs do not have a filament like incandescent bulbs, nor do the bulbs contain mercury or lead.
- Safety: LEDs generate much less heat when they operate so they are cool to the touch and are less likely to overload a circuit.
- Longevity: LEDS are much more sturdy and last up to 20 times longer than incandescent holiday light strings.

LED holiday lights are typically a little more expensive to buy than their incandescent counterparts. But they virtually pay for themselves in the first year’s electricity savings and thereafter, they are the gift that keeps on giving.

“LED’s are a festive lighting alternative that will provide customers with an energy-efficient lighting option during the holiday season,” said Lynda Ziegler, SCE’s senior vice president of customer service. “Saving energy is especially important at this time because the state’s tiered rate system can bump customer bills into upper rate tiers and higher per-kilowatt-hour costs during months when usage jumps.”

Holiday Lighting Energy-Efficiency Tips

Use a timer to automatically control when your holiday lights turn on and off.Use energy-efficient holiday lighting products. As the following table illustrates, some bulbs use energy much more efficiently than do other types.
The utility urges the public to remember the importance of electric safety when stringing indoor and outdoor lighting and using electrically powered decorations which are animated or inflatable.

Holiday Lighting Safety Tips

- Keep electrical connections off the ground and away from moisture. Water and electricity are a deadly combination.
- When hanging lights, make sure staples, tacks and nails do not pierce or pinch wires. Use plastic zip cords instead.
- Never get closer than 10 feet to power lines. Remember, trees may have power lines running above, near or through them. Do not throw light strands or electrical cords into trees.
- Do not use lighted candles on trees or decorations. During power outages use flashlights instead of candles.
- Use only lighting and cords approved by the Underwriters Laboratories (UL), an independent, nonprofit organization that tests electrical components and equipment for potential hazards.- Check all indoor and outdoor decorative lighting for frayed cords, broken wires and loose connections. If you find a problem, throw the strand away.
- Change bulbs only when the lights are unplugged.- Use lights and extension cords designed for outdoor use if placing them outside.
- Unplug lights when you leave home or go to bed. Use a timer so that they are on only during the hours you select. This can also help you save energy.
- Use only three strands of lights per electrical cord or outlet. An overload could cause a short circuit and a fire.
- Keep indoor trees well watered so that they won’t dry out and become fire hazards.
- Keep lights away from carpeting, furniture, drapes and other combustible materials.

The Appraisal Process

Knowing the Guidelines Solves the Mystery

The appraisal process often baffles sellers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and Real Estate Agents and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.

In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.

For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at a higher percentage of their value in newer homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace / subdivision your home is in. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of homes that have actually closed escrow.

Home not selling because of pricing?

Home not selling because your so far away on pricing?

If we have heard it once, we have heard a bazillion times: "I want to leave in some negotiation room in my price."

We have statistical evidence (at least in the local MLS) that those who "leave in some negotiation room," never have to worry about negotiating their price because they never have to face the grueling exercise of lowering their price -- because they never sell.

In the real estate world, we have a classification for those type listings: life listings, expireds and withdrawns. Pretty much it means 95% fo the time they don't sell because they never hit where the buyers are biting and true current home values are.

Many of the withdrawns went from company A to company B, but it still points out that sellers are overpriced and expecting too much for their houses even in the midst of a buyers market. Once they switch companies it is almost always accompanied with a price improvement.


The sellers who move on down the line with pricing become "former" owners and move on with their lives.

So when a seller tells us they want to leave enough room in the asking price for negotiation room, we tell them to take another gander at the statistics. The rationale goes something like this: if home sales are consummating at 3 percent below asking price, then we need to be up 3 percent to get the price we really want. The fact is if you price it so that several buyers want it, then you don't' have to give up your price. Take your emotions out of it and look at the true numbers that homes in your area are selling at and price it at or below the current selling price.

Don't be the most over priced house in the area be the best value priced home in the area and sell your home fast in this buyers market.

If you price right, actually you don't have to come down at all. Many of the houses in our market area are selling for the asking price. These are the houses belonging to sellers who dared to meet the buyers in the market instead of hoping the buyers would come up out of the market to make an offer.

A good market is always where the sellers focus on price and condition not their personal bottom line they think their home is worth.

Go with agents that tell you the truth like Mike McCoy & Ken Simpson at 760-333-1834 not what you want to hear. Many agents will tell you exactly what you want to hear about pricing and anything else just to have their sign in your yard.

