Realtor/Broker- Connie De Groot- Blogging With Updates On Housing

2012-01-23T08:08:00.000-08:00

Homes SOLD in BEVERLY HILLS 90210 in Jan as of Jan 23

24 Homes NOW PENDING in 90210

618 N Beverly Dr., 58 Days On The Market, SOLD At: $ 6,399,000. Originally Listed At: $6,300,000

518 N Linden Dr., 53 Days On The Market, SOLD At: $ 6,000,000. Originally Listed At: $6,500,000

622 N Maple Dr., 60 Days On The Market, SOLD At: $ 4,000,000. Originally Listed At: $5,495,000

12000 Crest Pl., 10 Days On The Market, SOLD At: $ 3,475,000. Originally Listed At: $3,475,000

9124 Janice Pl., 102 Days On The Market, SOLD At: $ 2,700,000. Originally Listed At: $ 3,895,000

9563 Lime Orchard Rd., 9 Days On The Market, SOLD At: $ 1,710,000. Originally Listed At: $1,805,000

1448 N Beverly Dr., 76 Days On The Market, SOLD At: $ 810,000. Originally Listed At: $849,000

Homes SOLD in SANTA MONICA 90402 in Jan as of Jan 23

10 Homes NOW PENDING in 90402

538 Marguierita Ave., 14 Days On The Market, SOLD At: $ 2,700,000. Originally Listed At: $2,595,000

502 18th Street, 49 Days On The Market, SOLD At: $ 2,400,000. Originally Listed At: $2,450,000

1610 San Vicente Blvd., 15 Days On The Market, SOLD At: $ 1,900,000. Originally Listed At: $1,895,000

320 22nd Street, 87 Days On The Market, SOLD At: $ 1,758,800. Originally Listed At: $1,850,000

Homes SOLD in BRENTWOOD in Jan as of Jan 23

11 Homes NOW PENDING in Brentwood

2180 Stratford Circle, 247 Days On The Market, SOLD At: $ 8,495,000. Originally Listed At: $9,500,000

502 18th Street, 49 Days On The Market, SOLD At: $ 2,400,000. Originally Listed At: $2,450,000

701 S Westgate Ave., 31 Days On The Market, SOLD At: $ 2,025,000. Originally Listed At: $2,085,000

641 S Saltair Ave., 7 Days On The Market, SOLD At: $ 2,000,000. Originally Listed At: $2,200,000

232 N Kenter, 27 Days On The Market, SOLD At: $ 1,260,000. Originally Listed At: $1,199,000

Homes SOLD in CHEVIOT in Jan as of Jan 23

2 Homes NOW PENDING in Cheviot Hills

2732 Dunleer Pl., 134 Days On The Market, SOLD At: $ 680,000. Originally Listed At: $ 849,000

If you would like to know more about these homes, let me know.

View Home In Beverly Hills Surrounded by Multimillion Dollar Homes- Offered at $ 1,365,000

2011-09-15T10:53:00.000-07:00

This property will be open on Sunday sept 18th from 2-5 pm! It is located off Benedict Canyon and north of Sunset. Just go on Benedict Canyon past the Beverly Hills Hotel and after about 5 minutes you will see a street on the left called CIELO-go left and drive up looking for my signs since this home is on a private road.

Hip Contemporary in Beverly Hills for under 1 Million Dollars!

2011-09-15T10:30:00.000-07:00

Often, when one purchases a home, they must then spend additional funds and time to remodel and/or make repairs. The good news about this home is that it is completely done and done with quality finishes and design. For more details on this property call or text Connie at Ph 310 913-1184 or visit the property website: www.1585benedictcanyon.com

Great View Home under 1.6 in the Hollywood Hills- IN ESCROW AFTER 12 DAYS!

2011-06-16T16:43:00.000-07:00

TO CONTACT CONNIE: 310 913-1184 OR www.BUYORSELLAHOMEINLOSANGELES.COM

3512 Multiview Drive in the Hollywood Hills with panoramic views of the city and mountains. This property is over 30,000 sq ft features an authentic Buff & Hensman Architectural recently remodeled with large balcony, grassy area, pool house. The pool house has serene canyon views and includes a bath/shower, new refrigerator, cabinetry and floor to ceiling windows. All this is set just minutes from the studios and Beverly Hills yet very private and gated.

To see all the photos: www.MULTIVIEWDRIVE.com

After a few days, an offer was accepted but we are looking for backups!

Offered at: $ 1,599,000

fox news cavuto mar 29 2011

2011-03-30T11:25:00.000-07:00

What’s up with housing? The Case-Schiller Index showed declines in every city in the 20 city index except San Diego and Washington D.C.! San Diego shows only a slight gain in home prices while Washington soars by comparison with an increase of 3.6 % in Jan 2011 from a year earlier. Los Angeles, San Diego and San Francisco have very slight changes but other cities are not doing so well. Why are things so different in Washington D.C.? Connie shares her thoughts and discusses the Case- Schiller Index just released!!

Jan 2011 home prices fall from Jan 2010 but these cities are among the best:
Los Angeles Down 1.8%
San Francisco Down 1.7%
San Diego Up 1 %
Boston Down .06%

Connie De groot speaks with HOST NEIL CAVUTO on FOX BUSINESS

2011-03-10T14:57:00.000-08:00

FOX BUSINESS show "CAVUTO" Hosted by Neil Cavuto
Should the Government eliminate some of the programs the administration organized to help struggling home owners? This is what congress is now deciding as Connie and Neil Cavuto discuss the topic on Fox Business.

Homes that sold in Santa Monica, Beverly Hills and Brentwood in FEBRUARY

2011-03-03T10:34:00.001-08:00

If you are looking to Buy or Sell in these areas or have questions, feel free to call or email.
Connie De Groot
Ph 310 913-1184
Email: conniedegroot.realtor@gmail.com
Website: www.connietherealtor.com

11 Homes SOLD in BEVERLY HILLS 90210 in February

14 Beverly Park, 131 Days On The Market, SOLD At $ 12,999,999. Originally Listed At $ 15,900,000

905 N. Roxbury Dr., 93 Days On The Market, SOLD At $ 6,000,000. Originally Listed At $ 7,200,000

507 N Palm Dr. 26 Days On The Market, SOLD At $ 3,185,000. Originally Listed At $ 3,250,000

1231 Coldwater Cyn Dr. 13 Days On The Market, SOLD At $ 2,095,000. Originally Listed At $ 2,279,000

312 N Oakhurst Dr., 90 Days On The Market, SOLD At $ 2,100,000. Originally Listed At $ 3,150,000

1160 San Ysidro Dr., 15 Days On The Market, SOLD At $ 1,685,000. Originally Listed At $ 1,624,900

9775 Millboro Pl, 101 Days On The Market, SOLD At $ 1,413,000. Originally Listed At $ 1,995,000

3401 Coldwater Cyn Dr., 243 Days On The Market, SOLD At $ 1,300,000. Originally Listed At $ 1,595,000

9301 Lloydcrest Dr., 6 Days On The Market, SOLD At $ 1,257,680. Originally Listed At $ 1,390,000

9401 Cherokee Ln., 94 Days On The Market, SOLD At $ 1,085,000. Originally Listed At $ 1,350,000

9666 Yoakum Dr.. 69 Days On The Market, SOLD At $ 545,175. Originally Listed At $ 512,000

3 Homes SOLD in SANTA MONICA 90402 in February

135 Palisades Ave., 58 Days On The Market, SOLD At $ 5,480,000. Originally Listed At $ 6,950,000

330 10th St., 169 Days On The Market, SOLD At $ 2,825,000. Originally Listed At $ 2,999,000

447 Hillside Ln., 52 Days On The Market, Reduced to $ 1,342,000. Originally Listed At $ 1,485,000

11 Homes SOLD in BRENTWOOD in February

347 S Burlingame Ave., 300 Days On The Market, SOLD At $ 4,250,000. Originally Listed At $ 4,850,000

167 Granville Ave., 135 Days On The Market, SOLD At $ 2,960,500. Originally Listed At $ 3,385,000

864 N Bundy Dr., 49 Days On The Market, SOLD At $ 2,075,000. Originally Listed At $ 2,199,000

2618 Westridge, 27 Days On The Market, SOLD At $ 1,787,935. Originally Listed At $ 1,699,000

1001 S Carmelina Ave., 12 Days On The Market, SOLD At $ 1,275,000. Originally Listed At $ 1,249,000

841 N Kenter Ave., 19 Days On The Market, SOLD At $ 1,260,000. Originally Listed At: $ 1,399,000

503 N Greencraig Rd., 101 Days On The Market, SOLD At $ 1,220,000. Originally Listed At $ 1,549,000

11332 Albata St., 50 Days On The Market, SOLD At $ 1,030,000. Originally Listed At $ 1,089,000

570 N Kenter Ave., 362 Days On The Market, SOLD At $ 971,880. Originally Listed At $ 1,260,000

3506 Mandeville Cyn Dr., 26 Days On The Market, SOLD At $ 849,000. Originally Listed At $ 912,500

11415 Chenault St., 154 Days On The Market, SOLD At $ 879,000. Originally Listed At $ 969,000

_________________________________

Connie on FOX NEWS with Host NEIL CAVUTO to talk about raising downpayme...

2011-01-20T14:24:00.000-08:00

Connie is invited to appear with host Neil Cavuto to discuss a recent idea that has circulating to perhaps require buyers of homes to put down 30 percent on a home purchase. Neil asks Connie's opinion as to how this could affect the housing market. Original Air Date: Jan. 19, 2011.

Connie on FOX BUSINESS show "Cavuto" To Discuss the Housing Market Going...

2010-12-23T13:38:00.000-08:00

Connie discusses on the Fox Business show "CAVUTO" the housing market moving into 2011, if we should consider eliminating the mortgage interest deduction and much more.

SOMEONE IS BUYING! See What Homes Have Sold In Dec In Beverly Hills, Santa Monica & Brentwood

2010-12-13T15:16:00.000-08:00

December is typically the month many home sellers take their listed homes off the market or wait a month or two before placing a home on the market for sale. This often leads to a reduced inventory, a situation that could provide a great opportunity for some home sellers to face little or no competition from other home sellers. The following sales (taken from the MLS) do show that Buyers are out there looking and ready to buy. Check your area to see if there is a shortage of available comparable properties- December or January could be the month for you to list your home.

For more information on these areas or any others in Los Angeles, California- Just Call Connie!

Homes PENDING in BEVERLY HILLS 90210 in Dec as of Dec 12

1010 N Hilcrest Rd, 57 Days On The Market, No Reduction. Originally Listed At $ 15,900,000

1120 El Retiro Way, 173 Days On The Market, Reduced to $ 6,295,000. Originally Listed At $ 6,995,000

524 N Elm Dr., 52 Days On The Market, No Reduction. Originally Listed At $ 3,195,000

3074 Franklin Cyn Dr., 56 Days On The Market, Reduced to $ 1,325,000. Originally Listed At $ 1,351,500

9832 Yoakum, 59 Days On The Market, Reduced to $ 514,950. Originally Listed At $ 549,950

Homes SOLD in BEVERLY HILLS 90210 in Dec as of Dec 12

708 N Rexford Dr., 303 Days On The Market, SOLD At $ 5,410,000. Originally Listed At 7,499,000

806 N Whittier Dr., 141 Days On The Market, SOLD At $ 4,500,000. Originally Listed At 5,990,000

515 N Alpine Dr., 5 Days On The Market, SOLD At $ 3,900,000. Originally Listed At 3,995,000

2578 Hutton Dr., 14 Days On The Market, SOLD At $ 3,650,000. Originally Listed At 3,750,000

9913 Sunset Blvd., 31 Days On The Market, SOLD At $ 3,600,000. Originally Listed At 3,949,000

9543 Cherokee Ln., 200 Days On The Market, SOLD At $ 2,100,000. Originally Listed At 2,250,000

1173 Angelo Dr., 9 Days On The Market, SOLD At $ 1,926,000. Originally Listed At 1,995,000

1157 Angelo Dr., 152 Days On The Market, SOLD At $ 1,360,000. Originally Listed At 1,695,000

1909 Benedict Cyn Dr., 144 Days On The Market, SOLD At $ 1,210,000. Originally Listed At 1,439,000

9698 Yoakum Dr., 8 Days On The Market, SOLD At $ 1,075,000. Originally Listed At 1,150,000

Homes SOLD in SANTA MONICA 90402 in Dec as of Dec 12

606 Adelaide., 4 Days On The Market, SOLD At $ 3,995,000. Originally Listed At 3,395,000

311 11th Street., 180 Days On The Market, SOLD At $ 3,800,000. Originally Listed At 3,999,000

369 23rd Street., 18 Days On The Market, SOLD At $ 3,247,000. Originally Listed At 3,395,000

523 14th Street, 25 Days On The Market, SOLD At $ 3,165,000. Originally Listed At $ 3,195,000

402 19th Street., 3 Days On The Market, SOLD At $ 2,200,000. Originally Listed At 2,300,000

Homes PENDING in BRENTWOOD in Dec as of Dec 12

220 S. Carmelina Ave., 133 Days On The Market, Reduced to $ 3,095,000. Originally Listed At $ 3,395,000

2618 Westridge Rd., 27 Days On The Market, No Reduction. Originally Listed At $ 1,699,000

Homes SOLD in BRENTWOOD in Dec as of Dec 12

12759 Chalon Rd., 16 Days On The Market, SOLD At $ 14,200,000. Originally Listed At 13,400,000

319 N Bowling Green Way, 30 Days On The Market, SOLD At $ 2,350,000. Originally Listed At $ 3,400,000

3038 Corda Drive., 14 Days On The Market, SOLD At $ 1,270,750. Originally Listed At $ 1,300,000

552 N Greencraid Rd., 10 Days On The Market, SOLD At $ 1,260,000. Originally Listed At $ 1,495,000

1135 N Norman Pl., 13 Days On The Market, SOLD At $ 975,000. Originally Listed At $ 890,000

__________________________________

Connie De Groot on Fox Business discussing sales of High-End Homes in Ca...

