Janie Gervasi, Walnut Creek Real Estate Services

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"The difference is in the details"

Housing crisis-A sign that the worst is over....

Fri, 20 May 2011 18:14:36 -0700

Mortgage delinquencies improving. - May. 19, 2011
Source: money.cnn.com

Mortgage delinquencies seem headed in the right direction, down

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"

Happy Mother's Day

Sun, 08 May 2011 08:47:10 -0700

Janie Gervasi
License #: 01166170
email: janie@arrivehome.com
website: www.arrivehome.com
Direct 925-944-6314
Cell 925-348-2250

RE/MAX ACCORD
3390 Mt. Diablo Blvd. Lafayette, CA 94549

Mothers share laughter, tears, joy and disappointments

Because they’re always there when you need them –they hold a special place in our hearts

Wishing all Mothers peace, love and happiness on this celebrated day!

Janie Gervasi

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Housing is Back - article from Fortune magazine

Fri, 08 Apr 2011 14:10:25 -0700

'It's Time to Buy Again,' says Fortune

TIME TO BUY: The cover story in the April edition of Fortune magazine trumpets that "housing is back."

"After four years of plunging home prices, the most attractive asset class in America is housing," proclaims Fortune magazine, one of the world's premier business publications, in its April cover story.

The article, headlined "The Return of Real Estate," explains that several market forces have created a more promising outlook for the industry. An excerpt:

So let's state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

The author, Senior Editor-at-Large Shawn Tully, acknowledges that demand has been extremely weak in recent years, but notes that a "remarkable shift in home affordability" and the cost of owning vs. renting bode well for housing's immediate future.

The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it's now cheaper to pay a mortgage and other major costs than to rent the same house. What's most compelling is that in all of the distressed markets, owning now wins by a wide margin -- a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner.

Some cities, especially those not immersed in foreclosures, will rebound sooner than others, Tully writes, but even the hardest-hit markets have reason for some level of optimism. One big reason: Investors.

"People always want to live in those sunny locales, and their job markets are starting to recover, albeit slowly. In foreclosure markets, the inventory problem is far greater because it includes not just traditional resale homes but millions of distressed properties. Fortunately those houses are now such a screaming deal that investors, including lots of mom-and-pop buyers, are purchasing them at a rapid pace."

The bottom line, Tully concludes, is that it's a great time to buy. His article's final advice for those on the fence:

Beat the crowd.

Eight good reasons to buy a home now!

Fri, 25 Mar 2011 17:00:53 -0700

Before You Buy a Home - Look at Eight Reasons to Buy a Home

By Elizabeth Weintraub, About.com Guide

If you're like most first-time home buyers, you've probably listened to friends', family's and coworkers' advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its

House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home,

mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions

IRS Publication 530 contains

tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon

sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Morgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a

home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"

President of the California Association of Realtors makes a plea to banks to expedite the short sale process...read her Open Letter!

Thu, 10 Mar 2011 18:50:01 -0800

March 10, 2011

An important message from the CALIFORNIA ASSOCIATION OF REALTORS®:

I write on behalf of the CALIFORNIA ASSOCIATION OF REALTORS®, whose 170,000 members continue to witness the devastating consequences the home foreclosure crisis is having on California’s families, neighborhoods, and communities on a daily basis.

The number of families affected by foreclosure is staggering. During the past three years, more than 640,000 Californians have lost their homes. With the number of homeowners who owe more than their home is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.

Tragically, only a fraction of those who face foreclosure will remain in their homes when all is said and done. Those whose incomes and financial circumstances meet strict guidelines may qualify for a loan modification that will reduce their monthly payment to more affordable levels. Yet the federal Home Affordable Modification Program (HAMP) is expected to prevent only 700,000 to 800,000 foreclosures nationwide before it expires at the end of 2012, and the program does little to help those homeowners who are unemployed or otherwise no longer able to meet their financial commitments. Their last hope is to sell their home, which often means convincing their lender or the investor who “owns” the loan (and, in many cases, the holder of a second mortgage lien and the mortgage insurer) to accept a “short sale.”

With a short sale, homeowners with a proven hardship negotiate an agreement to sell their home for less than the balance owed. Although not every homeowner or mortgage is eligible, those who are able to finalize a short sale avoid a foreclosure on their credit record and can move on with their lives. Last year, 20 percent of home sales in our state involved short sales.