In a buyers maket curb appeal is most important

Because we're in a buyer's market, curb appeal is especially important today. If the exterior of your home is attractive and well maintained, buyers are more likely to stop and look around.

So, inspect your property. Take a really good look at it, and be objective. A few minor improvements can lead to a real increase in the number of people who view your home and a much quicker sale.

You can enhance your home's curb appeal by taking some very easy steps:

Mow your yard, trim your shrubs, and remove any weeds, even if it's the middle of winter. You want your yard to look neat and clean.

Clean up the junk in your yard, especially if you have children. Put away bikes and toys. Pick up trash. Clean up dead tree limbs and fallen leaves. Disconnect the garden hose and store it in the garage. Store trash bins out of sight.

Keep your driveway and sidewalks swept and clean.

Paint the front door and door trim. In addition, change the deadbolt and doorknob so they look new and work perfectly.

Inspect your porch light. Clean it inside and out. If it's outdated, worn, or unattractive, replace it with a new light fixture.

Clean your windows inside and out. You want them to sparkle from the street. Consider hiring professional window cleaners; they're fast, they do a great job, and, usually, their services are reasonably priced.

Remove and clean your window screens, but store them in the garage. This will make the windows look cleaner. The inside of your home will look brighter, too.

Upgrade a plain doorbell with something fun or decorative. You can replace your doorbell for $20 or less. Just search online for "doorbell" or go to your local hardware store.

While you have your home for sale, keep your garage door down at all times.

If your fence can be seen from the street, make sure it looks good. Make repairs and give it a new coat of paint or stain before you put your home on the market.

Be on the lookout for elegant decorative outdoor items to buy and strategically place in your front yard.

Consider buying a fountain and putting it near the front door. (Fountains have become quite popular recently.)

If you really want to sell your home, consider how your potential buyers will see it while they are sitting in their car on the street.

Do the work necessary to make it look its best. Remember, your home only has one chance to make a good first impression.

How to Avoid Predatory Lending - by NAR

For most families, buying a home is the biggest and smartest purchase they ever make. Unfortunately, not all loans are in their best interest.

When loans hurt instead of help, they can quickly lead to foreclosure and even bankruptcy. It's important to learn the warning signs and common problems associated with predatory lending, and to ask the right questions when shopping for low cost loans.

The term, "predatory lending" covers a wide range of abusive practices. Some may be predatory for one borrower but not for another, because everyone's circumstances are different. Predatory lenders often take advantage of first-time homebuyers and others who may be vulnerable to high-pressure sales tactics, so it pays to know how to protect yourself and who can help. Possible warning signs of a predatory loan

It sounds too easy: "Guaranteed approval" or "no income verification" sometimes indicate that the lender doesn't care whether you can afford to make the payments over the long haul.
Excessive fees: Make sure fees are typical of those in your market. Because these costs can be financed as part of the loan, they are easy to disguise or downplay. On competitive loans, fees are negotiable. It is common for home buyers to pay only one percent of the loan amount for prime loans. By contrast, a typical predatory loan may cost five percent or more.

Large future costs: High-risk adjustable rate mortgages with payments that rise substantially after a short introductory period are seldom appropriate for families who already have had problems repaying other loans. Home buyers should also avoid a large, single "balloon" payment (a lump sum due at the end of the loan's term).

Closing delays: A lender who deliberately delays the closing may be waiting for the commitment on a reasonably-priced loan to expire.

Over-valued property: Inflated appraisals can allow for excessive fees to be included in the loan, resulting in the borrower owing more to the bank than the home is worth.

Barriers to refinancing: Prepayment penalties can make it hard for borrowers to refinance and take advantage of a lower-cost loans.

No down payment loans: These loans may be split into two mortgages, with one having a much higher cost. Home buyers should be sure they can afford the payments.

Unethical document management: An ethical lender or broker will always require you to sign key loan papers, and they will never ask you to sign a document dated before the date you sign it.
Some common problems associated with predatory lending

Nearly all predatory lending occurs in the "subprime market," where loans are sold to people with less than ideal credit histories. Subprime loans have played an important role in helping millions of consumers achieve homeownership, but, unfortunately, some lenders abuse their role and take unfair advantage of vulnerable borrowers. Here are some common problems with predatory loans:

High interest rates and fees: Predatory lenders often charge extremely high interest and fees that are added into the total amount of the loan the borrower must repay. These lenders charge what they can get away with, not a fair amount based on the credit history of the borrower.