2010-11-04T17:51:00.000-07:00

CAN'T SELL YOUR HOME? READ THIS!

2010-10-05T07:30:00.000-07:00

Well you must be very frustrated. You are not alone! This market is challenging to even the most experienced Seller but by going BACK TO BASICS you will be on the right road to accomplishing your goals.

Here are a few tips to get started:

1. Buying a home is an EMOTIONAL PURCHASE for most. Above all, your home must cause a buyer to become so attached that they ignore all the bad housing news, the joblessness and fears of such a large financial obligation. And Buyers start deciding if your home will work at your curb! Stand at your curb and be honest with yourself, does your home look impressive or well maintained? Next, walk inside and go into every room and ask yourself if EVERY room has a VALUE a buyer will recognize and does each space have a "good feeling?” If the answer is no, you will need to get to work. This market requires EVERY SELLER to do their best or buyers will make low offers or worse, no offer. There are ways to make your home more attractive without spending much. Just call me for a consultation.

2. When a buyer walks into your home, can they see themselves having dinner, relaxing by the fireplace with family, celebrating holidays? If all they see is your decor, your religion, your hobbies they will have trouble getting past you. The buyer may not become attached and most probably, will not offer to purchase your home. The smallest thing can sell a house. A warm cozy area with a fireplace, unique hardware on doors, a front door, lots of pots with flowers, it’s endless. EMOTION is the key to an OFFER..

3. Show all the best aspects of your home when a buyer tours your home. Turn those fireplaces ON, even in the summer. Have pleasant smells, nice temperatures, appeal to all senses and be creative. The Seller should NEVER EVER be in the home at the time the buyer is there. No one wants to buy a home they feel uncomfortable inside- need I say more?

4. Small rooms often become forgotten. When a buyer makes an offer they will give value (dollars) to what they remember and recognize as valuable. Therefore, give a use to every room and area to get more $$$$. Small yards are a big reason people will not purchase a home so don’t make the mistake of doing nothing with your outdoors. Put nice furniture outside (borrow if you must). This will get the buyer to imagine entertaining outside because it took this small yard that had little use or value to the buyer and turned it into a charming outdor living space that has a valuable use to most buyers. This one change made something negative (a small backyard) into a positive!

If you are thinking of selling in Los Angeles, I would be happy to help you prepare your home to GET YOUR HOME SOLD.

Just Call Connie

Written By: Connie De Groot

Connie on Fox Business "Willis Report" part of a panel aug 4, 2010.mov

2010-08-05T16:18:00.000-07:00

Connie Discusses Hot Topic- Banks Discriminating Against Expecting Parents?

2010-07-30T16:49:00.000-07:00

Connie De Groot speaks about the problem some expecting families are having when trying to obtain a home loan.

Why Work With Connie De Groot- Read Testimonials

2010-06-27T09:58:00.001-07:00

Richard Arroyo, Beverly Hills, California

"Connie, once again, you were right and I sho
uld have listened to you. You have great instincts and insights into the Southern California RE market. I should have taken your advice on when to sell."

Barry Bijan Todd, Experienced Home Seller, Beverly Hills, California

"Connie Degroot was the only one who could make it happen. She sold a house of ours others struggled with. I would use Connie again without a second thought. She is hard working, enthusiastic, reliable, knowledgeable, and persistent. Connie tackles situations and transactions professionally. I would recommend her- we always felt like we were in good hands. When she told us to re-stage the property, to move this, to move that, and to re-dress the house up we did it--and she was right. We trusted her to do her best and she did. Connie sold our home after it had been on the market for a long time."

Julie Tseng, First-Time Home Buyer, Beverly Hills, California

"I have had the pleasure of knowing Connie for the last 4 months as my Beverly Hills real estate agent/licensed broker and more importantly as my personal trusted advisor. As a first time home buyer, Connie helps to demystify the current real estate market from start to finish. Her commitment to client service is impeccable. When I leave her a voice message, she responds within a timely manner. When there is a property that I am interested in, she is able to get us an appointment within 24 hours. When I am unable to see a property, Connie previews it for me. As a client of Connie, she takes the time to understand my current and future housing needs and to listen to my concerns, hopes, desires and constraints. Connie is extremely knowledgeable about the trends of the real estate market as well as the most sought after desirable locations in Los Angeles. She is forward looking and has a desire to make sure that I am not only satisfied with the purchase but also to consider future implications of a property should there be a need to sell in any economic climate. She encourages me to contribute ideas and fosters an open exchange of ideas and opinions. And her website and blogs provide invaluable information from the current housing market to available federal and state housing tax credits. As a trusted advisor, Connie helps me assess my long term home buying goals and gives me balanced and constructive feedback such as taking into consideration all the alternatives when making a purchase (i.e. location, schools, resale value) if only to avoid me falling into pitfalls other buyers may have encountered. Most importantly, she is honest about her comments on various properties we have looked at. These are qualities that make for a lasting relationship. All said I am glad and privileged to have had such a person cross my path, and to take an active interest in helping me weave through the volumes and volumes of real estate data. Thank you Connie for all your help. I highly recommend Connie De Groot to potential home buyers both new and veterans."

James Eder, Out-Of-State Home Buyer

"As an out of town buyer, a diligent, hard-working, loyal, and savvy real estate professional with integrity was what I was looking for. I found that person in Connie De Groot. Connie worked tirelessly before my making an offer to find the right property at the right price, during the offer period to ensure the best deal, and after closing in helping with improvements, remodeling, and re-decorating. I was always informed with real-time information and any questions were always handled quickly and effectively by Connie and her excellent assistant Sally. Her expertise in understanding the value of the marketplace and her contacts in the refurbishment market proved invaluable. This expertise allowed me to purchase a home that I otherwise would not been able to given my time constraints. Her integrity and knowledge allowed me to feel confident every step of the way."

David & Rebecca Smith, North Fork, Idaho- Referral Client

"After having our house on the market for a year with not even one showing, we new we needed a big-gun with global exposure to help move it. After seeing Connie on the Fine Living Network, we knew if anyone could help us, it was her. Her no-nonsense, straight-shooting, put the client first philosophy drew us in. But then we thought, "why would this Beverly Hills big-shot want to help us"? Nevertheless, we called and that question never got asked. Connie was congenial and highly-motivated from the first call and assured us, even though our property was over 1200 miles away, that she would find us an agent to help sell it. And that, she did. Connie found us an agent, and equipped us with the tools to help move our property right away, even 1200 miles away. If you think distance is a problem, think again......nothing stops Connie!!"

Anthony and Julee Choe, First-Time Home Buyers

"Thank you so much for helping us to find our dream home. It fit everything we were looking for in the BHPO: school district, location, design and architecture, and at a fair price. Thanks so much for fighting hard for two first time home buyers like Julee and me - your walking us through the process step-by-step was so comforting and so critical to the successful outcome. Now that we're in the home, we are so happy, it seems like many of our old problems have melted away! We're still not completely furnished yet, but when we do, we'd love to have you over for drinks sometime in the summer when the landscaping is complete. We hope you're still the neighborhood expert the next time we're looking to move... there's nobody we'd rather use and nobody we trust more than you Connie."

Christine Huang, First-Time Buyer That Went Through Several Agents, Los Angeles, CA

"As a first-time home buyer, I had lots of questions and concerns and went through two or three other agents with multiple failed negotiations before I found Connie. Connie is committed from start to finish. She strives to understand her clients, their needs and wants. She finds immediate listings and schedules appointments without delay. She gives honest guidance and advice, which was invaluable to me. Connie is well-informed, hardworking, responsive, energetic and sharp. Her professionalism and effectiveness was highly appreciated. I recommend Connie without reservations. In fact, I have already referred her to my family and friends.Connie, thank you for making it FINALLY happen! I feel fortunate to have been able to work with you as my agent and am looking forward to keeping a long-term friendship."

Paul Owen, San Diego Realtor Connie Gave Some Helpful Tips

"Thanks Connie! After sticking with it and not judging a book by its cover I was able to close a great deal. The client was turned down by several agents and through a friend I ended up with the lead. Thanks for taking the time last year to help me when other agents wouldn't. I appreciate your insight and direction!"

Ron and Joan Hoffman, Home Sellers Needing To Do Construction To Sell

"Connie, previous to you representing us, we had two other real estate agents who were unsuccessful at delivering us a qualified buyer at the price we felt our home warranted and deserved. We had our house on the market for over one year without any viable potential buyers. When we first met you and reviewed the frustrations and challenges of selling our home, you outlined for us the steps you felt were necessary to make our home more marketable. We were impressed by your hard work, dedication and high-energy in doing everything possible to attract the right buyers. We are now in escrow and we are happy to say that we couldn't have done it without all of your hard work and persistence."

Evan & Lee Morrison, Queensland, Australia

"I live in Queensland, Australia and I have just seen a program on the t.v. about you selling houses for people etc. I must say that I was most impressed with the way you handle everything and all the tips that you provided.
We do have Coldwell Banker real estate here as well. I will continue to find t.v. shows where you give tips about selling etc, as I have already picked up many things from you. Thank you."

Jack B. Scott Jr.

"Yes Connie! I love seeing you on TV. You do a great job and I love your passion and expertise. Just saw you on Fox Business and have seen you on Happy Hour. When you are on, it's really a Happy hour! Be blessed."

James Poole, Versoix, Switzerland
Senior Investment Consultant-Blackden Financial S.A.

"Hi Connie, I am dropping you a line as I watched your 'spot' on Fox business, relating to property in the US, more specifically in southern California.
Although we don't have specific enquiries from clients for this area of the world, I found it enlightening from a financial planning perspective. Property all over the world and more directly in Europe is suffering from a price collapse in much the same way as the US, due to the globalised nature of banks these days. When do you see the lending situation freeing up in the US nad will this, in your view, have a knock on effect in Europe? By the way great sunny delivery and you have the most enchanting appearance, hope you don't mind me saying that!!"

David Spellerberg commenting on the FOX Internet Show "The Strategy Room" where Connie was interviewed by former LA District Attorney, Kimberly Guilfoyle:

"Connie, you are the perfect combination. Very sharp, knowledge, articulate and of course very beautiful. As you said, the key is hard work and LISTENING to what your client says to you. You can never listen to much. Congratulations on a great interview."

Roberto Magalhaes commenting on appearance regarding the new housing plan to help borrowers:

"In a free market, everyone and anyone needs to stand to lose-
accountability is key. It would be great if Fox had you on additional panels !!!"

Susan Kong, Miami, Florida

"I've seen you in "Real Estate Confidential" and I love your style! I wish you could sell my house but I live in Miami. If my realtors were anything like you, I probably have sold my house already. I love your style and impressed with how you approach your clients. Thank you."

R. Jones, Memphis Tennessee

"Connie, Saw you on Neil Cavuto yesterday. You mentioned that buyers were leery of making low offers on houses that were priced a little high in this market. My wife and I are one of those couples. We've seen some houses we love, but they seem like their starting price is too high...We found a nice home that fits our requirements for ......, but thought it would be very insulting to offer ...... It's in an area with many other houses to choose from, but this one was a move-in ready. Any suggestions?"

Meryl Weprin, Dayton, Ohio

"Hi Connie, my husband and I watched your show on a Delta flight last week and we thought you could possibly help us. We were impressed by your honesty and evaluation of the house you eventually sold on the segment we saw in the air. Thank you."

Bill Yarber

(YOUR WORLD WITH NEIL CAVUTO- July 27, 2009)"Just saw you on FOX during your interview with Neil Cavuto. You prove that beauty and brains do mix very nicely. You are quite beautiful, look like a model and obviously know your market and industry. Quite refreshing. My cousins in the ........area used to have a real estate business, but none of them look like you. Shame."

Mark Hanlin

"Connie, from the brief clip of you that I saw tonight, I have to say I was impressed--you presented your position well, with authority and expertise (not everyone can keep up with Hannity). My thoughts...gosh, where do I begin??
At the risk of sounding like a right-wing whacko, I must admit I'm concerned with the direction our country is taking, fiscally, politically, socially. And coming from 20+ yrs in the military, throw national security into that mix! I definitely think TARP was a BAD idea, and I'm supremely disappointed in the previous administration for setting us down that path. I've noticed over the past 10 or so years that I've become something of a news junkie, and now wish I'd paid more attention in Poli Sci class...! I will be very interested to see what happens in the next several years." (Responding to appearance on "Hannity")

Jim Morris

"Connie, I just saw you on Hannity and wanted to send you a message. Right on target with your outlook on the economy and housing. Absolutely stunning also."