Short sales can play an important role in our state’s economic recovery by accelerating the pace of home sales and reducing the inventory of bank-owned homes on the market. There are other benefits as well. Homebuyers who can qualify for a mortgage at today’s low interest rates also are able to purchase a home at below-market prices. Banks get a nonperforming asset off their books and avoid the headaches associated with disposing of assets they don’t want to own in the first place. Neighborhoods have fewer abandoned homes, and local businesses have more customers with money to spend.

Unfortunately, many homeowners are unable to successfully negotiate a short sale. According to a recent survey of 2,150 California REALTORS® who have assisted clients with a short sale, only three out of five transactions closed – even when there was an interested and qualified buyer.

What’s the problem? For one, no two mortgage agreements are the same, so it can be difficult to standardize short sale processes and procedures. Many homeowners have second mortgages, which further complicate matters. Then there’s the challenge of convincing multiple parties to take a financial loss or, in the case of loan servicers, to forego fees they otherwise might earn during the course of the foreclosure process. Poor and slow service by many banks and servicers has only exacerbated the problem. Horror stories abound from potential homebuyers and REALTORS® forced to wait 90 or more days for a response to a purchase offer or being required to fax short sale applications or other paperwork as many as 50 times. These delays discourage potential homebuyers from considering a short sale purchase and undermine the process for those who short sales are intended to benefit – the hundreds of thousands of families facing foreclosure.

Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery. That’s why the California Association of REALTORS® is taking steps to enable more families to arrange a short sale. Recently, we advocated for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program. We’re meeting with major banks, U.S. Treasury officials, government-sponsored entities (including Fannie Mae and Freddie Mac), and others to urge them to standardize processes, comply with federal guidelines, improve communication with other stakeholders and increase staffing with the goal of eliminating service issues. We’ve also offered our members training in every aspect of the short sale process so they can assist their clients.

But we can’t do it alone. That’s why we’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery. It won’t be easy, and some compromises will be required. The important thing is that we need to act today. Our families and our communities can’t wait any longer.

Sincerely,

Beth L. Peerce
President
CALIFORNIA ASSOCIATION OF REALTORS®

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"

http://www.car.org/newsstand/news/openletter/

Thu, 10 Mar 2011 13:51:00 -0800

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"

Don't Worry About What You Can't Control

Mon, 28 Feb 2011 13:58:44 -0800

Don't Worry About What You Can't Control

This is lesson #48 from my book Little Things Matter, 100 Ways to Improve Your Life Today, by W. Todd Smith.

If you are like most people you probably spend more time worrying than you should. Worrying about job security, project deadlines, health, shrinking budgets, rising taxes, the housing market, world poverty, our children's safety, even the weather. Some things we can control, others we clearly cannot. The key to maintaining a positive attitude in life is to know the difference.

I heard years ago that 92 percent of the things people worry about are beyond their control.

If you are troubled about something you can control, like whether you are going to lose your job, then step up your game. Come in early, stay late, offer to work on a weekend, or volunteer to take on additional responsibilities; do anything you can think of to increase your value. If you end up losing your job, you can bet you'll get a better reference.

If you are concerned about your health, exercise regularly, eat a well-balanced diet, and refrain from smoking.

On the other hand, if you find yourself worrying about something like the safety of your son or daughter serving in the military, whether the government is going to raise taxes, or whether the coming storm will deluge you with rain, understand that there's no action you can take to make any impact on these events or circumstances.

You cannot control these things; worrying about them will just cause stress and affect your overall attitude. In the long term, worrying about what you can't control puts your health, happiness, and longevity at risk.

LTM Challenge

Make a list of the things you worry about. Divide that list into two categories:

1. Concerns you can do something about

2. Concerns beyond your control

Beside each of the items you can control, include an action item. For instance, if you worry about the ten pounds you've recently gained, put together a plan to do something about it. If you're concerned about an impending deadline, make a list of all the things required to get the project completed.

Make a commitment to attack everything within your control and be intentional about not worrying about the things you can't. At first, you'll find it hard not to worry about the things you can't control, but if you use self-discipline and refuse to worry about them, it will become easier.

One of the traits of positive people is that they don't worry about things they can't control.

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"

2011 Real Estate Predictions

Sat, 05 Feb 2011 08:27:00 -0800

A New Year in Real Estate: 2011 Predictions

Are you ready for a new year in real estate? The National Association of REALTORS ® is ready and prepared to predict a more positive year in real estate.

Existing-home sales are projected to rise about 8% to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4% in 2012. The median existing-home price could rise 0.6% to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.

“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said.

New-home sales are estimated to rise 24% to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21% to 716,000.

Janie Gervasi

Re/Max Accord

(925) 944-6314 (O)

(925) 348-2250 (C)

License #01166170

"The difference is in the details"