Broken promises & bait and switch: Sometimes home buyers are offered a new loan or a refinance of an existing loan that seems to meet all of their needs--only to find that interest rates and fees have changed when they get to the closing table. Agreeing to last-minute changes can cost thousands of dollars and result in a loan they just can't afford.

Loans that start low and go high: Adjustable rate loans are popular in today's market, but many that seem affordable are likely to have steep cost increases in the future. Avoid "payment shock" by considering whether you can pay for the loan both now and in the future.

Loan "flipping": Too many homeowners are persuaded to refinance their mortgage, sometimes repeatedly, when there is no real benefit. Even when a family receives some cash from a refinance, the gains should be weighed against the costs of excessive fees and a higher loan amount.

Steering: Some families who receive subprime loans could qualify for a much more affordable home loan. Predatory lenders use aggressive sales tactics to steer families into unnecessarily expensive loan products.

Ask the right questions when shopping for the lowest-cost loan REALTORS® develop relationships of trust with the families they serve, and can help you avoid predatory loans by encouraging careful shopping. Ask these important questions:

What is my credit score? Can I have a copy of my credit report?
What is the best interest rate today? Do I qualify?
Is the loan's interest rate fixed or adjustable?
What is the term (length) of the loan?
What are the total loan fees?
What is the total monthly payment? Does this include property taxes and insurance?
If not, how much will I need each month for taxes and insurance?
Is there an application fee? If so, what is it, and how much is refundable if I don't qualify?
Are there any prepayment penalties? If so, what are they and how long do they last?

If the loan is an adjustable rate mortgage (ARM), ask:

What is the initial rate?
How long will that rate stay in effect?
How is the adjusted interest rate determined? (Generally, a specified amount-the "margin"-is added to a current published rate-the "index.")
How often can the rate change?
How much can the rate go up each year and over the life of the loan? What is the maximum monthly payment you could be required to pay? Would you be able to afford it?
Does the loan set a minimum interest rate?
Do the monthly payments gradually decrease the amount you owe even if interest rates increase? (With some loans, the amount you still owe can increase rather than decrease each month-called "negative amortization.")
Does the interest rate increase if your payments are late?
Could you qualify for a loan with the maximum interest rate permitted under the mortgage?
If not, do you anticipate earning more in the future so you will be able to afford the higher payment?
Can the adjustable rate mortgage loan be converted (changed) to a fixed rate without refinancing into a new loan? Is there a charge to convert?

Other ways home buyers can protect themselves from predatory lenders

Check out lenders with the Better Business Bureau, government websites, or other consumer groups. How long has the lender been in business? Have consumers filed many complaints? Does the lender belong to a trade association with ethics requirements for its members?
Refuse to participate in transactions that may be fraudulent.

Share predatory lending "horror" stories with regulators, other consumers, REALTORS®, counseling groups, housing professionals, and the media.

Make contracts subject to the homebuyer receiving approval from a lender for a fair and affordable loan.

Avoid unnecessary contract extensions that could cause the lender's loan commitment to lapse.
Get educated on the value of your home by asking your REALTOR® for a comparative market analysis.

Review the HUD-1 closing statement before closing. Upon request, home buyers have the right to see this information 24 hours before the loan closing.

Report possible violations to appropriate federal, state and local officials.

This information is from the brochure, "Shopping for a Mortgage? Do Your Homework First," published by the NATIONAL ASSOCIATION OF REALTORS® and the Center for Responsible Lending. At Realtors.com

Information provided by the National Association Of Realtors

Make the Holiday Season Marry and Bright

Holiday Home Safety TipsHome decorations help make the holidays joyful and festive for friends and family. While you are stringing the lights and spreading warmth and cheer, one of the most important considerations is how to keep your house and family safe from fire and injury.

“A home fire, gas leak or electrical accident can be especially devastating during the holiday season,” says Sue Dempsey, vice president, North American sales & marketing, CSA International. “Yet a few indoor and outdoor safety precautions can help protect your family and achieve comfort and joy during the holidays.”

CSA International, a leading North American product certification and testing organization, offers these important tips for safe holiday decorating: CSA’s Top Twelve Tips for Holiday Home Safety

1. Going out? Lights out! Always turn off holiday lights when you leave the house unattended or when going to bed.

2. Don’t be dismayed, but discard the frayed. Carefully inspect holiday light strings each year and discard any frayed cords, cracked lamp holders or loose connections. When replacing bulbs, unplug the light string and be sure to match voltage and wattage to the original bulb.