Steven Gray, Certified Appraiser

"Thank you Connie for stating home sellers should get an appraisal as part of the pre-listing process. I'm a certified appraiser and I'm flabbergasted by the number of home owners that continue to think their house is worth what it was in 2005/2006. (regarding Fox Business appearance Mar 27, 2009)"

Jonathan J. Miller, CRP
President/CEO, MILLER SAMUEL INC. Real Estate Appraisers & Consultants

"Connie, I enjoyed being on the segment with you this evening and I thought you were great. Best, Jonathan" (regarding Fox Business appearance Mar 27, 2009)

Ralph Y. Liu, Chairman & CEO Advanced e-Financial Technologies, Inc.
Corona, CA

"I heard of your capital gain suspension plan on Fox TV this afternoon. I like that idea. What we need now is a free market based incentive, not a bailout, in order to fix our current financial crisis. I would like to share with you a timely innovative economic policy proposal which is 100% based on free market principles that I have been working on to help solve our current financial crisis and seek your kind feedback. Maybe together with the capital gain tax suspension it will really help turn our economy around."

Dan Krieger, Florida

"Hi Connie, I enjoyed listening to your interview. I'm a realtor and mortgage broker in Florida. Not only did I find you intelligent and polished but beautiful as well. Wishing you a Happy New Year!"

U.S. Pending Home Sales Rise by 5.3% in March 2010

2010-05-04T10:09:00.000-07:00

Taken from: WASHINGTON (MarketWatch) -- Supported by a tax credit, the pending home sales index rose a seasonally adjusted 5.3% in March, and was up 21.1% compared with a year earlier, the National Association of Realtors said Tuesday. In February, the index rose 8.3%, compared with an earlier estimate of an 8.2% gain. For March sales contracts rose 12.7% in the South, 1.9% in the West and 1.2% in the Midwest. Contracts declined 3.3% in the Northeast.

The Tax Credit is now gone and housing may slow but in time natural forces will start moving the market forward. Lawrence Yun of the NAR expects things to pick up second half of 2010. The housing market will indeed need time to recover and the recovery will be tied closely to jobs, the deficit, taxes and productivity in the U.S.

Thoughts on owning a home and investing in Real Estate:

1. The lesson to take from the housing collapse is not that real estate or home ownership is a bad investment but that buying and selling real estate should be taken seriously and should be done with knowledge and with preparation for long-term ownership.
2. It is a long-term investment that for many, over the long-term, has provided a wealth or higher standard of living they could not have achieved by working in their field.
3. Putting money in the bank as Warren Buffet stated, "is a poor investment". Some day inflation will return and real estate prices will go up- equity will be earned and those homeowners can then take that equity and invest it or use it to MOVE UP to a bigger home or one in a better location.
4. You need a place to live so this investment offers something most other investments do not offer- no matter what happens in the market, that property will still exist.
5. The majority of homeowners with a loan WERE RESPONSIBLE and needed no assistance.
6. If regulations better limit borrowers perhaps this will never happen again... if not.... we will see something like this down the road.

Tax Credit for Home Buyers Expires TODAY

2010-04-30T07:31:00.000-07:00

Yesterday I spoke with Neil Cavuto on the Fox Business show "CAVUTO" about the expiration of the tax credit. I went on the record saying that the tax credit was necessary to get buyers off the fence at a time there was so much fear in the marketplace. The tax credit targeted low-end housing (where the most distressed appeared) and first-time home buyers. At one point 50 percent of the buyers were first-time buyers so this tax credit worked. Latest reports now show that investors were responsible for 19 percent of the transactions in March. Most of these investors are not motivated by the tax credit or interest rates since a large number purchase with all cash. I stressed that it is the price that has brought investors back into the marketplace: therefore, we do not to give a tax credit when buyers are now buying in all price ranges because of attractive prices that exist today.

Consumer confidence is also much higher-in April it measured at 57.9 percent. February pending home sales are up and the number of homes sold nationally have been up year over year for the last 9 months. New home sales were up in March (and beat estimates) and the stock market has come back giving many the feeling of being wealthier than a year ago. This also could be one reason housing has shown strength.

Warren Buffet said the he does not agree that "cash is king" as he thinks cash is a poor investment. So if investing is the smart thing to do then buying real estate at a time when rates and prices are low is the way many people are moving. Almost anyone can understand how to buy and sell homes but investing the same amount in stocks is something most would need a far greater amount of knowledge and time to properly manage long-term.

Connie Appeared on Fox Business to Discuss New Housing Plan

2010-03-29T12:37:00.001-07:00

Connie appeared with David Asman to discuss this new plan to help keep more people in their homes and if it is fair. To see the clip just click on this link:

http://video.foxbusiness.com/v/4125819/real-estate-expert-home-ownership-not-a-right-?playlist_id=87185

Here are a few comments from that appearance.

Mark Whittington commenting on administrations new idea for housing.
"Horrible, all they are doing is delaying a real recovery at an huge cost.
Obama said it won't cost anything cuz they are using TARP money. Where the hell does he think that's coming from, the tooth fairy?"

Roberto Magalhaes commenting on appearance regarding the new housing plan to help borrowers: "In a free market, everyone and anyone needs to stand to lose-
accountability is key. It would be great if Fox had you on additional panels !!!"

Administration Pressured To Give People Good News- Can They Help Housing Recover Faster?

2010-03-10T09:55:00.000-08:00

The Administration is probably under a lot of pressure to help housing since so many have been affected by it. The tax credits were easy to apply and did help. Extending the tax credit and expanding it was a good idea but this new idea to possibly require lenders to modify is a scary scenario that could backfire as lenders may then raise fees to cover their risk. I do think that offerring an incentive to servicers of loans is a good idea and especially for the servicer of the second loan since they have often been the problem. Nevertheless, the idea to offer homeowners tax payer money to relocate when they defaulted on a loan is wrong in the short-term and even worse in the long-term. Should government be the parent? Will the government take care of those struggling to pay car loans, credit cards? Where will it end and how is this good for the country? Do we want to make it easier for people to depend on the government? I thought this Country put faith in the people.

Here's what is happening in Real Estate Today:

The housing market needs time to recover and the recovery most likely will be slow and will depend on how quickly jobs are created. There is no quick fix.

1. Commercial Real Estate is a problem that lenders are currently trying to work out with borrowers. There are many properties going back to the lenders while there are terrific opportunities for> qualified investors to pick up these properties at about half what it may have been 2 years ago! There are plenty of investors ready to buy distressed commercial properties.

2. Residential is picking up due to lower prices and tax credits that pushed the low-end home buyers initially and now with Sellers lowering their prices in all markets, more traditional sales are occuring and>> more higherd homes are moving. There is still a problem getting bigger loans (jumbos) and this has shut out many buyers.

3. Today buyer's expect a DEAL. If your property is priced too high, it may be ignored by buyers today.

4. Many buyers wasted a lot of time and money chasing distressed sales>> and lost to other buyers or wasted a lot of their time and money chasing short-sales. If a short-sale was placed on the market without approval from the lender then it could take months or in my case, 5 months, before approval. Many buyers can't wait that long and after waiting there is no guarantee it will be approved so the buyer may have to> start looking all over again.

Will Washington Extend The Tax Credit For Buyers past April 30th?

2010-02-22T12:12:00.000-08:00

Taken from the Wall Street Journal-online

The National Association of Realtors and other industry groups are beginning to make the rounds on Capitol Hill to press their case, which goes something like this: We know you’ve extended the tax credit two times already, but the housing market is still fragile, the tax credit is working, and don’t forget– you’re up for re-election soon. In other words, do you really want to own the next leg down in home prices?
They’ll also make their case by reminding pols that a series of other market supports are being removed, the largest of which is the Federal Reserve’s purchases of $1.25 trillion in mortgage-backed securities that expires next month and has pushed mortgage rates to postwar lows for much of the past year. The Federal Housing Administration is also under pressure to pull back its lending, and more foreclosures could add to the housing inventory as borrowers fail to qualify for modifications.

Industry groups are also pushing the argument that the credit should be extended because it’s taking so long for banks to approve short sales, where lenders agree to a sale for less than the value of the mortgage.
To recap, Congress first passed a $7,500 tax credit in 2008 for first-time buyers, but that credit had to be repaid over 15 years. When it expired one year ago, Congress extended it, expanded it to $8,000, and said it wouldn’t have to be paid back. Just before that credit was to expire last December, Congress extended it again, until April 30 (sales contracts signed by April 30 have until June 30 to close). A new credit of $6,500 was created for current home-buyers. “There’s nothing more permanent in Washington than a temporary tax credit,” jokes Howard Glaser, a housing-industry consultant.

This time, the lobbyists certainly have their work cut out for them. For one, industry groups last time swore that the last tax credit extension would be, well, the last extension. To secure the deal, the lawmaker who shepherded that effort through Congress, Sen. Johnny Isakson (R., Ga.), made clear at the time that extending it again would be a nonstarter. (His spokeswoman says that he has no plans to offer any legislation extending the credit. “Part of the benefit of the tax credit is the urgency of it sunsetting,” said spokeswoman Sheridan Watson.) Economists mostly agree that the tax credit has helped to goose demand and sell more homes, though there’s still considerable debate over just how many homes would have sold anyway.

Mark Zandi, chief economist at Moody’s Economy.com, pushed to extend the tax credit last fall but says now it’s time to let it expire. “It’s worn out its benefit,” he says. “If you extend it again, it isn’t going to do much, and what you’re doing is providing a tax break to folks who bought anyway.”

SELLING YOUR HOME IN 2010

2010-02-16T11:00:00.000-08:00

Connie De Groot, a licensed Realtor and Broker in Los Angeles:

Dear Home Seller,

The 2 largest challenges I face selling homes today are finding a Buyer that has confidence to buy in these uncertain times and one who can also obtain a loan with today's higher lending standards.

Here are some helpful tips, that if you follow all of them, you will have an advantage Selling in today’s market.

1. Studies have shown that most buyers make up their minds within minutes of seeing a property. The first impression is often made at curbside and the remaining time is spent justifying that first impression. Give your home a good first impression and here's how to do it:
Have the Seller drive by all comparable homes in the neighborhood and take notes on each home. Finally, have them stand in front of their home and have them compare their home to all the others based on the notes taken. I have found that the Seller does see what needs can be done to give their home an edge. Improvements can be as simple as nice pots with small bushes or flowers at the door, replacing dying lawn with fresh grass, painting trims, a new front door.....the trick is to make it fun and for the Seller to see it as a "race" where the best Seller wins!

2. It is so hard to get an offer today that it is sad when escrows fall apart because a home didn't appraise out or because there were too many issues that came up in the inspection. Sellers need to know their home better than a buyer and before they receive an offer from a buyer. Get an appraisal so that you are reasonably sure of your home's value and get a home inspection and fix those small issues because many buyers do not understand what are big costly issues and what are very minor. You want the buyer to know they are buying a well cared for home.

3. Buyer's decide on price because of the value they conclude. Since home buyers are often swayed by FEELING, if you have fireplaces, nice lighting, water features, anything that adds to the look and overall feeling of the home, PLEASE HAVE IT ON AND WORKING WHEN THE BUYER ARRIVES. I don't care if it is summer, turn that fireplace ON! The buyer will start to think how cozy it will be in the winter to sit in that room next to the fireplace or how lovely a room will be to entertain. You must give buyers the COMPLETE HOME EXPERIENCE.

4. Size, number of rooms and use of rooms are all things that add up to VALUE in the buyer's mind and to a higher offer for YOU. Small rooms should never be left empty since they look smaller and are often forgotten by most buyers when they are writing an offer to purchase. You should always fill those small spaces by putting a bed or giving it a MEMORABLE USE so that room is taken into consideration by the buyer and considered in their assessment of your home's overall value.

5. This point has been spoken of often but still many Sellers do not fully understand: "Take YOU out of the home so that the buyer can see himself/herself living there". So take some of the photos down or anything that can distract the buyer from the great features your home has to offer a buyer.

6. Many times. when people move, they think about buying new furniture for their new home. If you are one of those Sellers, do not let the buyer know you will leave couches, TV's, etc. wait until their is a problem in the deal such as an agreement in the purchase price, a renegotiation after the inspection or if the buyer is feeling less confident they have a "GOOD DEAL". If you are at such a critical point, offering those items then will give that buyer a good feeling they got more and it will not cost you anything since you might have been planning to donate those items anyway!

7. A point often discussed by many real estate professions is to keep your decor in neutral tones. The reason this advice is very good advice is because you want to appeal to the greatest number of people. Try it, it really works!

8. As a child I use to go with my father to open houses and just loved to look at the model homes because everything was decorated so nicely. If you are near any model homes, I strongly suggest going to look at their choice of color & design and ask yourself the question, "Why do I feel so good in this space" . The answer is what you need to apply to your own home! Besides, you will also get some great decorating tips!

Good luck out there!!Connie De GrootRealtor/Broker

HAPPY NEW YEAR ! HERE IS YOUR 90210 MARKET UPDATE

2010-01-08T17:06:00.001-08:00

Hope everyone enjoyed the holidays! Welcome to 2010 and a new year of opportunity! I just wanted to let you know that, although the year is just days old, some homes have already closed escrow!

Homes that SOLD/CLOSED in BEVERLY HILLS 90210 JAN 1- JAN 8
BHPO 2654 Eden Pl., 211 Days On The Market, SOLD At $ 3,100,000, Listed At $ 3,995,000
1704 Ambassador Ave, 55 Days On The Market, SOLD At $ 2,450,000, Listed At $ 2,799,000
616 N Linden Dr., 82 Days On The Market, SOLD At $ 100, Listed At $ 3,499,999

Homes currently PENDING in BEVERLY HILLS 90210 as of Jan 8
9770 Glenside Pl., 433 Days On The Market, Reduced to: 2,995,000, Originally Listed At $ 4,995,000

Looking to sell in this new year.... call Connie!
_________________________________________________________

2009-12-29T11:56:00.000-08:00

E-mail - Twitter - Skype - Comment - Watch - Interact

CONNIE DE GROOT on FOXBusiness.com LIVE
Speaking about the Case-Schiller Index on Housing release today.

