If you’re looking to sell your Santa Monica, Brentwood or West Los Angeles home quickly and get top dollar—staging your real estate property effectively can help you get results. That means presenting your home in its best and most appealing light to the majority of home buyers.

Staging your home for sale is not hard or costly and many homeowners find it difficult to see their home objectively after they’ve grown attached to the property.

An easy way to see effectively staged homes is to visit decorated models. Decorating a model is expensive, but builders are willing to invest the cost because they understand just how well a staged home sells. You too can profit from this knowledge.

Below is a great article on some simple steps and helpful tips for staging your Santa Monica, Brentwood, or West Los Angeles home for immediate sale.

Simple Staging Solutions Article

1. Interview two full-time agents just as you would hiring an attorney or physician
2. Do not hire your good friend, relative or neighbor as a favor or out of guilt
3. Do not select an agent based on the price they suggest to list your property
4. Do not hire an agent who is not experienced in the Santa Monica, Brentwood and West LA areas
5. Ask for a list of references with phone numbers or emails
6. Find out how the agent prepares your property for marketing
7. Ask for a detailed marketing and advertising plan
8. Check out the agent’s personal website and visit the agent’s office
9. Compare the agent’s track record including their sales success ratio
10. Find out what staff or team support the agent provides
11. Inquire about the agents pricing strategy
12. Be sure the agent you select has your needs and best interest at heart

If you are considering a sale of your property, and would like a complimentary copy of our “How To Select an Agent” guidelines, please contact Gary Limjap at (310) 586-0339 or by email.

Agency Jumbo Loan Limits ($417,001 – $625,500

Jumbo Loan Limits ($625,501 – $4,000,000

With these historically low rates and declining house prices, the typical Santa Monica, Brentwood and/or West Los Angeles family had more than double the income needed to purchase a median-priced home in January, according to the National Association of Realtors® Housing Affordability Index which registered the highest reading since records began in 1970. In fact, the Corelogic® National Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003. This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases.

For more information contact Gary Limjap at 310-586-0339 or by email.

They’re talking about increasing the up front mortgage insurance premium from 1% to 1.750% of the loan amount on top of the increase for the monthly PMI from 1.15% for loans up to $625,499 to 1.25% and for loans above $625,500 from 1.15% to 1.5%. Buying before the changes are implemented can save your clients a lot of money! Also have your FHA clients re-qualified if they wait to buy based on the increased fees which will offset their debt to income ratios slightly.

For Example:

Current FHA Loan:

$500,000 – Purchase Price
$482,500 – Base FHA Loan Amount (96.5% LTV)
$487,325 – Total FHA Loan Amount w/ UFMIP financed

30 Year Fixed FHA

3.750%
$2,257 Principal and Interest Payment
$467 PMI

Future FHA Loan:

$500,000 – Purchase Price
$482,500 – Base FHA Loan Amount (96.5% LTV)
$490,435 – Total FHA Loan Amount w/ UFMIP financed

30 Year Fixed FHA

3.750%
$2,271 Principal and Interest Payment
$511 PMI

This is more dramatic above $625,500, now is a great time to take advantage of the lower premiums. The changes may be in place sooner then we know.

If you should have any questions please contact Gary Limjap at 310.586.0339.

Original article:

FHA Will increase Cost of Up-Front Premiums
By Lorraine Woellert – Feb 27, 2012

There were 73 homes sold in 2011 with a median home price of $980,000.

This constitutes a 7% increase in sales from the prior year when 68 homes sold. The median home price increased over 7% from $914,000 the previous year.

Sunset Park Condominiums Sales Report

It was another great year for condo sales in 2011 with 30 condos sold which is a 76% increase from the previous year of only 17 condos sold. However, the median price for condos dropped approximately 6.5% in 2011 to $510,000 from $545,000 the previous year.

Lionstone Group, one of the largest owners of creative offices on the Westside, bought the buildings from a limited partnership made up of investors who are in the entertainment industry, brokers said. The deal comes at a time when well-located buildings are selling at a premium but others are languishing.

Technology- and entertainment-industry businesses, which increasingly work together in such enterprises as video games and animated movies, have gravitated to the seaside in the last two decades. Workers in both sectors have shown a desire to avoid the kind of boxy glass and granite office towers favored by most of corporate America.

Instead, owners of such companies frequently set up shop in smaller buildings that once had industrial uses. Although unglamorous on the outside, the buildings tend to have renovated interiors rich in design, often with such features as walnut stairs and European-style kitchens.

One of the properties acquired by Lionstone is at 2415 Michigan Ave. in Bergamot Station, a former railroad yard and manufacturing center. Tenants there include game maker Hooky Interactive Inc. and entertainment support firm Pier 59 Studios West, real estate data provider CoStar Group said.

Other properties acquired by Lionstone are in downtown Santa Monica at 631 Wilshire Blvd., 625 Arizona Ave. and 401 Santa Monica Blvd. Those buildings and the Bergamot Station property were built before the 1950s and have been fully renovated, according to real estate brokerage Industry Partners, which represented the sellers.

The fifth building sold, at 1351 4th St., was built in 1995. Tenants there include radiology provider Image Advantage and farming company Bolthouse Farms.

“Everybody wants to be in Santa Monica,” said commercial property broker Vince Muselli of Muselli Commercial Realtors, who was not involved in the transaction. Its restaurants, shops and ocean breezes are attractive to businesses, he said. “It’s a great place to schmooze and make deals and just feel good about the world.”