3. Help your tree resist a fire. Try to purchase a freshly cut tree, as they are more resistant to fire. Keep your Christmas tree watered and far away from open candles. When using an artificial tree, choose one that is tested and labeled fire resistant. Regardless of the type of tree, place it away from heat sources such as radiators or fireplaces.

4. Contain any flames. Don’t use open flames or candles on or near flammable materials such as wreaths, natural trees or paper decorations.

5. Check for a certification mark. When purchasing light strings, extension cords, spotlights, electrical decorations, gas appliances or carbon monoxide alarms, look for the certification mark of an accredited certification organization such as CSA International, UL or ELT to ensure that the products comply with applicable standards for safety and performance. Also know the warning signs of counterfeit – and potentially unsafe – decorations, products and gifts. These warning signs include missing parts, instructions, safety features or warrantees; packaging with spelling mistakes or poor graphics; or products significantly lower-priced than all other brands.

6. Use one and be done. Never connect more than one extension cord together; instead use a single cord that is long enough to reach to the outlet without stretching, but not so long that it can get easily tangled.

7. Don’t meddle with outdoor metal. When hanging outdoor lights, keep electrical connectors off the ground and away from metal rain gutters. Use insulated tape or plastic clips instead of metal nails or tacks to hold them in place, and be sure to choose the correct ladder for the job.

8. Remember that timing is everything. Use a certified outdoor timer to switch lights on and off. Lights should be turned on after 7 p.m. to avoid the electricity rush hour.

9. Keep the gas behind glass. Do not use your gas fireplace if the glass panel is removed, cracked or broken. Only allow a qualified service person to replace fireplace parts.

10. Be alarmed. Be sure to install smoke and carbon monoxide (CO) alarms on every level of your home – especially near sleeping areas – and test the alarms monthly.

11. Be a friend to your furnace. To help prevent CO hazards in your home, have a qualified heating contractor perform a yearly maintenance check of your furnace and venting system, and clean or replace your furnace filter frequently during the heating seasons.

12. Clean the clutter. Do not store combustible materials such as gasoline, propane, paper, chemicals, paint, rags and cleaning products near your gas furnace. Gasoline or propane cylinders should only be stored outside the home.

For more information on holiday decorating and products that have been expert-tested and meet recognized standards for safety or performance, please visit www.csaholiday.com.

Courtesy of ARA Content

NY Times - Borrowers Face Dubious Charges in Foreclosures

Own a home you must click on link and read this story! Always read the fine print and question everything. It may cause haveick with your lown officer but it could save you time, money and your home. Please note not all lenders are like this.

"On Oct. 9, the Chapter 13 trustee in Pittsburgh asked the court to sanction Countrywide, the nation’s largest loan servicer, saying that the company had lost or destroyed more than $500,000 in checks paid by homeowners in foreclosure from December 2005 to April 2007.
The trustee, Ronda J. Winnecour, said in court filings that she was concerned that even as Countrywide misplaced or destroyed the checks, it levied charges on the borrowers, including late fees and legal costs.

“The integrity of the bankruptcy process is threatened when a single creditor dishonors its obligation to provide a truthful and accurate account of the funds it has received,” Ms. Winnecour said in requesting sanctions."

http://www.nytimes.com/2007/11/06/business/06mortgage.html?_r=1&th=&adxnnl=1&oref=slogin&emc=th&adxnnlx=1194365165-2GmGfie1llmsb0MzqpJbZQ

Plam Springs International Film Festival

Palm Springs International Film Festival
Official Souvenir Program Guide

Advertising Space Deadline: 11/30/2007
Materials Deadline: 12/7/2007

The 19th Annual Palm Springs International Film Festival, January 3-14, 2008, will feature a line up of more than 230 films from 65 countries, seminars, special events and Gala receptions. The Breakthrough Performance Award will go to Marion Cotillard for her performance as Edith Piaf in La Vie en Rose. Emile Hirsch (Into The Wild) and Nikki Blonsky (Hairspray) each receive the Rising Star Award at the Festival’s Awards Gala. More special guests will be announced as the Festival dates approach.

With over 120,000 attendees, PSIFF has one of the largest and most affluent festival audiences in America. During the PSIFF, the eye of the entertainment industry will be on Palm Springs and the Coachella Valley. Take advantage of the unique opportunity to be an advertiser in the official Festival Program Guide. Create high-profile awareness for your product or service by reaching an exclusive group of upscale decision makers.