Click Link to view: http://video.foxbusiness.com/v/3955066/rebound-or-rut-2010-housing-market/?playlist_id=87185!

Guests for Today Include:

1. Connie De Groot, Los Angeles Realtor and Broker
2. Mark Bronzo , Growth Equity Investment Manager at Security Global Investors
3. Peter Cane, Publisher of Boxoffice.com
4. Matt McCall, President of Penn Financial Group
5. Rick Newman, Chief Business Correspondent at U.S. News & World Report
6. Sean O’Neill, Editor at Budget Travel

JOIN THE CONVERSATIONE-mail us FBNlive@foxbusiness.com or follow us on http://twitter.com/fbnlive

Homes Pending & Sold in 90210 From Nov 1 - 9 !!!

2009-11-09T16:13:00.000-08:00

Hello Neighbor,

If you want to see what homes have gone pending, closed escrow and at what price in 90210, just keep checking my website http://www.conniedegroot.com/ and click on IN THE NEWS. I update it every Monday just for you!

Buyers are still out there buying but success requires specialized marketing and a pricing strategy. If you are selling, pricing your home low may not be the way to get the best results. My clients at 1241 Beverly View are one of those successful stories having received multiple offers and the interest continues although we are in now in escrow.

Want to know more? Just give me a call.

_____________________________________________________

1241 Beverly View Drive- NOW IN ESCROW!!!

A beautifully remodeled approx 3000 sq ft One-Story Spanish home with serene views of the city of Beverly Hills, located on quiet cul-de-sac and with traditional spanish accents throughout. This home features 4 Bdrms plus a Maids, a Large Pool, a Living room with a pitched roof & views of city, a luxurious Master Bath and so much more! Most of the rooms open to the pool or have city views and it is just 5 minutes from the center of Beverly Hills and the Beverly Hills Hotel for convenience. For more details call Connie De Groot, Licensed Realtor/Broker in Beverly Hills at Ph 310 913.1184!
______________________________________________________

Homes PENDING in BEVERLY HILLS 90210 - Nov 1- Nov 9

1720 Carla Ridge, Beverly Hills, Listed At $ 4,950,000
BHPO 13377 Java Drive, Beverly Hills, Listed At $ 4,650,000
BHPO 2027 N Beverly Drive, Listed At $1,646,000

Homes SOLD in BEVERLY HILLS 90210 - Nov 1- Nov 9

624 N Hillcrest Rd., 78 Days On The Market, SOLD At $ 4,900,000, Listed At $ 5,250,000
1238 Coldwater Canyon Dr., Beverly Hills, 277 Days On The Market, SOLD At $ 2,850,000, Listed At $ 3,595,000
BHPO 3127 Hutton Dr., Beverly Hills, 89 Days On The Market, SOLD At $ 1,600,000, Listed At $ 1,840,000

2009-11-06T13:43:00.001-08:00

CONNIE ON FOX BUSINESS NOV 5, 2009
Connie was welcomed by host Stuart Varney on Fox Business to discuss extending the tax credit to home buyers into 2010. They covered concerns over the cost, fraud in the program and its effectiveness. Original Air Date: Nov 5, 2009

http://www.foxbusiness.com/search-results/m/27271894/real-estate-broker-supports-tax-credit-plan.htm#q=connie+de+groot

HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 27

2009-10-30T09:33:00.000-07:00

The list prices and the prices some of these homes actually SOLD for is evidence that there is room to negotiate! You can see that some of these buyers did very well- congratulations!! Once again, there are deals to be had in all areas and not just with bank-owned properties. If a home is over-priced you may be the only buyer looking at that house and this will give you time to negotiate with the Seller. If you are selling your home today, do yourself a favor, price it right.

HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 27

631 N Crescent Dr., Beverly Hills, 14 Days On The Market, SOLD At $ 6,500,000, Listed At $ 6,900,000
705 N Rexford Dr., Beverly Hills, 161 Days On The Market, SOLD At $ 4,100,000, Listed At $ 5,795,000
602 N Bedford Dr., Beverly Hills, 52 Days On The Market, SOLD At $ 3,226,000, Listed At $ 3,725,000
BHPO-9140 Hazen Dr., Beverly Hills, 158 Days On The Market, SOLD At $ 2,278,000, Listed At $ 3,695,000
515 N Alta Dr., Beverly Hills, 42 Days On The Market, SOLD At $ 2,870,000, Listed At $ 3,495,000
515 Alpine Dr., Beverly Hills, 119 Days On The Market, SOLD At $ 2,800,000, Listed At $ 3,195,000
504 N Hillcrest Rd., Beverly Hills, 62 Days On The Market, SOLD At $ 3,180,000, Listed At $ 3,395,000
625 N Alpine Dr., Beverly Hills, 58 Days On The Market, SOLD At $ 3,150,000, Listed At $ 3,700,000
BHPO-1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, SOLD At $ 2,400,000, Listed At $ 3,353,000
BHPO-2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000
446 S Camden Dr., Beverly Hills, 89 Days On The Market, SOLD At $ 1,630,000, Listed At $ 1,395,000
BHPO-9545 Dalegrove Dr., Beverly Hills, 6 Days On The Market, SOLD At $ 1,240,000, Listed At $ 1,249,000
BHPO-2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800

Pending Home Sales and Homes Sold Oct 1-Oct 20th in Beverly Hills 90210

2009-10-21T15:38:00.000-07:00

PENDING HOME SALES in BEVERLY HILLS 90210 OCT 1 - OCT 20

Listed Price is the price when an offer was accepted and not necessarily the original asking price.

624 N Hillcrest Rd., Beverly Hills, 78 Days On The Market, Listed At $ 5,250,000

BHPO-1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, Listed At $ 2,795,000

BHPO-3111 Hutton Dr., Beverly Hills, 23 Days On The Market, Listed At $ 1,850,000

BHPO-3053 Hutton Dr., Beverly Hills, 56 Days On The Market, Listed At $ 2,095,000

126 N Le Doux Rd., Beverly Hills, 13 Days On The Market, Listed At $1,270,000

HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 20

631 N Crescent Dr., Beverly Hills, 14 Days On The Market, SOLD At $ 6,500,000, Listed At $ 6,900,000

705 N Rexford Dr., Beverly Hills, 161 Days On The Market, SOLD At $ 4,100,000, Listed At $ 5,795,000

602 N Bedford Dr., Beverly Hills, 52 Days On The Market, SOLD At $ 3,226,000, Listed At $ 3,725,000

BHPO-9140 Hazen Dr., Beverly Hills, 158 Days On The Market, SOLD At $ 2,278,000, Listed At $ 3,695,000

515 N Alta Dr., Beverly Hills, 42 Days On The Market, SOLD At $ 2,870,000, Listed At $ 3,495,000

BHPO-2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000

BHPO-9545 Dalegrove Dr., Beverly Hills, 6 Days On The Market, SOLD At $ 1,240,000, Listed At $ 1,249,000

BHPO-2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800
____________________________________________________________________________________________

Report Shows Foreclosures Increasing for High-End Homes

2009-10-16T08:41:00.000-07:00

By Nick Timiraos

More evidence that the foreclosure pain that began in overbuilt middle-class communities is moving higher up the real-estate food chain: The share of foreclosures in the most expensive third of housing markets is on the upswing.

Around 30% of foreclosures are coming from homes in the top tier of the housing market, up from 16% when the foreclosure crisis began three years ago, according to new research from real-estate Web site Zillow.com. Meanwhile, the bottom one-third of the market now accounts for just 35% of foreclosures, down from 55% in 2006.

The Zillow research compared homes against the median value for their respective local market, and broke each market into three tiers—the bottom, middle and top third, by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade.

The Zillow area chart (above) offers a good visual representation of what’s happening. When the foreclosure crisis accelerated in 2007, foreclosures increased among all price levels, but they rose from historically lower levels at the middle and top tiers, increasing the foreclosure share among those price brackets.

This summer, foreclosures began to pick up again, and the high-end share of homes are accounting for a growing piece of the foreclosure pie. “The slope of that curve in recent months is much sharper than it was recently,” says Stan Humphries, chief economist for Zillow.

Foreclosures are moving up the food chain for a variety of reasons (see this WSJ story for more). One key factor: deterioration among prime mortgages to borrowers with good credit. These often included exotic mortgages, such as option adjustable-rate mortgages and interest-only mortgages, that were increasingly used to buy more expensive homes. Borrowers often aren’t able to refinance out of these products because home values have fallen, leaving them with little equity in their homes.

Zillow estimated that nearly one in four homes with mortgages was worth less than the value of the property at the end of June. Mr. Humphries says he doesn’t expect to see foreclosure volumes level off until later in 2010.

Home Buyer Tax Credit Won't Die Quietly

FHA Head Rejects Calls for Higher Down Payments

Home Buyer Tax Credit Won’t Die Quietly

FHA Head Rejects Calls for Higher Down Payments12

2009-10-12T14:41:00.001-07:00

Hello Everyone, Here's what has happened in October in Beverly Hills Post Office, (90210). If you have any questions feel free to give me a call. I will update this information every week so check in often.

PENDING HOME SALES in BHPO 90210 OCT 1 - OCT 12
Listed Price is the price when an offer was accepted and not necessarily the original asking price.
3111 Hutton Dr., Beverly Hills, 23 Days On The Market, Listed At $1,850,000
1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, Listed At $ 2,795,000

HOME SOLD in BHPO 90210 OCT 1- OCT 12
2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000
2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800

Mortgage Modification Program Ahead Of Schedule

2009-10-09T08:52:00.000-07:00

Mortgage modification program ahead of schedule, White House says

The $75-billion Making Home Affordable program, after a fitful start, has helped 500,000 borrowers get their payments lowered, the administration says.
By Jim Puzzanghera
October 8, 2009 8:57 a.m

Reporting from Washington - The Obama administration today said its much-criticized program to help homeowners avoid foreclosure had met its initial target of 500,000 trial mortgage modifications about a month ahead of schedule, touting the news as a sign the effort is gaining momentum.

FOR THE RECORD: An earlier version of this article incorrectly cited a cost of $50 billion for the Making Home Affordable program. The correct figure is $75 billion.

"We believe we are absolutely moving in the right direction and have reached an important turning point in our modification efforts . . . but we are nowhere near the finish line yet," said Housing and Urban Development Secretary Shaun Donovan.Donovan and Treasury Secretary Timothy F. Geithner announced the milestone, which they said was reached Tuesday, and later today are scheduled to meet with representatives of major mortgage providers to push for continued improvement in the administration's Making Home Affordable program.

The $75-billion program, announced in February, was designed to ease foreclosures by helping struggling homeowners modify the terms of their mortgages through refinancing, reduced principal or longer payment terms.But the program was slow in getting started, so the administration has been refining it. This spring it added cash incentives for borrowers and lenders to participate. And in July Geithner and Donovan pushed the chief executives of mortgage servicers to increase staff, streamline application procedures and improve their customer response.

The administration set a goal of 500,000 trial modifications by Nov. 1. That goal was reached three weeks ahead of time. Geithner said new trial modifications are being added at a faster rate than homeowners are becoming eligible for the program. Combined with a surge of about 3 million homeowners refinancing their mortgages because of lower interest rates, the housing market is beginning to stabilize, Geithner said."The broad signs we've seen in the housing market . . . are encouraging," he said. "They're still early and we're still living with some risk that housing is going to be a source of weakness for the broader economy and you still face an unacceptably large number of families at risk of losing a home they can afford to stay in.

"Bank of America, the nation's No. 1 mortgage servicer, said this week it would meet the goal set for it by the administration of 125,000 modifications by Nov. 1. The company said it had started about 95,000 modifications as of Sept. 30. Wells Fargo reported today that it had arranged 62,989 trial modifications under the program as of Sept. 30, nearly double the number of modifications it had done through the end of August.Administration officials said that about 40% of the nation's estimated 1.2 million eligible homeowners are participating in the program.

To qualify, a homeowner must be living in the house and the loan can't be above $729,500. The administration said it wants to modify 3 million to 4 million mortgages over the next three years.About 90% of the modifications are in a trial period, and administration officials are pushing to make those modifications permanent by streamlining documentation procedures.

High-End Homes Could Decline Further?

2009-10-01T17:36:00.000-07:00

From: California Association of Realtors - BASED ON WALL STREET JOURNAL ARTICLE

Seeking real estate bargains? Try looking at the high endBuyers hoping to purchase deeply discounted homes may want to consider purchasing homes in the high end—especially those priced $2 million or more. In some cases, buyers may be able to command even lower prices on these homes, as financing continues to be a challenge for buyers of luxury homes.

MAKING SENSE OF THE STORY FOR CONSUMERS

· While data from the Federal Housing Finance Agency (FHFA) showed that average home prices rose 0.3 percent nationwide between June and July, including a 1.6 percent increase on the west coast, the data only relate to homes purchased with conforming loans guaranteed by the FHFA. These loans are mortgages of up to $417,000 or up to $713,000 in the country’s most expensive regions. The outlook for homes priced above that amount remains bleak.

· In many areas across the country there is a new level of value being established. According to one broker, homes that used to sell for $8 million now are selling for $6 million, while homes previously priced in the $10 millions are selling for $8 million. The price adjustment in the high end appears to be about 20- to 30 percent lower.

