Now is a Great Time for Orange County CA Home Buying

Orange County CA now has more than 8,000 homes listed for sale, which is up about 35 percent from one year ago. Home price appreciation has halted for now. Buyers have lots of choices these days and room for positive negotiation in many situations.

So why are some Orange County CA home buyers waiting? They seem to be nervous and on the sidelines for what they believe will be a real buyers market where they will get the best deals.

But buyers should not wait. Purchase money mortgage loan rates are still low and hover around 4.1% for a 30-year fixed rate for those who qualify.

Number of homes for sale listings is way up from last year and first part of this year, and buyers have much better choices now.

However, with an expected market time to sell all homes now on the market is just over 3 months, the current Orange County home selling market still favors the sellers is not yet close to a buyer’s favored market.

Buyers are wishfully thinking and not using facts and real housing data while they wait to buy.

2014 is very different from last year 2013 when Orange County CA was a sizzling seller’s favored market – with homes flying off the market at almost any price.

Just because prices have gone way up does not mean that the market has shifted to a buyer’s market.

Orange County home selling markets are moving more towards a normal, balanced market where neither buyers nor sellers will be able to call the shots.

Today, it’s still a seller’s favored market with very little price appreciation. That means that homes will sell close to the most recent comparable closed sales and sellers will be able to control the terms.

Buyers need to look at the facts about the market and not wait!

 

Coldwell Banker residential brokerage

By Harrison K. Long. Source of some information is Steven Thomas and his ReportsOnHousing.com.

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

Contact us at 949-854-7747 with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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What’s your income tax obligation on sale of your home? You should know and not be surprised at tax time.

What’s the amount of your income tax obligation on sale of your home?  You should know and not be surprised at tax time.

Home selling and income tax

When you sell your home, you would owe income tax on the amount of your “capital gain”, which is determined by determining your “adjusted cost basis” – not based solely on what you paid for the home.

To calculate amount of “capital gains” on sale of your home, follow these steps:

1. Purchase price is the amount you paid for the home – and is not limited to amount of money you actually contributed at closing.

2. To calculate adjustments on price, add the following: • Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage. • Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale. • Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s “adjusted cost basis” would be the total of your purchase price and adjustments – which is the “adjusted cost basis”.

4. Your “capital gain” amount is determined by subtracting the adjusted cost basis from the amount your home sells for.

Special exemption from income taxation on the sale of your home has been in place since 1997. Now up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from income taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.

• You have not sold or exchanged another home during the two years preceding the sale.

• You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

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This is for information only and is not the providing of professional tax advice or legal services.  For more detailed information on income taxes when you sell your home, see IRS publication 523 at http://www.irs.gov/pub/irs-pdf/p523.pdf.  Home sellers should always consult with an experience income tax professional or C.P.A. about details of their own situation.

By Harrison K. Long.  Professional real estate representative and California real estate broker – Realtor at Coldwell Banker Previews, Orange County, CA – CA BRE 01410855

People ask us for information about Orange County CA homes and neighborhoods. While understanding the importance of real customer service, we listen for the wants and needs of our clients, pay attention and never take for granted the customer relationship.

Connect with us at 949-854-7747 about listing and selling homes at Orange County CA.

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U.S. Estate Tax Is On Your Right to Transfer Property at Your Death

Some people we talk with are confused about what the U.S. Estate Tax is and on what basis that would be owed and paid.

According to the Internal Revenue Service the U.S. Estate Tax is a tax on your right to transfer property at your death.

This consists of an accounting of everything you own or have certain interests in at the date of death (Refer to Form 706).

The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your “Taxable Estate.” These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities. The value of some operating business interests or farms may be reduced for estates that qualify.

After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit.

Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 – 2005; $2,000,000 in 2006 – 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent’s dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013 and $5,340,000 in 2014.

Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse. This election is made on a timely filed estate tax return for the decedent with a surviving spouse. Note that simplified valuation provisions apply for those estates without a filing requirement absent the portability election.

For additional information, refer to the IRS and its Instructions for Form 706.

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By Harrison K. Long. Source of information is the Internal Revenue Service. See http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estate-Tax. This is for information only and is not the providing of professional estate planning or tax services or legal services. You should always consult with an experienced attorney or a certified public accountant about estate taxes for yourself and your family.