The program guide is a combination of coffee table book and magazine and is carried by attendees throughout the festival as a visible reference tool. It is retained long after the festival as a souvenir and has a long shelf life.

In addition to festival attendees, the following VIPs receive the guide: key media representatives; each of the 1,200+ attendees and honorees at the Black Tie Awards Gala; each filmmaker and festival industry guest.

The Palm Springs International Film Festival, now in its 19th year, has secured its place in the global market as the portal for the best in international cinema, earning the respect of domestic and foreign filmmakers, filmgoers and trend watchers. This confluence of art and commerce brings together world class celebrities, award-winning filmmakers and audience members in record numbers while creating the ideal promotional environment for you and your advertising message.

With the ongoing support of corporate and community partners, the Palm Springs International Film Festival is now one of the largest in the nation. It represents a unique opportunity for you to reach a broad demographic, as well as highly influential and celebrated members of the national and international filmmaking communities.

Call today to reserve your space:
Janet Spiegel 760-567-7639 Janet@psfilmfest.org
Deborah Godley 760-485-2704 Deborah@psfilmfest.org

Asylum One of Palm Springs Best Home Stores

Asylum on of Palm Springs best stores for Furniture, Artwork, Lighting, Accessories, Rugs and Gifts just celebrated its first anniversary on Friday Night. If you have not been to this store at 844 N. Palm Canyon Dr. you need to go. Palm Springs is in great need of stores of this caliber and the only way that it will stay in business and grow is with our support. Tel 760-864-1171, www.asylumhomestore.com

Shop in Palm Springs we have some of the best boutiques in the valley.

Mortgage Rates Fall - Time to buy

Mortgage rates have fallen to lows not seen in five months, according to the latest weekly report from Freddie Mac.
The average interest for 30-year fixed loans was 6.26 percent, compared to 6.33 percent a week ago; and this was the lowest level since rates averaged 6.21 percent during the week of May 17. "Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks," according to Frank Nothaft, chief economist at the mortgage finance giant.
Also, rates on 15-year fixed products fell to 5.91 percent from 5.99 percent last week; rates on five-year adjustable rate mortgages declined to 5.98 percent from 6.03 percent; and rates on one-year ARMs slipped to 5.57 percent from 5.66 percent a week ago.

PS Chamber of Commerce board of directors - Yes on C

PALM SPRINGS, CA (October 31, 2007) – During a special meeting today of the Palm Springs Chamber of Commerce board of directors, the Board voted in favor of endorsing a “Yes” vote on Ballot Measure C.
Ordinance No. 1689, passed by the City of Palm Springs on May 17, 2006, will grant a ten year extension (to June, 29, 2016) of the Development Agreement between the City and Shadowrock Real Estate Development LLC. Through Ballot Measure C, voters of the City of Palm Springs will determine whether Ordinance No. 1689 and the ten year extension of the Development Agreement should be approved.
“The board considered, very seriously, all the arguments articulated by both sides of the Measure,” said John Pivinski, Chamber CEO. “And is confident the developer and the City have appropriately and completely taken every precaution to preserve the natural beauty and environmental integrity of the Chino Cone,” Pivinski added. Shadowrock brings the possibility of stimulating new business and commercial growth by adding a world class destination five-star resort and golf course that will attract new visitors to Palm Springs boosting our local economy.“We hope that the voters will make their decision based on facts and truths, and not the ardent rhetoric of an impassioned few.”

CONTEMPORARY LENDING GROUP OPENS BRANCH OFFICE IN THE GREATER SAN FRANCISCO BAY AREA MARKET

Palm Springs, CA – November 1, 2007 – Contemporary Lending Group is pleased to announce the opening of their new branch office in the San Francisco Bay Area. Consumers in the Palm Springs market have had the opportunity to experience hassle free home mortgage lending and now borrowers in the Bay Area can experience the same. The company offers lending services for those buying or refinancing homes throughout California. Lending services also include land, construction and commercial lending.

As part of the growing Contemporary Lending Group team the company is also pleased to announce the addition of John and Jennifer Caravalho along with Bryan Bodas to open the Bay Area office. Both John and Jennifer have vast knowledge of home mortgage lending as well as home sales. John has over 25 years experience in the home mortgage field and has been an award winning performer for many years. Jennifer has over 15 years real estate experience which includes home mortgages, home sales as well as title and escrow. Bryan has been involved in residential real estate for over 10 years and has been involved in real estate loans for three years.