· A recent survey by Trulia.com showed that sellers listing homes for more than $2 million have reduced their asking prices by a total of $7 billion, with an average price reduction of 14 percent.

· Chip Case, economics professor at Wellesley College and coauthor of the Case-Shiller index, says that some of the markets finally may be catching up to the wider housing market downturn. “That level was more in the hold-out category,” he says. “Up until recently, the foreclosures weren’t hitting that level. But they are now. There’s no question about that. You’re seeing some contagion from the prime level to the luxury end.”

· Sooner or later, even high-end homeowners need to sell. And, when they get tired of waiting, they reduce their asking prices. Factoring in taxes, upkeep and the opportunity cost of keeping money in a non-performing asset, an empty luxury home may be costing owners a lot just by sitting there, giving them a powerful incentive to make a deal.

Read entire article: Wall Street Journal http://online.wsj.com/article/SB10001424052970204488304574429311693264646.html#

PENDING HOME SALES FOR 90210- SEPTEMBER 2009

2009-10-01T11:23:00.000-07:00

If you thought no home was selling, think again! Homes that are priced well sell. A pricing strategy and global marketing campaign will give you the best chance of selling at the highest price. Call Connie for more details.

Listed Price is the price when an offer was accepted and not necessarily the original asking price.

72 Beverly Park Dr., Beverly Hills, 233 Days On The Market, Listed At $ 22,500,000
620 Walden Dr., Beverly Hills, 170 Days On The Market, Listed At $ 7,595,000
705 N Rexford Dr., Beverly Hills, 161 Days On The Market, Listed At $ 5,095,000
602 N Bedford Dr., Beverly Hills, 52 Day On The Market, Listed At $ 3,725,000
504 N Hillcrest Rd., Beverly Hills, 62 Days On The Market, Listed At $ 3.395,000
515 N Alta Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,195,000
1800 N Beverly Dr., Beverly Hills, 57 Days On The Market, Listed At $ 2,950,000
1160 San Ysidro Dr., Beverly Hills, 66 Days On The Market, Listed At $ 2,700,000
1150 San Ysidro Dr., Beverly Hills, 176 Days On The Market, Listed At $ 2,675,000
245 S. Camden Dr., Beverly Hills, 2 Days On The Market, Listed At $ 2,600,000
341 S. Swall Dr., Beverly Hills, 64 Days On The Market, Listed At $ 2,575,000
228 S. Swall, Beverly Hills, 34 Days On The Market, Listed At $ 2,395,000
12681 Mulholland Dr., Beverly Hills, 97 Days On The Market, Listed At $ 2,250,000
305 N Maple Dr., Beverly Hills, 5 Days On The Market, Listed At $ 1,895,000
2054 Coldwater Canyon Dr., Beverly HIlls, 80 Days On The Market, Listed At $ 1,795,000
126 N Maple Dr., Beverly Hills, 109 Days On The Market, Listed At $ 1,795,000
488 Hillgreen Dr., Beverly Hills, 35 Days On The Market, Listed At $ 1,725,000
3127 Hutton Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,697,000
9834 San Circle, Beverly Hills, 37 Days On The Market, Listed At $ 1,499,000
455 S. El Camino Dr., Beverly Hills, 198 Days On The Market, Listed At $ 1,499,000
1366 Angelo Dr., Beverly Hills, 166 Days On The Market, Listed At $ 1,399,000
446 S Camden Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,395,000
2290 Gloaming Way, Beverly Hills, 193 Days On The Market, Listed At $ 1,349,000
9545 Dalegrove Dr., Beverly Hills, 2 Days On The Market, Listed At $ 1,295,000
9011 Alto Cedro Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,250,000
1625 Clear View Dr., Beverly Hills, 51 Days On The Market, Listed At $ 1,000,000
222 S Hamel Dr., Beverly Hills, 28 Days On The Market, Listed At $ 999,500
9801 Easton Dr., Beverly Hills, Listed At $ 800,000
164 N Hamel Dr., Beverly Hills, 0 Days On The Market, Listed at $ 765,000

HOMES PENDING Sept 1 - Sept 22 in Beverly Hills CA 90210

2009-09-22T16:10:00.000-07:00

@72 Beverly Park Dr., Beverly Hills, 233 Days On The Market, Listed At $ 22,500,000
@620 Walden Dr., Beverly Hills, 170 Days On The Market, Listed At $ 7,595,000
@705 N Rexford, Dr., Beverly Hills, 161 Days On The Market, Listed At $ 5,095,000
@515 N Alta Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,195,000
@1150 San Ysidro Dr., Beverly Hills, 176 Days On The Market, Listed At $ 2,675,000
@12681 Mulholland Dr., Beverly Hills, 97 Days On The Market, Listed At $ 2,250,000
@305 N Maple Dr., Beverly Hills, 5 Days On The Market, Listed At $ 1,895,000
@488 Hillgreen Dr., Beverly Hills, 35 Days On The Market, Listed At $ 1,725,000
@3127 Hutton Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,697,000
@9011 Alto Cedro Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,250,000
@1625 Clear View Dr., Beverly Hills, 51 Days On The Market, Listed At $ 1,000,000
@222 S Hamel Dr., Beverly Hills, 28 Days On The Market, Listed At $ 999,500
@9801 Easton Dr., Beverly Hills, Listed At $ 800,000

The Following Homes Went Pending then CANCELLED Escrow September1-22:

602 N Bedford Dr., Beverly Hills, Listed At $ 3,725,000
2290 Gloaming Way, Beverly Hills, 193 Days On The Market, Listed At $ 1,349,000
321 N Roxbury Dr., Beverly Hills, 51 Days On The Market, Listed At $ 2,699,000
126 N Maple Dr., Beverly Hills, 109 Days On The Market, Listed At $ 1,795,000
2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, Listed At $ 916,800

The Following Homes Went Pending and CLOSED Escrow September1-22

511 N Beverly Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,395,000 -Sold At $ 3,200,000

1.4 Million Have Used Home-Buyer Tax Credit

2009-09-21T08:19:00.000-07:00

Charlotte Business Journal

An estimated 1.4 million individuals have used the $8,000 federal tax credit for first-time home buyers, according to the Internal Revenue Service.
A Dec. 1 deadline looms for first-time buyers to purchase a house to qualify for the tax credit.
The credit equals 10 percent of the purchase price of a home, up to $8,000. It either reduces the individual’s tax payment or will be returned as a higher refund next year.
There are income limits to the program, which is designed to ease the housing crisis by reducing the inventory of homes on the market.

Connie's thoughts: KEEP THE $ 8000 FIRST-TIME BUYER TAX CREDIT

1. IT WORKED and studies have shown that hundreds of thousands of homes were SOLD , in part due to this tax credit. The article above says over 1 million buyers are already receiving this credit. If we do not have this credit we will see fewer sales and with more foreclosures coming to market, this could have a negative effect on housing.
2. When a house is sold it keeps stimulating the economy because it creates jobs for contractors, home amenity suppliers, etc. And we all know that a house is never done!
3. Housing was at the center of this recession, to stop a program that is working so well, at this time, could be a mistake.
4. Housing and housing related services STIMULATED THE ECONOMY and that's good since much of the stimulous package hasn't been put to work yet.
5. Some of the credits that were given in the past for other things were not spent and went into savings instead. The first-time homebuyer tax credit is being spent by new home owners on their home so it definitely stimulates the economy as intended.
6. The first-time buyer tax credit should also be extended to ALL HOME BUYERS for a period of time. The jumbo market is still sufferring and prices in those communities continue to decline. At least give a buyer of an expensive home something for moving forward today.

Some Facts On Housing in California

2009-09-10T08:14:00.000-07:00

Calif. median home price
July 09: $285,480 (Source: C.A.R.)Calif. highest median home price by C.A.R. region July 09: Santa Barbara So. Coast $885,000 (Source: C.A.R.)Calif. lowest median home price by C.A.R. region July 09: High Desert $110,650 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index
Second Quarter 2009: 67 percent (Source: C.A.R.)

Mortgage rates
Week ending 9/3/09 30-yr. fixed: 5.08% Fees/points: 0.7% 15-yr. fixed: 4.54% Fees/points: 0.6% 1-yr. adjustable: 4.62% Fees/points: 0.6% (Source: Freddie Mac)

Headline News Today!

2009-08-31T08:05:00.000-07:00

Housing News Today Centers Around Foreclosures:
There are currently 1.5 Million loans in active foreclosure but there are 3.5-4 million additional loans the banks are holding that are also in trouble. And those newer jumbo loans made within the past 12 months are defaulting at a greater rate than before. The reason for these new jumbo defaults seems to point to jobs losses.

Other News Making Headlines:
China Selling Accelerates, Stocks Tumble 6.7%
Fewer Americans Fear Healthcare Costs: Poll
Lehman Claims Could Reach $100 Billion: PwC
As Internet Turns 40, Barriers Threaten its Growth
Japan Democrats Take Power, Challenges Loom
Merkel Loses Ground to Left in German States
Tribune May Exit Bankruptcy This Fall: Report
GM to Form China Venture with FAW
AIG Weighing Many Options for ILFC
Rep. Frank Eyes Fed Audit, Emergency Lending Curbs

New Home Sales Up In July 9.6%!

2009-08-26T07:04:00.000-07:00

Housing Numbers Keep Getting better but always remember that real estate is local. There are different things going on in different neighborhoods so having someone that is knowledgeable and that you trust help advise you is critical to buying or selling well.

New Home Sales Are Up 9.6 Percent in July (vol. 433,000) - good news!
The reasons could be as follows:

First Time Home buyer tax credit
In California there is a 10,000 dollar tax credit for buyers of new homes.
A buyer of a new home in California could, if they qualify, take advantage of both credits.
Builders have been giving incentives to buyers such as upgraded appliances, financing, etc
Affordability has increased due to price and loan rates

But with all this good news there are still struggles in the market.

Obtaining jumbo loans continues to be a challenge for most buyers and this has greatly affected homes values in areas with homes over 1 million dollars.

New Appraisal Guidelines are further complicating closings when "out of area" appraisers try to calculate home values and/or because of the new requirements.

The tax credit for first-time buyers may expire the end of November

Many Adjustable mortgages are due to reset soon

More foreclosures are waiting to come to market (shadow inventory)

Commercial real estate showing serious signs of trouble

Unemployment keeps rising

But Let's End On A Good Note:
I am working with a few buyers on the West side of Los Angeles and we have lost out on many properties because of bidding wars! Yes, buyers are buying and making offers in good locations and on properties that are priced well. Those Sellers that get their home priced right SELL THEIR HOME and most often, have a choice of whom they will sell it to. Remember, getting a loan is difficult so you want the most qualified buyer!

If you have any questions or comments please send me an email of give me a call.
Connie

Just Listed A Great Home in 90210

2009-08-25T07:01:00.000-07:00

I just listed a beautifully remodeled approx 3000 sq ft One-Story Spanish home with serene views of the city of Beverly Hills, located on quiet cul-de-sac and with traditional spanish accents throughout. This home features 4 Bdrms plus a Maids, a Large Pool, a Living room with a pitched roof & views of city, a luxurious Master Bath and so much more! Most of the rooms open to the pool or have city views and it is just 5 minutes from the center of Beverly Hills and the Beverly Hills Hotel for convenience. For more details call Connie De Groot, Licensed Realtor/Broker in Beverly Hills at Ph 310 913.1184!

HOUSING SALES IN BEVERLY HILLS 90210 AND SANTA MONICA 90402

2009-08-10T17:21:00.000-07:00

CONNIE’S MARKET UPDATE !

ACTIVITY FOR AUGUST 1 - AUGUST 10 2009

NOW IN ESCROW FIRST 10 DAYS OF AUGUST 2009

418 ROBERT LN, Beverly Hills
$ 9,000,000

126 N MAPLE DR, Beverly Hills
$1,795,000

9831 PORTOLA DRIVE, Beverly Hills
$779,000

NOW SOLD/CLOSED FIRST 10 DAYS OF AUGUST 2009

806 N RODEO DR, Beverly Hills
lISTED AT $12,000,000
SOLD AT $9,500,000

1860 COLDWATER CYN DR, Beverly Hills
LISTED AT $1,239,000
SOLD AT $1,150,000

2100 N BEVERLY DR , Beverly Hills
LISTED AT $3,95,000
SOLD AT $3,850,000

403 20TH STREET, Santa Monica

LISTED AT $ 3,195,000

SOLD AT $ 3,050,000

What's Happening...Multiple Offers Again?

2009-08-09T11:16:00.000-07:00

We are now seeing that buyers are rushing to those properties in the good locations/established neighborhoods that are priced well. That's good news for some but not for those buyers who lost out on a property they loved. Many buyers today are scratching their heads in dismay because they have heard there are DEALS and that they have the POWER yet many buyers are experiencing something quite different.

Just last week, I took out a buyer to see a new listing. There were over 50 people that came to the open house and that was amazing since the open house was not even advertised! We wrote an offer the next morning on that property but found out that the agent already received 3 other offers! I had a difficult time explaining to my client, who was also a first-time buyer, that she had to rush and to fight for this property. Most buyers think that this is their market and are surprised and angry to experience something reminiscent of a few years ago.