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Surf’s Up with Newport Beach CA Home Selling Prices

Surf’s Up with Newport Beach CA Home Selling Prices

TN dpt-wedge-1People love Newport Beach CA where homes near the Harbor, the Back Bay, and beaches are some of the most popular for buyers in this city famous for residential living and investment.

 

Newport Beach CA homeowners like recent selling prices and solid values.

81 Newport Beach homes have sold during first 29 days of July 2014.

Average sold price for those July 2014 was $1,662,385 – and average time on market for those sold homes was 87 days.

84 Newport Beach homes sold during same time last year – first 29 days of July 2013. Average sold price was $1,525,065 – and average time on market for those sold homes was 74 days.

So Newport Beach average home selling prices are up almost 9 percent during this time in July 2014 as compared with the same time last year in July 2013.

Newport Beach now has 366 homes listed for sale on the multiple listing service – with average list price of $2,869,000.

See Newport Beach homes for sale listings

See Balboa Island listings

See Balboa Peninsula listings

See Baycrest listings

See Big Canyon listings

See Eastbluff listings

See Harbor View Homes listings

See Lido Island listings

See Newport Heights listings

 

We here to help you evaluate the market in your area and price your home to sell.

Coldwell Banker residential brokerage

By Harrison K. Long. This is information from CRMLS multiple listing service and is for homes sold by all brokers and agents.

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

Contact us at 949-854-7747 with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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What Orange County Home Selling Emerged First Half 2014

Orange County CA home selling trends changed drastically during first half of 2014 – as compared with first half of 2013.

Orange County no longer has the crushing buyer demand as presented during first part of last year 2013.

Inventory number of homes for sale has been up since middle of 2013, and over-pricing by home sellers no longer gets them good results.

Buyers have more opportunities and are now looking again to pay fair market value.

First half of 2014 brought on a seriously increased number of homes for sale inventory – which at Orange County is now 7,550 (40 percent more than last year) and still going up.

Orange County home buyer demand is determined by looking at number of number of new pending sales over the prior month. This is lower this year with current demand about 15 percent less than same time during 2013.

Expected market time – average time it would theoretically take to sell all homes now listed for sale – with an increasing inventory and less demand, is now at about 90 days in Orange County – longer time as compared with past two years.

However, average market time at about 3 monhs still shows a market favoring sellers.

Orange County annual home price appreciation is no longer blistering and has moderated down to 3 to 5% per year.

Home sellers still have some control where they fix up and stage their homes, carefully list price their homes close to fair market value, and be realistic on expectations.

With rise in Orange County home values the past two years, fewer homeowners are underwater, and there are fewer short sales.

It’s clear that buyers have more opportunity now at Orange County and that home sellers need to price their homes close to reality and use fair market value in order to get best results.

Coldwell Banker residential brokerage

Coldwell Banker previews

By Harrison K. Long. Source of some information is Steven Thomas and his Orange County Housing Report. We provide professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

Posted in Home selling strategy, Home selling tips, OC Property News, OC property value guide, Orange County business, Orange County home sales, Orange County home values, Orange County property listings, Orange County property values, Orange County real estate | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on What Orange County Home Selling Emerged First Half 2014

Bluffs Home Remodeled at Newport Beach CA – 325 Vista Suerte

Welcome to 325 Vista Suerte - "The Bluffs" at Newport BeachLive beautifully in this stunning, extensively remodeled and renovated home in the “The Bluffs” at Newport Beach!

Single family attached home with 3 bedrooms and 2 and one-half bathrooms.

Open-concept kitchen, dining and living area.

Gorgeous custom kitchen rebuilt to the studs – white maple shaker cabinets to ceiling, granite counters, designer backsplash, stainless steel appliances including five burner cooktop and Fisher & Paykel dishwasher drawers, and over-the-stove pot filler.

Soaring ceilings and distressed maple hardwood floors.

Expansive views through French sliding doors to rear patio and lush greenbelt.

Romantic master bedroom with vaulted ceiling overlooking greenbelt.