Although the coast appeals to many kinds of businesses, tech companies have made such a beeline to the area that Santa Monica and Venice have earned the nickname “Silicon Beach.” Start-ups such as TrueCar Inc. and Riot Games are growing there alongside Internet stalwarts Yahoo Inc. and Google Inc.

“The demand for creative office space from tech, new media and postproduction companies is driving leasing activity on the Westside,” making it one of the tightest office markets in the region, said broker Scott Rigsby of Industry Partners.

Rents in some buildings surpass $5.50 a square foot per month, twice the cost of space in a prominent downtown Los Angeles high-rise.

“Investors will pay a premium for property in Santa Monica and make less of a return on their investment because the foundation of this area is so good that there is a small likelihood investment will head south instead of north for the long term,” broker Muselli said.

The five buildings purchased by Lionstone have a combined total of 165,000 square feet and are about 90% leased.

Other properties owned by Lionstone include Lantana Entertainment Media Campus and Penn Station Studios in Santa Monica and Alameda Media Center in Burbank.

By Roger Vincent, Los Angeles Times
December 13, 2011

Five Santa Monica office buildings sell for $90 million

What is forgiven debt?

A forgiven debt is an amount you owe your lender but have been waived usually as a result of a request backed by a very valid reason. In the case of a short sale, a forgiven debt is the difference between the selling price and the mortgage which the lender or bank has waived because of your valid hardship situation.

What is exclusion of forgiven debt or income?

Ordinarily, debt that has been waived by a lender is considered taxable since it constitutes as an income. If however, a forgiven debt like a waved debt in short sale qualifies for debt relief under the Mortgage Forgiveness Debt Relief Act of 2007, it is ‘excluded’ or not reported on the list of income when filing for the annual income tax after a short sale.

Does the Mortgage Forgiveness Debt Relief Act of 2007 cover all types of forgiven debt?

Not all types of forgiven debt relating to a mortgage qualify for debt relief and not all of the amount of the forgiven debt can be excluded as well. Under the act, only debt used to ‘acquire, construct and improve the principal residence’. The debt is properly termed as qualified principal residence indebtness. This also includes debts used to refinance debt used for the said purposes but should be secured by the principal/primary residence of the homeowner. A homeowner can exclude forgiven debt up to $ 2 million.

Does the Mortgage Forgiveness Debt Relief Act of 2007 cover rental homes?

The act covers for principal homes only; thus, forgiven debt relating to a short sale of rental or vacation homes do not qualify for exclusion. As a homeowner may live in different homes throughout the year, only the home where he or she spends time most is considered a principal home. In preparing income tax after a short sale, the homeowner must submit proof that the said property was his/her principal residence. The principal residence must also be occupied by the homeowner until the short sale was completed. So if a homeowner had moved out of the home when a foreclosure was seen to happen. But then before the foreclosure was enforced he managed to get approved for a short sale, the forgiven debt would not qualify as an exclusion from income tax after a short sale.

How do homeowners know the exact amount of forgiven debt?

The amount of the forgiven debt will come from the lender or bank and will be written on a Form 1099-C Cancellation of Debt. This form includes the creditor’s name and identification number, debtor’s name, amount of debt cancelled interest if included in the debt cancelled; fair market value of said property, and the date the debt was cancelled. If a homeowner does not receive the form by February 2, it should be followed up with the lender in order to appropriately file exclusion from income tax after a short sale. Homeowners should also verify the amount on the form and if any discrepancy is seen, he or she should contact the lender. The amount of short sale deficiency should be at least $600 or more; otherwise, it does not qualify as indebtedness income.

How does a homeowner report the exclusion from income?

After receiving the Form 1099-C Cancellation of Debt from the lender, the homeowner should report the same amount on Form 982-Reduction of Tax attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). The homeowner should check the appropriate box on Part 1 –General Information where circumstances leading to the exclusion are itemized. In the case of a short sale, qualified principal residence indebtedness should be ticked. Additionally, the same amount that appears on the 1099-C Form should be reported on box 2 of Form 982.

Are there any other circumstances a homeowner can claim exclusion if the forgiven debt does not qualify under qualified principal residence indebtedness?

Under Form 982-Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), exclusion from the forgiven or cancelled debt may include those resulting from a bankruptcy, non-recourse loans, insolvency and farm debts.

As a result of the efforts of several of us a few years ago the Fannie and Freddie limit was permanently increased to $625,500, for high cost areas such as Los Angeles and Orange County. We were able to get a temporary increase for high cost areas to $729,750 for FHA, Fannie and Freddie mortgages, but that temporary increase expired September 30, 2011.

I will continue to fight for a permanent increase for Fannie Mae, Freddie Mac and FHA to $729,750 for high cost areas.

The compromise negotiated today is critical to the San Fernando Valley and the greater Los Angeles area. Some purchasers prefer FHA to Fannie and Freddie and some the opposite, but virtually every transaction that would have closed as a Fannie or Freddie loan can now close as an FHA loan. Moreover, it is FHA that allows for a lower down payment, and restoring the $729,750 limit for FHA probably does more to provide a vehicle for all types of home buyers than anything else we could have passed.

- BRAD SHERMAN, Member of Congress

“Bill Would Encourage Foreigners To Buy U.S. Homes.”