My client couldn't believe that someone would pay "asking" in this market and I understood her confusion because looking at current sales in the building, the asking price could have been a little high! So why did these buyers rush to make offers? This is what many do not quite understand. The reason is that the current supply of properties also effects the results. In this case, this property, according to recent sales in the building, may have been a little high, but considering the existing inventory, it looked like a DEAL. When I walked into the property I was equally amazed because I had seen nothing in the area that offered this much value. My buyer lost out on this property in Brentwood, California. After much discussion, my client did agree to fight for the property and did offer the "asking price " in the counter-offer she was provided. Unfortunately, my client who is a doctor with excellent credit did not succeed here because the other buyer offered over asking and with ALL CASH. In this case the "all cash" was a plus since the accepted price may not have appraised.

If you are a buyer and do not wish to compete in this manner then consider homes that have been on the market for over 100 days and those homes that are also over-priced. Here you will most likely be the only interested party and will have the time to perhaps negotiate a great deal.
Think about it. If you wish to discuss this more, feel free to call me.

Connie De Groot
Coldwell Banker - Los Angeles
http://www.conniedegroot.com/

HOMES IN ESCROW JULY 20 - JULY 31

2009-07-31T13:12:00.000-07:00

The Following Homes in 90210 (Beverly Hills) and 90402 (Santa Monica) Opened Escrow between July 20th and July 31st!!! Congratulations to all these Buyers & Sellers!

424 Robert Lane, Beverly Hills, 17 Days On The Market, Listed At $ 7,900,000
2801 Hutton Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,799,000
620 22nd St, Santa Monica, 52 Days On The Market, Listed At $ 1,799,000
1360 Monte Placentia Wy, Beverly Hills, 165 Days On The Market, Listed At $ 699,000

The housing market has picked up since April and this trend seems to be continuing. Homes are selling but only if they are not over-priced so proper pricing that will later be supported by an appraisal is key to selling.

If you have any questions, please give me a call or send me an email.

Appearing On FOX BUSINESS CHANNEL Tomorrow Morning

2009-07-31T06:48:00.000-07:00

I will be getting up early tomorrow morning, Saturday, to do a national TV show on Fox Business called "Your Questions Your Money". I will be a part of a panel answering, LIVE, viewer questions for one hour related to housing. All the fun begins bright and early at 7 am PST or 10 am EST!

Have a nice weekend,
Connie

Connie Speaks With Neil Cavuto On Fox News

2009-07-30T12:40:00.000-07:00

FOX NEWS CHANNEL

Connie appeared with famed host NEIL CAVUTO on "Your World Cavuto" on the FOX NEWS CHANNEL to discuss another month of rising NEW HOME SALES and what this means for the national housing market. Original Air Date: July 27, 2009

click on link to view: Your World Fox News July 27 09

Existing-Home Sales Up Again

2009-07-23T08:04:00.000-07:00

Washington, July 23, 2009

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate1 of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”

A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition – this is causing real harm to both buyers and sellers.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.

Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.
“This is another hopeful sign – if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.

An NAR practitioner survey in June showed first-time buyers accounted for 29 percent of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.

The national median existing-home price3 for all housing types was $181,800 in June, which is 15.4 percent below June 2008. Distressed properties, which accounted for 31 percent of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2 percent higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0 percent below June 2008.

Regionally, existing-home sales in the Northeast rose 2.5 percent to an annual pace of 820,000 in June, but are 4.7 percent below a year ago. The median price in the Northeast was $249,400, down 5.9 percent from June 2008.

Existing-home sales in the Midwest increased 0.9 percent in June to a level of 1.10 million but are 1.8 percent lower than June 2008. The median price in the Midwest was $157,000, which is 9.1 percent below a year ago.

In the South, existing-home sales rose 4.0 percent to an annual pace of 1.81 million in June but are 3.7 percent below a year ago. The median price in the South was $163,200, down 11.9 percent from June 2008.

Existing-home sales in the West improved by 6.4 percent to an annual rate of 1.16 million in June, and are 11.5 percent higher than June 2008. The median price in the West was $214,800, which is 24.9 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Dangerously Delaying the Inevitable- By Morgan Housel July 2, 2009

2009-07-22T09:30:00.000-07:00

"The Obama administration relaxed the requirements for government-backed mortgage modifications yesterday(July 1, 2009). The program, a $75 billion assistance plan announced earlier this year, originally allowed homeowners with loan-to-value ratios up to 105% qualify for refinancing, provided the loan is backed by Fannie Mae (NYSE: FNM) or Freddie Mac (NYSE: FRE). That limit has now been upped to 125%."

"The original mortgage modification program was failing to help as many people as Washington wanted. And focusing on housing makes sense from a recovery standpoint. This mess started in housing, and it'll surely end there."

"As Warren Buffett recently noted, fix housing and "the world will change in a big way."
But -- and this is a very significant but -- past evidence of the effectiveness of mortgage modifications is really, really atrocious. A recent report by the Office of Thrift Supervision and the Comptroller of the Currency detailing the amount of redefaults, or troubled loans that find their way back into default after modification, shows just what I'm talkin' about."

"Of the modified loans 30 or more days delinquent, here's what it found:
Modification Date (2008)
1. Three Months After Modification
2. Six Months After Modification
3. Nine Months After Modification
4. 12 Months After Modification

Source: Comptroller of the Currency, Office of Thrift Supervision, June 2009.
One year out, over 60% of modified mortgages end up where they started … in default. What's really amazing is how quickly things reverted: Just 90 days after modification, almost half of mortgages were back in default. That's utterly pathetic. Rising joblessness is the most obvious answer to why so many modifications fail. But that alone hardly accounts for the ungodly redefault rate. When unemployment goes up a few percentage points while redefaults hit 60%, something else is surely at play. And it is One of the big factors fueling redefaults is just what the Obama administration seems to be pooh-poohing: underwater homeowners."

"When your house is worth less than your mortgage, there's a huge incentive to give up and walk away even if you can make your monthly payments. The logic here is simple: The beauty of homeownership is based on a saying that goes something like "with every mortgage payment, you'll own a little bit more of your house." But when you're underwater, the only thing you "own" is the liability. Monthly payments decrease your debt, but you still don't own one inch of the house. The bank does. Taking away this fundamental sense of ownership zaps the incentive to keep making payments. The sensible thing to do, many find, is to stop paying and walk away."

"This is suicide on your credit rating and a nightmare for housing-heavy banks like Wells Fargo (NYSE: WFC) and Bank of America (NYSE: BAC), but the pros often outweigh the cons. When the job market is this tight, becoming mobile again is worth its weight in gold. When it comes down to it, high monthly payments aren't what are pushing many homeowners into default. It's the fact that their mortgage balances are so high that it doesn't make sense to keep making payments."

Moving on Now back to our Office of Thrift Supervision report. In the first quarter, a scant 1.8% of modifications actually reduced mortgage principal -- the kind of alteration that entices underwater homeowners to keep making payments. Most were interest rate reductions, or capitalizations of missed payments and fees. The latter is literally just taking debt you owed yesterday and tacking it on to what you'll owe tomorrow. Sober people think this is an effective way to solve an excessive debt problem. Honestly."

"And that's why the redefault rate is so high: Underwater homeowners are still highly incentivized to default, even with reduced monthly payments. And as home prices fall, their ranks are growing by the day. Modifications in their current form are, more often than not, just delaying the inevitable."

Pending Home Sales from July 1-July 20 in Beverly Hills 90210 and Santa Monica 90402

2009-07-20T08:16:00.001-07:00

Pending Home Sales For Beverly Hills 90210:

1. Hartford Way Listed At $ 7,800,000
2. 1916 San Ysidro Dr. Listed At $ 1,039,000
3. 10001 Westwanda Listed At $ 399,000

Pending Home Sales For Santa Monica 90402:

1. 311 10th St Listed At $ 3,895,000
2. 523 14th St Listed At $ 2,969,000
3. 227 Alta Ave. Listed At $ 2,795,000
4. 636 16th St Listed At $ 1,991,000
5. 653 Kingman Ave Listed At $ 1,695,000

National Housing News

2009-07-17T08:57:00.000-07:00

Lower rates sent applications to refinance mortgages shooting up 17.7 percent the week ending July 10, but requests for purchase loans were down 9.4 percent, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey. July 15, 2009

A record 1.5 million properties were in the foreclosure process – default notices, auction sale notices and bank repossessions – during the first six months of 2009, according to a report by RealyTrac. CNN: 1.5 million homes in foreclosure in '09 By Les Christie07/16/2009A

The White House Has A New Idea For Housing- like it?

2009-07-16T15:10:00.000-07:00

CLICK TO VIEW CLIP: If You Can't Pay the Mortgage, Pay Rent?

Connie on Fox Business July 15, 2009 to discuss with Liz and David if mortgage defaulters should be allowed to rent their homes. Below are some points that were discussed on that segment.

This could be a bad idea for the following reasons:

1. The Banks will need to manage this and it will cost them time and money to manage.

2. They will add property management to their growing list of tasks? This is not what they specialize in doing and they have their hands full with short-sales, REO's etc.

3. Historically speaking, a large percent of those that default on a loan re-default. If this is so, the banks could be dealing with many that stop paying rent. Resolving this could cost time and money.

4. This doesn't send a good message to responsible borrowers. And what are the consequences for renters that stop paying?

5. Before trying an idea like this we should further explore increasing demand amongst those that truly can afford to own a home. There is a lot of money on the sidelines just waiting for the right opportunity. (the tax credit is working so more tax credits with higher limits are needed for first-time buyers, a capital gains exemption for investors for a limited amount of time should also be considered, etc.) These incentives do not need a lot of management and oversight so they are also cost efficient.

6. There are benefits with this plan IF the renter is responsible and taking care of the property. It would be good for the bank who owns that asset and it would be good for the neighborhood not to have a vacant home. Nevertheless, the troubles caused by those that DO NOT live up to their commitments may far outweigh these benefits.

What do you think?

WHAT ABOUT MORE TAX INCENTIVES FOR HOUSING

2009-07-11T11:31:00.000-07:00

HERE'S SOMETHING TO THINK ABOUT:

For the money we gave to GM we could have given 3.3 MILLION HOME BUYERS a tax credit of 15,000!! This would have gone a long way to stabilizing housing. As Warren Buffet said...we must fix housing to turn this economy around.

For the past year, I have strongly suggested more TAX INCENTIVES for home buyers. Historically, sales/price discounts have worked and businesses that are offering good deals are finding buyers today! It is working in retail. People are seeing deals with restaurants, hotels and clothing stores and people are being lured towards those businesses because they see a DEAL.

This is why, more incentives for first-time home buyers AND ALL HOME BUYERS is a very good idea. Some suggestions:

A. For a limited time, give investors a CAPITAL GAINS HOLIDAY if they purchase a home today. It will cost taxpayers nothing now, it will stimulate the economy, increase demand and get us closer to stabilizing housing. The government will not receive much revenue from capital gains for a few years anyway but investors will see the benefit and respond. We still have lots of money sitting on the sidelines waiting for the right opportunity!

B. Extend the tax credit to first-time home buyers through next year, increase the amount to
$ 15,000 and offer it to buyers of all homes or offer it to first-time buyers only and a capital gains holiday to all other buyers of homes (of course set an upper price limit)

Santa Monica 90402 Homes Pending or With Accepted Offers

2009-07-04T12:05:00.000-07:00

HAPPY 4TH OF JULY !!!!

According to the Multiple Listing Service the following homes are PENDING or have ACCEPTED OFFERS to purchase but are looking for backup offers. Data from period June 1, 2009 - July 1, 2009 in Santa Monica 90402(Single Family Residence):

PENDING SALES:
1. 315 Palisades Listed At: 5,299,000
2. 310 22nd St Listed At: 4,495,000
3. 403 20th St Listed At: 3,195,000
4. 634 23rd St Listed At: 2,750,000
5. 633 11th St Listed At: 2,299,000

ACCEPTED OFFERS BUT STILL LOOKING FOR BACKUP OFFERS:
1. 133 17th St Listed At: 3,695,000
2. 457 24th St Listed At: 2,495,000

For updates on this neighborhood continue to visit my website/blog.

Beverly Hills 90210 Homes Pending or With Accepted Offers

2009-07-01T11:55:00.000-07:00

According to the Multiple Listing Service the following homes are PENDING or have ACCEPTED OFFERS to purchase but looking for backup offers. Data from period June 1, 2009 - July 1, 2009 in Beverly Hills 90210 (Beverly Hills & BHPO):

ACCEPTED OFFERS BUT STILL LOOKING FOR BACKUP OFFERS:
1. 1357 Schuyler Rd Listed At 2,495,000
2. 9712 Heather Rd Listed At 3,299,000
3. 3335 Clerendon Rd Listed At 4,795,000
4. 1435 Loma Vista Dr Listed At 5,999,000
5. 527 N Hillcrest Rd Listed At 3,950,000
6. 2100 N Beverly Dr Listed At 3,995,000
7. 9788 Oak Pass Rd Listed At 1,649,000
8. 9834 San Cir Listed At 1,499,000
9. 2985 Hutton Dr Listed At 2,649,000
10.2075 N Beverly Dr Listed At 2,495,000
11.515 N Alpine Dr Listed At 3,195,000

PENDING SALES:
1. 9486 Rembert Ln Listed At 2,950,000
2. 475 Castle Pl Listed At 4,975,000
3. 9476 Hidden Valley Listed At 1,200,000
4. 126 N Maple Dr Listed At 1,795,000

Pending Home Sales For May 2009

2009-07-01T08:31:00.000-07:00

May Pending Home Sales Are UP 5.7 percent from May 2008- Nationally

Data On Regions Across the Country:
West: UP 2.2 percent
Northeast: UP 3.1 percent
South: DOWN 1.7 percent
Midwest: DOWN 1.3 percent

May Pending Home Sales Are UP 0.1 percent from April 2009-Nationally

This is the fourth consecutive month pending home sales are UP but actual existing home closings were only up 2 months and this may be due to delays in obtaining loans and because some buyers are having more difficulty obtaining loans because of new appraisal standards.