Spectacular completely renovated ensuite master bath including Carrera marble dual vanity, spacious shower with designer tile & hardware, glass surround and dramatic volume ceiling.

Master bath suite …

Impressive secondary baths rebuilt with new vanities, granite counters, custom tile and raised volume ceilings.

New elements include dual pane windows throughout …

New raised panel wood wardrobe doors, leaded glass entry doorway sidelight, fireplace hearth, crown molding, tall baseboards, light and faucet fixtures, fresh paint, garage door & more.

Location on private community greenbelt near the swimming pool area.

325 Vista Suerte – Bluffs Park Homes at Newport Beach

325 Vista Suerte is the home you have been waiting for!

Offered at $977,500 – CRMLS #OC14121035

Home and listing presented by Harrison and Christi Long, Realtors and professional real estate representatives, Coldwell Banker Residential Brokerage, Newport Beach and Orange County CA – CAL BRE 01410855 – Contact listing agents at 949-701-2515.

Coldwell Banker residential brokerage

By Harrison K. Long – We provide Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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Turtle Rock Irvine CA Home Selling Prices at an All-Time High

Turtle Rock Irvine CA Home Selling Prices are at an All-Time High

Turtle Rock continues to be one of the most sought-after community locations for residential living and home buying in Orange County.

Turtle Rock home buyers were hot and busy last year during 2013, and home prices jumped with so few homes available for buyers.

Although home selling pace at Turtle Rock has moderated slightly this year, home selling prices are up more than 20 percent as compared with same time last year.

Turtle Rock has sold 39 homes so far this year through May 29, 2014 – with average sold price of $1,270,046.

Turtle Rock sold 44 homes last year during the same time – with average sold price of $1,054,830.

Home selling prices at Turtle Rock are still jumping even more – with 11 homes sold during the past 30 days (from April 28 to May 29, 2014) – and average home sold price of $1,441,527.

Some of the recent sales at Turtle Rock were homes with views and significant remodels, so prices were especially high.

Even though Turtle Rock Irvine home selling average prices are at an all-time high, this price average, we expect this to moderate somewhat for the remainder of 2014.

Turtle Rock Irvine now has 33 homes listed for sale (including detached single family homes and condominiums) – with average list price of $1,296,557.

Our Turtle Rock Irvine home selling prices and market update shows that we are still a sellers’ market with high home selling prices. However, buyers have more options and listings to consider than last year.

Coldwell Banker residential brokerage

By Harrison K. Long. This is information from CRMLS multiple listing service and is for homes for sale and sold by all agents and brokers.

We provide Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

Turtle Rock Irvine CA Home Selling Prices at an All-Time High

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Orange County Home Buying Demand Continues with Sales Moderating

Orange County Home Buying Demand Continues with Sales Moderating

Demand for housing at Orange County CA continues to be positively impacted by rising employment, growing families and some people qualifying for loans after a prior foreclosure or short sale.

Orange County home selling was hot with buyers last year 2013 – which was inspired by low mortgage rates and not enough homes for sale. Result was high selling prices and short market time.

Orange County home selling has cooled since then and is stabilizing.

3,111 homes were sold last month April 2014 at Orange County – down 6.5 percent as compared with last year April 2013. However, median home selling prices were up 7.7 percent from last year (according to DataQuick).

“Since last summer, the market has been transitioning to a slower pace of sales, somewhat higher inventory and less upward pressure on prices,” said California Association of Realtors Chief Economist Leslie ‍Ap‍‍pleton‍-‍Young. “Generally speaking, there’s less urgency as affordability has become more of an issue.”

Irvine continues to lead the way at Orange County CA and had 261 homes sold last month April 2014 – even though that number of sales was down 34 percent from the sizzling hot market April last year.

Orange County home buyers now see lots of homes for sale and want to pay fair market value – which is determined by recent closed sales. Buyers are willing to wait for the right home at the right price. Homes at OC continue to sell quickly when priced right.

Orange County home selling markets are stabilizing with good mortgage rates for buyers.

If you want to be a home seller at Orange County, you should consider the stabilizing market and that sellers will have more competition than last year.

Pricing your Orange County home correctly based upon recent sales in your neighborhood is a most important consideration. An experienced real estate agent will help you evaluate the market in your area to price your home to sell.

