SHOULD I SELL NOW?

There have been many recent stories on television and in the paper talking about how many homes are for sale now, how it is taking longer to sell, and how some sellers are giving concessions to get their homes sold!

Some sellers are considering waiting to sell their homes in belief that the housing market will improve.  Yes, the market is definitely in the buyer’s favor right now but we are in a multi-year trend.  The number of houses for sale had increased each year for four or five years, but for the first time is declining... Many homes on the market are priced at 15-20% below the previous year and we are in a declining market.
 
If you do need to sell you will need to be competitive with others homes on the market for sale, and that includes price, location, style, amenities and condition.  So if you price the house with others that have newer appliances, roof, windows, furnace, flooring, etc then you would also need to have those features to be competitive.
 
As a seller it is tougher, but as a buyer you are more in the driver’s seat.  Though you may not get quite a much for your current home, your next home will also be priced lower than it would be otherwise.  This year was marked by foreclosures and short sales and the market has lost about 20% of value.  While this means that sellers cannot expect as much for their homes as last year, it also means for sellers that are moving up that their future home will not cost as much as they expected. If you’re planning a move to a higher price range, it should actually be in your favor.  Interest rates are still historically low but now predicted to go higher!
 
If you are planning to move in the next 18 months, then you may want to consider moving now to take advantage of the low interest rates and current price reductions.  Remember that taxes are also calculated on the price of the homes so lower prices could work considerably in your favor!

Currently in Orange County inventory is declining and in some neighborhoods and price ranges there are actually very few homes for sale! If your home is in one of these neighborhoods it could be a good time to sell-Not much competition!

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Improvements Pay Back

Some remodeling projects may improve your home without significantly increasing your home's value. Find out which ones pay back. Find a Contractor
Recouping your remodeling investment may be your goal when you sell your house. But when it comes to resale value, all home improvements are not created equal. As a rule, kitchen remodeling projects and bathroom additions almost always
pay back 90 percent or more of their costs. However, finishing a basement usually pays back less than 50 percent. Other improvements fall somewhere in between. 
Consider these payback estimates* for the most typical home improvement projects: 
 
 

Project	Cost	Payback
Add a new heating or air conditioning system	$2,000 to $4,500	100% for heating;  75% for air conditioning
Minor kitchen remodeling	$2,000 to $8,500	94% to 102%
Major kitchen remodeling	$9,000 to $25,000	90%
Add bathroom	$5,000 to $12,000	92%
Add a family room	$30,000	86%
Remodel Bathroom	$8,500	77%
Add a Fireplace	$1,500 - $3,000	75%
Build a Deck	$6,000	73%
Replace Windows	$6,000	68% - 74%
Build a Pool	$10,000 and up	44%
Install or Upgrade Landscaping	$1,500 - $15,000+	30%-60%

*Compiled from several published surveys 
Understanding payback value
Payback value depends heavily on the real estate market and prevailing property values. If the market is slow, expect to
see less payback than you would in a fast market. Also, consider the neighborhood: If you remodel your house to twice 
the size of the other homes on the block, it is unlikely that you will be able to sell at double the price. Issues that can 
influence payback value include: 
Type of improvement:Kitchen and bathroom remodeling projects consistently return the most in resale value and almost always help sell a house. Converting a basement into a family room yields the smallest return on the investment. 
Scope of improvement:Projects can be large or small. Sometimes, the cumulative effect of small projects can pay back more in resale value than that of larger projects. Small projects tend to be cosmetic in nature: fresh paint, new doors, 
garden windows, and ceiling fans. Large improvements involve adding or upgrading living space. 
Desirability: Today's fad may be tomorrow's standard. Backyard decks, for example, were difficult to find 30 years ago; now they are common. Decks may not have paid back very much in resale value decades ago, but as decks have become more desirable, their resale value has increased. 
Cost: The price of home improvements fluctuates depending on economic conditions and region. If remodeling costs are particularly high in your area (or home sale prices particularly low), you may not recoup as much on your investment as
you would if costs were in sync with sales prices. 
TIP: If you are financing your home improvements, the best time to apply for a loan is when interest rates are low. The
less you pay to borrow money, the less the total cost of the renovations.

Property Tax Schedule

The first half of  Propety Taxes are due and payable on November 1st. and become delinquent after December 10th 
 

January	February	March
January 1st Assessment Due Date	February 1st  2nd Installment Property Taxes Due Date	March 1st Taxes on Unsecured Roll Due

 
 

April	June	July
April 10th  -2nd Installment Property Taxes Delinquent Date April 15th Last day to file Homeowner's, Veterans, and Senior Citizen Exemptions	June 1st - Beginning of Fiscal Year to June 20th of the following year	July 1st -Properties with delinquent taxes sake to the state  July 1st - Homeowners to be informed of new values July (First Monday)- Assessment Appeals Board July 30th - Last day to advise Homeowner's of New Values

 

September	October	November
September (mid-month) -Tax Rates Set	October (last week) -Tax bills are mailed	November 1st -First Installment Property Taxes Due

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