10 Worst Real-Estate Markets for 2009

2009-06-28T09:46:00.000-07:00

CNN Money.com
Sources: National Association of Realtors; Moody's Economy.com

The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.
1 of 10

1. Los Angeles
2008 median house price: $375,340
2009 projected change: -24.9%
2010 projected change: -5.1%

The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.

2. Stockton, Calif.
2008 median house price: $248,050
2009 projected change: -24.7%
2010 projected change: -4.0%

One in every 94 homes received a foreclosure filing this November in this northern California market near Sacramento, according to RealtyTrac. Eight of the ten worst housing markets projected for 2009 are in California.

3. Riverside, Calif.
2008 median house price: $256,540
2009 projected change: -23.3%
2010 projected change: -4.8%A popular

4. Miami-Miami Beach
2008 median house price: $293,590
2009 projected change: -22.8%
2010 projected change: -6.4%Miami

5. Sacramento
State Capitol building in Sacramento
2008 median house price: $225,140
2009 projected change: -22.2%
2010 projected change: 2.3%

High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.

6. Santa Ana-Anaheim
2008 median house price: $532,810
2009 projected change: -22.0%
2010 projected change: -3.5%

Of the 100 biggest markets, this Orange County area, which includes Anaheim and Irvine, was the fifth most expensive place to live this year. But in 2009, prices are forecast to decline by $121,000.

7. Fresno
2008 median house price: $257,170
2009 projected change: -21.6%
2010 projected change: -3.3%

Fresno is located between Los Angeles and Sacramento, but it shared their housing woes. Prices in 2009 are expected to fall 44% from just two years ago.

8. San Diego
2008 median house price: $412,490
2009 projected change: -21.1%
2010 projected change: -2.9%

As the luxury condo boom continues to fizzles, median home prices in this southern California market are forecast to fall $87,000 to $326,000 in 2009.

9. Bakersfield, Calif.
2008 median house price: $227,270
2009 projected change: -20.9%
2010 projected change: -2.5%

This city north of Los Angeles had the ninth highest foreclosure rate in November, as one of the country's largest real estate bubbles continues to burst. Including Bakersfield, six of the ten worst foreclosure markets were in California.

10. Washington, D.C.
2008 median house price: $343,160
2009 projected change: -19.9%
2010 projected change: -5.7%

This market, which includes bordering Virginia towns Arlington and Alexandria, is cooling off from record highs. Forecasts call for median prices to slide 20% to $275,000 in 2009.

Obama Mortgage Refinancing Program May Expand

2009-06-26T17:10:00.000-07:00

Obama Mortgage Refinancing Program May Expand, Lockhart Says
By Dawn Kopecki and Jody Shenn

June 19 (AP) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.

The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.

The Home Affordable refinancing program, announced Feb. 18, is part of the U.S. government’s efforts to stem soaring foreclosures and bolster consumer spending. The 125 percent level on loan-to-values would preserve the ability of Fannie Mae and Freddie Mac to package and sell the debt into so-called real estate mortgage investment conduits, he said. While 125 percent loan-to-value ratio is on the table, Lockhart said “it’s not necessarily the number we’re going to end up with.” "

The program has been “seeing a slowdown” as mortgage rates increase, he said. The average rate on a typical 30-year fixed loan was 5.38 percent this week ended yesterday, according to McLean Virginia-based Freddie Mac. The rate is up from a record low of 4.78 percent at the end of April.

Under the program, borrowers with loans already owned or guaranteed by Washington-based Fannie Mae or Freddie Mac who have loan-to-value ratios of 80 percent to 105 percent and aren’t delinquent can refinance without buying mortgage insurance, or paying for more insurance than they already have.

Dow Jones and Bankrate.com reported the comments

"Tax Credit For Home Purchases Could Rise"

2009-06-22T08:11:00.000-07:00

Hello bloggers! I have been speaking for months about lifting the limits of the tax credit so that ALL BUYERS could receive a credit. I also feel that a cap gains exemption might be another avenue to consider since the government needs tax money with all the new spending but they will not be receiving much from cap gains for the next few years. Here's the article....

By Stephanie Armour, USA TODAY

Lawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. With the tax credit scheduled to expire in fall, some business groups say the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home.
First-time buyers make up a hefty 40% of home purchases, according to the National Association of Realtors (NAR), which is about 5 percentage points higher than the historical average. The credit, introduced in July 2008, was expanded in February as part of the economic stimulus package. The proposals may face headwinds amid growing public criticism of government spending to rescue the economy and the widening budget deficit.

Some economists say a tax benefit is vital to spur home buying and help stabilize prices.
"I'm fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back," says Bernard Baumohl, an economist at the Economic Outlook Group. "But raising the tax credit will be difficult because it reduces taxes even more."
The White House had no immediate comment Sunday.

Current proposals:
•A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
"It would go a long way toward inducing trade-up buyers into the market," says Lawrence Yun, chief economist at the NAR.
•A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
•Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
The Business Roundtable, a consortium of CEOs from large companies, urged Congress this month to expand the tax credit to $15,000 and make all home buyers eligible.
"The issue is how do we stimulate the move-up market, and that's essential for the economy," says Richard Smith, CEO of Realogy, the parent company of Century 21, Coldwell Banker, Sotheby's International Realty and ERA.

"I think it's going to be a bipartisan effort," Smith says. "The issue is how to pay for it."
The current tax credit does not apply to singles earning more than $95,000 a year and couples who earn more than $170,000. Some business leaders want the income caps eliminated.
Buyers do not have to repay the tax credit if they occupy the home for three years or more.
"A lot of people are taking advantage of it," says David Thomas, a Realtor in Washington, D.C., who adds that expanding the credit would boost the market. "That would be a fantastic idea, to enhance and expand the incentives

FINALLY THE WORD IS GETTING OUT THERE- THE HIGH-END NEEDS HELP!

2009-06-17T15:17:00.000-07:00

For about 6 months now I have used just about every opportunity on National Television to voice my concern that giving incentives just to the low-end and first-time home buyers would not be enough to help housing. It is time we give incentives to ALL BUYERS. We are now seeing more problems in higher-end areas due to high lending requirements such as: high down payments & high mortgage rates, and to the perception that high-end areas will still decline.

When sub-prime loans disappeared, homes in low-end areas dropped drastically but low rates, FHA loans requiring a 3.5 percent down payment and a first-time home buyer credit DRAMATICALLY INCREASED DEMAND. We do not have the same help for high-end areas thus far and if something is not done SOON, I agree with Jody Shenn's Bloomberg article, the suffering will continue.

Here is that article.......

Millionaire Homes’ May Lose Value Until 2012-
By Jody Shenn, June 16, BLOOMBERG

Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts. The CHART OF THE DAY shows the supply of unsold homes by price in California, data that the mortgage-bond analysts including John Sim and Matthew Jozoff used in a June 12 report to illustrate the weakening market for the most-expensive residential properties. The supply of homes priced $750,000 to $1 million held steady while the supply of more expensive properties increased. “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.

The government’s moves to aid the housing market include the Federal Reserve’s mortgage-bond purchases to drive down interest rates; President Barack Obama’s “Home Affordable” loan modification and refinancing programs; and new tax credits for some first-time buyers. None of the U.S. initiatives “directly focused on helping the sales of these so-called millionaire homes,” the analysts wrote. “Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).”

“California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today. The state’s median sales price for existing single-family homes fell 37 percent in April from a year earlier, to $256,700, according to California’s Association of Realtors. Nationwide, the price fell 15 percent to $169,800, according to the National Association of Realtors.

TAX CREDIT MAY BE GIVEN AS CASH TO BUYERS & 100 % FINANCING MAY BE HERE AGAIN-

2009-06-08T14:40:00.000-07:00

This is targeting some buyers with the least amount of disposable income and many who are not in the best position financially, with a delicate economy, to take on this responsibility.

Current policies are helping to make buying a home (in certain areas and price ranges) almost too good to pass up. This is a good thing but only when qualified buyers participate. We experienced what happened when housing was "hot", when word spread and greed took over.

We already know that allowing people to purchase a home with very little down is a bad idea. There should be a significant investment that gives buyers a real incentive to stay in their home and honor their contractual commitments regardless of the market or a personal situation.

The number of first-time home buyers will decrease and our market will be left with traditional buyers who are not responding as strongly to the market but tax incentives could help this trend improve.

It is unfair that low-end housing and first-time home buyers have all the existing benefits and sellers in other higher-end markets and buyers making over a certain limit are simply being ignored.

A first-time home buyer buying in the low-end could have the following options: 100 percent financing, low mortgage rates, very low home prices, and now cash to make buying even easier and risks of buying even lower should the buyer decide to just walk away from the property and his/her responsibilities.

Connie De Groot

Comment:

Roberto Magalhaes at 6:01pm June 8
Hi Connie,Aren't there financial qualifiers for the 100% home financing or is the government taking on some of the risk?My general experience, not necessarily in the US, is that 100% financing of capital goods always lends itself to a loss on the lender side since recovery of foreclosed assets is costly.Dank u! Roberto

Home Sales Are On The Rise But How Can We Keep Up The Momentum?

2009-06-02T13:16:00.000-07:00

REASONS SOME BUYERS ARE BUYING:
The expiration of the first-time home buyer tax credit is coming soon and is one reason buyers are buying now therefore this buying trend will most probably continue until rates change affordability for those first-time home buyers.
2. Commodity prices are up, the dollar is weakening and inflation is already being discussed so some are buying as a hedge against inflation.
3. Consumer confidence leaped up in May so this is also a contributing factor as to why pending sales are up by 6.7 percent which is the largest gain in 7 years!
4. Pending home sales are up for the 3rd month in a row based on affordability (prices, mortgage rates and income) and the first-time home buyer tax credit.

HOW TO KEEP THE MOMENTUM GOING
1. Give a tax incentive to buyers of ALL HOMES and also allow multiple purchases and consider extending it past Dec 09 but DO NOT ANNOUNCE IT NOW.
2. Raise the tax credit limit to 15,000 dollars to give incentive in higher priced marketplaces who also have desperate sellers
3. Consider raising the conforming loan limits higher than $ 729, 750 in higher priced areas and also ONLY FOR A LIMITED PERIOD OF TIME.
4. If giving buyers credits on each home they purchase is not favorable,why not offer repeat home buyers a capital gains exception for as long as they own those properties.
5. There is no secondary market for jumbo loans so perhaps the Federal Reserve could help restore liquidity in this market by buying these loans under the TALF program.

CONCERNS:
1. 1 in 12 mortgages in the U.S. are delinquent.
2. There is a stark rise in prime loan delinquencies.
3. Continued lack of financing for jumbo loans (no secondary market and lenders fears that prices will continue to come down in that market).
4. Continued job losses will negatively impact delinquencies and foreclosures.
5. Interest rates have come off their lows and if this upward trend continues many buyers will not be able to afford to buy.
6. A 40 month supply of homes above 750K currently exist and that market has virtually no tax incentive,difficult financing if a jumbo is required, and buyers are still concerned prices will continue to fall so they are on the fence.

BREAKING NEWS-April Existing Home Sales Rise

2009-05-27T08:05:00.000-07:00

Connie appeared on FOX BUSINESS NEWS "Bulls & Bears" hosted by Liz Claman and David Asman to discuss the possible write-downs on home mortgages. Connie shared her concerns and also what she thought could further boost demand for housing. To see clip go to http://www.conniedegroot.com/ and click on Connie on TV- look for original Air Date: May 26, 2009.

BREAKING NEWS.......

April existing home sales rise by 2.9 percent nationally up from March.

The median sales price dropped to $172,000, down from $201,300 in the same month last year. That was the second-largest drop on record after January, when prices fell 17.5 percent.

Homes over 750,000 dollars currently have a 40 MONTHS SUPPLY OF HOMES.

Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008.

There are incentives in the low-end that have stimulated buying activity for several months now. Almost half the homes sold were distressed sales. Low rates, low prices, a first-time home buyer tax credit are all contributing factors to the boom in sales.

Now is the time to let your elected officials know that the tax credit should be extended to buyers of ALL HOMES. The pool of buyers will not increase overnight and we MUST INCREASE THE DEMAND so we need to get as many qualified buyers to buy now. We have little movement with homes over 750,000 dollars because we have higher loan rates, more challenging lender requirements, larger down payments required and banks are more reluctant to do jumbo loans since there is no secondary market. This market needs some help so if we could give a tax incentive this might get a few more homes sold. The limit should also move to up to 15,000 dollars and this should only be offered for a limited period of time to create urgency in the marketplace. Lawrence Yun speaks to creating a secondary market...

Lawrence Yun, NAR chief economist, "Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," he said. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."

Spread the word.....

Connie

First-Time Home Buyer Tax Credit: 6 Things to Know

2009-05-20T07:29:00.000-07:00

While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

written by Luke Mullins

Connie on Money For Breakfast at 4:45 am May 18, 2009!

2009-05-18T15:54:00.000-07:00

Connie appeared via Satellite on the morning show "Money For Breakfast" hosted by Alexis Glick to discuss California's deficit, the suggested selling of San Quentin, the Los Angeles Coliseum and the upcoming vote on May 19th which polls are showing most unpopular. Original Air Date: May 18, 2009. To view clip go to "Connie on TV".