Coldwell Banker residential brokerage

By Harrison K. Long. This is information from the Orange County Register and CRMLS multiple listing service and is for homes sold by all agents and brokers. We provide Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Connect with us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

Orange County Home Buying Demand Continues with Sales Moderating

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California Legislature Considers New Tax on Homeowners – SB 391

California Legislature Considers New Tax on Homeowners – SB 391

The CA state legislature has been considering a new tax that would be imposed on homeowners who need to record certain documents with their counties.

This $75 per document tax will be imposed on a variety of documents, which will include, for example, documents related to refinancing properties, taking properties in and out of trusts, making lot line adjustments, obtaining constructions loans and upon the death of a spouse.

This new tax would also apply to foreclosures (the owner would be responsible, not the lender) and filing mechanics liens.

Example: It is not untypical in a refinance, for six documents to be subject to the new tax, resulting in a tax total of $552. If a spouse dies, up to five documents need to be recorded, creating a total tax of $440 including existing recording fees.

SB 391 is in the Assembly Appropriations Committee.

The CALIFORNIA ASSOCIATION OF REALTORS® is opposing this bill.

Coldwell Banker residential brokerage

By Harrison K. Long. Source of information is the California Association of Realtors.

We offer Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Connect with us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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CA Property Buyers Should Be Advised About Implications of an Earthquake Zone Report

CA Property Buyers Should Be Advised About Implications of an Earthquake Zone Report.
A California court of appeal has ruled that the real estate broker for buyers failed in their obligation to investigate, understand and communicate to buyers the implications of an earthquake zone report.   (Saffie v. Schmeling, filed March 7, 2014, Fourth District, Div. Two, 2014 S.O.S. E055716).

The court found that the buyer’s broker’s advice to client to “check [the report] out” is insufficient to avoid liability.

This case involved the sale of a vacant property in an earthquake zone.  The seller’s broker stated in the MLS “This parcel is in an earthquake study zone but has had a Fault Hazard Investigation completed and has been declared buildable by the investigating licensed geologist. Report available for serious buyers.”  All of which was true.  The problem, however, was that the report was from 1982 and in the interim were the Loma Prieta and Northridge earthquakes; much had changed in the building standards from then to the sale of the property in 2006.

After closing, the buyer found that he could not build. He sued his broker, the seller and the seller’s broker, alleging that omitting the date of the report was a misrepresentation. The trial court found the buyer’s broker liable for breaching the fiduciary duty to the buyer. The seller and the seller’s broker where held not liable.

Buyer appealed only as to the seller’s broker.  Following prior case law, the court found that, while a real estate broker owes their own client a fiduciary duty, they owe third parties who are not their clients only those duties imposed by regulatory statutes.  These duties include honesty, fairness and full disclosure as well as the Civil Code section 1088 responsibility for the truthfulness of statements in the MLS. The court found that the statement was in fact true. There was a report. The geologist did find the parcel buildable.  And the fact that the MLS did not state that the report was from 1982 was cured by the report’s availability, especially so when the report was dated May 20, 1982 on its face.  The court held that the seller’s broker had met the requirements of honesty, fairness, and full disclosure.

The buyer’s broker, however, did not fare so well. The buyer’s broker merely gave the buyer a copy of the report, telling the buyer to “check it out.”  The court states that the buyer’s alleged injury arises from the failure to investigate and understand the implication of the information that the report dated to 1982, a failure that the trial court found was the buyer’s broker’s responsibility, and not from the failure of the seller’s broker to provide information.  Certainly something beyond “check it out” was required of the buyer’s broker. (Saffie v. Schmeling, filed March 7, 2014, Fourth District, Div. Two, 2014 S.O.S. E055716)

 

Coldwell Banker residential brokerage

By Harrison K. Long.  Source of this information is the California Association of Realtors and is for information only – and is not the providing of legal or professional real estate services.  If you are a buyer of a home or residential property in California and have questions or do not understand an earthquake zone report for the property, you should consult with an experienced real estate attorney. 

Property Buyers in CA Should Be Advised About Implications of an Earthquake Zone Report.

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