Nancy Moeller's Blog

I just got off the phone with a first time homebuyer - our favorite type of client to help. When we starting talking about price range, he gave me a number. He explained that he came up with the number by comparing his current expenses renting to what his new expenses would be with mortgage, taxes and insurance.

What a refreshing, yet simple approach! So many people ask their lender how much house they can afford instead of looking at own budget. Imagine the mess we could have avoided if buyers a few years ago took this approach instead of relying on "creative loan programs".

To help our buyers, we created our own "Geek Edition" Rent vs. Own calculator. It's a simple Excel Spreadsheet that takes into consideration tax savings, association dues, PMI, insurance, 1^st and 2^nd mortgages, etc.

If you'd like a copy just shoot me an email at Nancy@TheOCExperts.com ... I'd be happy to share.

Have a great day,

Nancy Moeller, CPA, Broker

Seven Gables Real Estate

714 276-7006

We have a lot of first time homebuyers who are excited about our current market. They are anxious to buy their first home and also dream of buying investment property while prices and interest rates are so low. The problem is coming up with all the money. Investment loans require equity in your principal residence, a higher down payment and higher interest rates. Ouch!

One great strategy is to consider buying a 2 to 4 unit property. Live in one unit and rent out the others. This should qualify you for a owner occupied loan on the entire property - allowing you to get into a personal residence and investment property at the same time for less money!

Here are the quick benefits to buying an "Investment Personal Residence":

1. Lower down paymen
2. Lower interest rate
3. Easier to qualify (compared with personal property + separate investment property)
4. You're close enough to carefully manage the property
5. Later, you can convert the entire property to investment and move to your dream home

As always, location and careful financial planning is everything! Be sure to consult with your CPA and Realtor for the best strategy that matches your investment and personal goals.

As always, you are welcome to call me personally anytime to discuss your unique situation and goals,

Nancy Moeller, CPA, Realtor

Seven Gables Real Estate

714 276-7006

As of January 23, 2009, there are 241 properties on the market in Anaheim Hills. Of these 241 properties, 15 are bank owned and 85 are short sales (subject to lender approval).

Interestingly, 21 bank owned properties went into escrow in the last 30 days. This means that demand for bank owned foreclosures in Anaheim Hills (and most of Orange County) is higher than supply.

To receive a list of the active bank owned properties currently on the market and to receive daily notifications of new bank owned listings, register at www.OCBankDeals.com 

Bank owned properties are priced aggressively and often solicit multiple offers. It's important to carefully research and understand this market.

Nancy Moeller, CPA, Realtor

Seven Gables Real Estate

714 276-7006

ALL PROPERTIES IN ANAHEIM HILLS

Properties On Market: 241         

Email for list to Nancy@TheOCExperts.com (Note the type of properties you are looking for to narrow the list. We will email you daily updates of any properties that meet your requirements)

Average Price = $814,195, Price per SF = $295

Properties Placed in Escrow - Last 30 Days: 50

                Months Supply of Inventory = 4.82 (Seller's Market in Anaheim Hills)

Closed Sales - Last 30 Days: 39

Unconventional Tip  #1:  Don't ignore overpriced listings in your home search

In fact, these may be the best properties in the marketplace. Why? Because no one is looking at them because they are overpriced! This gives our prudent buyers advanced access to properties that are not currently on anyone else's radar. This expands the choices for buyers. In addition, these properties are likely the nicest properties on the market.

Are you saying to pay over market value? Of course not. (You must not know me yet) I would simply base our offer on market value, not listing price. I would provide adjusted comparables and present my buyer's offer with solid facts to support our price. The seller will either say yes, no or counter. If they say "no" ... no big deal.  Later, when they reduce their price, you simply re-present your offer.

This strategy is especially true for bank owned listings. Why compete with more than a dozen other buyers on an underpriced listing that will likely sell for over listing price anyway in a bidding war, when you can be the only offer on an overpriced listing with the opportunity to present your case. Even if they do reject your offer, you'll be the best position to resubmit your offer when they finally do reduce their price .

Bottom line - expand your choices by ignoring listing price. Conduct your search based on neighborhood market values for the size and characteristics of the properties you are most interested in. In any market, a home will sale for approximately 94 - 96% of its final listing price. The key word is "final". The original listing price is irrelevant except for the information it provides about the seller and number of buyers with whom you will be competing.

Call us anytime for more information about our unique buyer representation.

Nancy Moeller, CPA, Broker

Seven Gables Real Estate

714 276-7006

Before you make (or don't make) any decision regarding short sales or foreclosures, read this:

• Yes ... your lender(s) may forgive a portion of your outstanding mortgage

• Yes ... you may be eligible to exclude that mortgage relief from tax

• Yes ... you may be able to exclude any gain from the sale (short sale or foreclosure) of that property from tax

Just remember, the key word is "may"

Now, more than ever, it's critical to consult with your tax and legal advisors before selling, short selling or allowing your home to be foreclosed upon.

In the worst of cases, you could have a 3-directional kick coming your way in the next few years:

1.  The amount of debt your lenders forgive may be taxable (Yes, the IRS make exceptions to HR 3648 - imagine that!)

2. Your lender may still be able to collect the debt they agreed to forgive (Be careful of those recourse loans - they can come back to haunt you!)

3. You may have a taxable gain on the sale of your property (Yes, that's right - short sale or foreclosure and gain. It's an anomaly created when we refinance and don't use the money to improve the property.)

The bottom line is this ... the rules are changing on a daily basis. Be sure to consult with your tax and legal advisors before making (or not making) any decision regarding real estate.

Don't confuse your real estate agent for a CPA or attorney.

Nancy Moeller, CPA, Broker

Seven Gables Real Estate

714 276-7006

I was searching for an investment property for a good friend and client this morning and found several variations of this phrase in the agent remarks "Don't call for availability as your call will not be returned." Yes, this is a direct copy/paste and more mild than many.

While I appreciate the honesty of the comment (because they really don't call back), it is yet another example of why Realtors get a bad wrap. On our listings, we welcome calls for status, availability, etc. It gives us an opportunity to network with Realtors, share positive attributes about the property and encourage stronger offers, especially in multiple-offer situations. And the best part, it takes less than one minute to network, sell our listings and maximize the proceeds for our clients.

Don't get me wrong - I've not complaining about these agents (although I did in an earlier blog so forgive me). I do understand how busy they are and respect that they don't see the value in having even an assistant handle these calls. Bottom line, it makes our job easier because it's makes simple things - like returning calls - an easy way to stand out in the market place.

Nancy Moeller, CPA, Realtor Who Returns Calls

Seven Gables Real Estate

Direct: 714 276-7006