“Our mission is to set new customer service standards in the residential and commercial mortgage loan industry,” said Robert Gray, Principal and co-founder of CLG. “We strive to make the process easier, more comfortable and professional from the moment someone meets with one of our Contemporary Lending Group representatives, contacts us by phone, or visits our website (www.contemporarylendinggroup.com). CLG focuses on meeting their needs until the loan is closed.”

With extensive customer service and corporate experience with Fortune 100 and Fortune 500 companies, as well as the real estate industry, the firm’s founders examined the steps involved in handling mortgage loans and have streamlined the lending process. CLG offers financing through more than 40 lenders, providing a great variety of interest rates and payment options. The company offers in-house escrow and notary services, creating a one-stop shop, which tremendously enhances efficiency and save customers time. Refinancing can be completed in 21 days.

“Enhanced communication is crucial to meeting our customer service objectives,” said Alan Bloom, Principal and co-founder. Calls during regular business hours are answered by live personnel; customers do not have to encounter automated voice mail systems.

The company also offers online services, providing enhanced access around the clock. Customers can obtain loan applications on the Web and easily determine payments with a handy on line mortgage calculator. Additionally, customers can also utilize the “live chat” feature on our web site to interact with our Loan Officers via their computer.

Bloom and Gray have assembled a seasoned team of 14 fulltime loan officers and two loan processors. Contemporary Lending Group now has offices in Palm Springs, San Diego and the San Francisco Bay Area. For more information, visit www.contemporarylendinggroup.com

LGBT Estate & Financial Planning Seminar Series

FOR IMMEDIATE RELEASE:
OCTOBER 12, 2007

FOR MORE INFORMATION:
KIMBERLY NICHOLS
760.464.6000

BEST BEST & KRIEGER AND MERRILL LYNCH TO CO-SPONSOR FREE LGBT ESTATE & FINANCIAL PLANNING SEMINAR SERIES BEGINNING NOVEMBER 8, 2007

Best, Best & Krieger LLP and Merrill Lynch are co-sponsoring an extensive ongoing seminar series on all aspects of estate and financial planning geared to the specific and unique concerns of the LGBT community. The eight sessions will take place monthly from November 2007 through June 2008, alternating between the Hotel Zoso in Palm Springs and the Rancho Las Palmas Resort in Rancho Mirage. Each session will focus on one key topic, presented by BB&K estate planning attorney Joseph Hahn and Merrill Lynch financial advisors Mark Marshall and Daniel Lass, with occasional guest speakers. All sessions are FREE to the public. RSVPs are encouraged and attendees can call or e-mail Amanda Welsh at (760) 837-1605 or Amanda.Welsh@BBKLaw.com, to sign up.

“The LGBT community faces an entirely different set of concerns when it comes to planning their estates and finances and our goal with these seminars is to break these issues down into simple concepts so that everyone can formulate their own planning strategies and move forward in a way where they feel safe, secure and fully informed,” says Joseph Hahn, a BB&K Attorney who specializes in estate planning and probate.

The full schedule includes:

The Basics of LGBT Estate & Financial Planning
November 8, 2007
5:30 – 7:30 p.m.
Hotel Zoso

The Five Worst LGBT Estate Planning Mistakes
December 6, 2007
5:30 – 7:30 p.m.
Rancho Las Palmas

The Living Trust: Why You Need One
January 3, 2008
5:30 – 7:30 p.m.
Hotel Zoso

Financial Planning For Gay and Lesbian Parents
February 7, 2008
5:30 – 7:30 p.m.
Rancho Las Palmas

Minimizing Estate Taxes
March 6, 2008
5:30 – 7:30 p.m.
Hotel Zoso

Estate Planning for Your Companion Animals
April 3, 2008
5:30 – 7:30 p.m.
Rancho Las Palmas

Leaving Your Legacy: Charitable Giving Strategies
May 8, 2008
5:30 – 7:30 p.m.
Hotel Zoso

Planning Ahead for Long Term Care
June 5, 2008
5:30 – 7:30 p.m.
Rancho Las Palmas

Best Best & Krieger LLP is a full-service law firm with over 185 attorneys in offices strategically located to serve California's most dynamic communities. In meeting the needs of public and private sector clients, BB&K offers unique experience in handling complex, multi-disciplinary issues and providing solutions of common interest to leaders of both business and government. For more information, visit www.bbklaw.com.