HANNITY- Fox News Channel

2009-05-14T12:41:00.000-07:00

Clips from the "HANNITY SHOW" To view the segment just go to my website: www.ConnieDeGroot.com and click on "CONNIE ON TV".

Here are some of the comments received after the show.

Jane Hanson, Seaside CA
Dear Connie, we saw you last evening on the Hannity show and just want to tell you that you are NOT alone out here in CA!!! I was so happy to hear you say that People DON'T Get IT! It's getting more and more disheartening as the days go by and I"m so unsure of where our country is headed. Thank you for speaking up for us!

Sergeant Michael Bustamante, Anaheim Police Department

I just wanted to say I was impressed with your segment on Fox News Live. I felt you were very well informed and have a strong opinion about the economy, and housing situation. It was nice to hear someone making sense of this whole economic situation. (Responding to appearance on "Hannity")

Mark Hanlin

Connie, from the brief clip of you that I saw tonight, I have to say I was impressed--you presented your position well, with authority and expertise (not everyone can keep up with Hannity). My thoughts...gosh, where do I begin?? At the risk of sounding like a right-wing whacko, I must admit I'm concerned with the direction our country is taking, fiscally, politically, socially. And coming from 20+ yrs in the military, throw national security into that mix! I definitely think TARP was a BAD idea, and I'm supremely disappointed in the previous administration for setting us down that path. I've noticed over the past 10 or so years that I've become something of a news junkie, and now wish I'd paid more attention in Poli Sci class...! I will be very interested to see what happens in the next several years. (Responding to appearance on "Hannity")

Jim Morris

Connie, I just saw you on Hannity and wanted to send you a message. Right on target with your outlook on the economy and housing. Absolutely stunning also.

Steve Klar, ERGONOIC REALITIES

I saw you on Sean Hannity show tonight. You really had a lot of good thoughts on banks and how our tax dollars are being wasted on them. I agree with your conservative values.

Ray Ralston, Arizona

Hello Connie, I saw your interview on the Sean Hannity show the night of May 7th. You are right. Most people don't get what is happening to our country. Obama is marching us to Communism. The government is taking a little at a time.My son and I are trying to get into real estate investing over the last 2 years. Because of one thing or another, including me losing my job last July, and have not found one since, it has been a slow go. Now the government is changing the rules almost daily and making it extremely difficult to get any property. We may have found something just in the last week and are proceeding with an offer and hopes of a loan approval in a short time. This would finally be our first investment.

Maria Apodaca, California

Good Evening Connie, I saw you on Hannity this evening and I was very impressed with what you had to say. A conservative voice is very unusual in LA. I admire people who speak up and are not ashamed of what they believe. Thank you for taking a stand!

Tracy Grote, MAI, CCIM- TRACY GROTE & COMPANY, Austin Texas

Ms. De Groot, THANK YOU for presenting an aspect of the real estate industry to the public through your interviews on the various TV shows. As you may be aware, Costar stated today that during the 1Q2009, the commercial real estate brokerage firms are realizing a decline in sales and market activity. Whereas the housing market lead the way in the real estate downturn due to poor lending practices and underwriting, the commercial real estate market is next in line. Again, THANK YOU for presenting a logical, concise, real-world look at our present economic situation.

Connie in New York on "HANNITY"-

2009-05-11T12:38:00.001-07:00

I went to New York to do several shows and was fortunate enough to be on with Sean Hannity. I know that many out here in California do not share his opinions but it is my feeling that he presents both sides of an issue as he did the night I appeared. To view this segment that appeared on the FOX NEWS CHANNEL May 8, 2009 just click on the link!

Hannity Recorded May 7, 2009, FNC
Connie De Groot on Hannity (In studio) May 7, 2009

Things To Consider If You Are In Trouble- Foreclosure versus Short-Sale?

2009-04-26T13:31:00.000-07:00

Short-sales can preserve your credit but the process for the bank to APPROVE can take months and there is no guarantee that the bank will approve the request. If this is the route you plan on taking, be sure that you can afford to wait 3 or 4 months and keep current with your payments. If you think this may be a problem you need to have a plan B.

For the bank to forgive a loan amount they will require detailed information showing hardship. This process is not intended to be easy and it is quite often emotionally challenging for a homeowner.

In regards to allowing your home to proceed into foreclosure, know that this will hurt your credit and with standards very high and down payments for home much higher than in previous years, it could be worth trying to keep your home even if today it is worth less than when you purchased it. The fact is, for many, buying a home may not be a possibility for a very long time.

In either case, speak to someone you trust in this area before making a decision so that you are fully prepared for all that is involved.

March Existing Home Sales Numbers

2009-04-26T12:53:00.001-07:00

Clip Taken From my appearance on Fox Business "CAVUTO" April 25, 2009 responding to the latest housing numbers. Due to time constraints, some of the information below was not provided.

It is important to know that buyers are out there looking for deals! Over-priced homes are sitting but motivated Sellers are finding success. The largest number of sales are found in the low-end price ranges but there is recently more movement in the over 1 million market on homes priced aggressively!

Although nationally, home sales are down, in the Western region of the U.S. , sales continue to soar with sales volume 18.9 percent higher than March 2008! Lower prices, historically low rates, a first-time home buyer tax credit and a new home tax credit on purchases of NEW HOMES in California, are some of the contributing factors to these results. Business is booming for Wells Fargo who just announced they are hiring 5000 people due to the increased demand. They reported recently that volume has doubled what it was in the 4th quarter of 2008!

About 53 percent of the sales in March were distressed sales. With the banks so overwhelmed, buyers in many cases (such as when a seller is awaiting the bank to approve a short-sale) have to wait months for a response from the bank. Perhaps if the bank were able to process these properties faster, the number of sales would also show even more improvement.

I am hearing about unbelievable opportunities in California, in Arizona and Nevada. For those that have cash or can qualify for a loan, this is the time to go out and buy. Having said this, be careful and do your homework before you buy any property. There are still over-priced homes out there so you need to have someone with experience in your area of interest to advise you. And there is no point of buying something if you can not sleep at night because you overextended yourself. Buy what you can comfortably afford because you can always move up to a better situation later.

If you need assistance to find a realtor in your area of interest call me. I have found agents for buyers across the country or call your local Coldwell Banker office. I also have a list of questions you can ask of any realtor. Go to my BUYER & SELLER page.

Best regards,
Connie

Another Tax Credit For Homeowners!

2009-04-06T09:17:00.000-07:00

Perhaps you can not Sell your existing property to move up or move down but you can make improvements to your home and receive up to a $1500 tax credit for doing those improvements. This credit would be a once in a lifetime credit and it would reward homeowners 30 percent of the cost up to $1500 and it would be offered until 2010. This credit existed before but it was much smaller so this is a good improvement. This credit is for energy-efficient items such as doors , window, roofing, insulation, air-conditioning systems and heating pumps. For more information contact Connie De Groot at connie@conniedegroot.com!

Connie on CASHIN' IN- Fox News & Fox Business

2009-04-05T10:26:00.000-07:00

Connie spoke with host Terry Keenan and Wayne Rogers on the show CASHIN' IN which aired on both Fox News and Fox Business on April 4, 2009. The discussion centered on housing and the spring selling season. Connie offered positive insight into markets that are showing strong results while Wayne Rogers voiced his concerns. To view clip click on:
http://www.youtube.com/watch?v=I0TbvVHxr1M

Connie on FOX NEWS Saturday at 8:30am

2009-04-02T12:24:00.001-07:00

Hello Again,

I hope you had the opportunity to read my first blog today with some GOOD NEWS on housing. I will be on the show, CASHIN' IN on the FOX NEWS CHANNEL this Saturday at 8:30am. speaking about the spring selling season. I will be stressing the positive signs because they do exist. And I welcome your feedback.

Yes, there are still problems and yes it will take more time but the good news is that there is good news and with other leading indicators also looking better, many more buyers do seem to recognize that there is a real buying opportunity now or that we are very close to a bottom.

SPRING IS HERE AND SO IS SOME GOOD HOUSING NEWS!

2009-04-02T11:57:00.000-07:00

Everything is not perfect but there are some reasons to be more optimistic so here is some good news:

HOUSING DATA:

Pending Homes Aales index was up 2.1 % in Feb over Jan but still a little lower than Feb 08
Existing Home Sales up 5.1% in Feb
Sales of New Homes were up 4.7 % in Feb from Jan.

NAR says that with falling prices, low mortgage rates of about 5 percent, home ownership is more affordable than it has been since 1970. Housing afford ability index rose .9 % to a record 173.5% more than 36% higher than a year ago.

Loan rates on conforming loans now at historical low levels, housing is now more affordable than it has been in years!

Pent up demand- many buyers have been on the fence waiting for a long time due to lack of confidence and now with some positive signs in housing, the stock market, low prices and loan rates, many are becoming more confident and tempted to buy.

First-Time Buyers and Investors are out there buying. First-Time buyers accounted for about half the transactions in Feb and typically buy entry level homes and are looking for a deal. Investors are also out there buying and that is a good sign - some homes now offer an investor immediate positive cash flow.

Data is showing that in Areas where the "price is right" buyers are responding.

In California: In San Bernardino County units sold are up over 87 percent over Feb 08 Los Angeles County units sold are also up about 32 percent over Feb. 08. San Diego County had a number of sales, year over year, that was up for 8 months and all but one of these months were double digit increases.

There are homes for sale today that are less than half what it would cost to build today!

There are also tax incentives here for example in California for purchases of new homes and also incentives for first time home buyers nationwide.

With the government spending so much money inflation could be on the horizon so investing in hard assets will be important to preserve wealth.

Now have a good day!
Connie

CONNIE on with NEIL CAVUTO- Fox Business Mar 27, 2009

2009-03-29T10:32:00.001-07:00

"IT'S THE APPRAISAL STUPID", says Neil Cavuto.
Click on this link to see: Hoping for a Housing Boom

Too many times Sellers are waiting until after they have accepted an offer to purchase before knowing if the buyer will be able to get a loan for that amount. Will the home appraise and what will happen if it does not?

These questions and more were discussed with Connie De Groot, Coldwell Banker Real Estate Broker in Los Angeles, and Jonathan Miller, Miller Samuel Inc. Real Estate Appraisers & Consultants- New York City.

Buyers Are Buying But Is It Happening Everywhere?

2009-03-24T08:03:00.000-07:00

THE RECENT DATA DOES SHOW THAT BUYERS ARE BUYING! IT SEEMS AS THOUGH WE HAVE A BIFURCATED MARKETPLACE IN WHICH LOW END HOMES, (ESPECIALLY THOSE UNDER 300,000 DOLLARS) ARE SELLING WELL AND HIGH END HOMES (HOMES OVER 1MILLION) ARE SITTING. THIS ALMOST "ALL OR NOTHING" MARKETPLACE CAN BE EXPLAINED IN PART AS FOLLOWS:

1. BIG INCENTIVES FOR FIRST-TIME BUYERS!
First-time buyers accounted for half of all home sales last month!(NAR) They are typically entry level buyers looking for bargains and they are finding them since 40 to 50 percent of the transactions in Feb were distressed sales. . Distressed sales are also found to sell for approx. 20percent less than the normal market price. With a national supply of housing at 9.7 months supply, this trend could continue. Couple this incentive with the 8000 dollar tax incentive for first- time buyers and for California Residents on purchases of new homes, an up to 10000 dollar tax credit (effective Mar 09) this is a great time to buy if you are qualified.

2. LOAN RATES ARE AT HISTORIC LOWS (AND NOW JUMBO LOANS ARE COMING DOWN)!
According to Freddie Mac, for a 30 year, conventional, fixed-rate mortgage, last month's average mortgage rate was the second lowest since data collection began 1971. Rates have been high for jumbo loans and lenders have been reluctant, up until recently, to do them so many of these buyers could not afford to buy high end homes. The climate does seem to be improving for these types of loans with rates in the mid 5's.

3. WHEN PRICES COME DOWN - BUYERS RESPOND- BUT IT MUST BE A "DEAL"!
Existing- home sales in the West of the country increased 30.4 % over Feb 08
The Median price in the West of the country dropped 30.3 % from Feb 08
Sales in Los Angeles 32.4% higher than Feb 08 and the Median Price Change: Down -38%
Sales in Riverside 59.3 % higher than Feb 08 and the Median Price Change: Down -41.5 %
Sales in San Bernardino 87.1 % higher than Feb 08 and the Median Price Change: Down -47.2 %
Sales in SoCal 41.3% higher than Feb 08 and the Median Price Change: Down 38.7%
Sales in the Bay Area 26.1 % higher than Feb 08 and the Median Price Change: Down -46.20 %
In the Southland, foreclosure re-sales accounted for 56.4 % of Feb resale activity.
In the Southland, Government-insured, FHA mortgages made up about 38 %of all purchase loans in Feb compared to 6.4 percent in Feb 08.4.

4. WHEN WORD GETS AROUND MOMENTUM BUILDS.
Just as many purchased homes years ago because they heard about all the money others had made in real estate when the market was going up, it does seem apparent that more and more buyers are looking seriously at the opportunities that do exists today- Great Deals, historically low rates and an enormous selection of inventory. True Story:I know a broker in Phoenix that put in an offer on a bank owned house for 60,000 which was close to the asking but he was up against 10 other buyers. Stories like this are tempting me to go home shopping in Phoenix or areas where the "price is right".

Is this a good time to buy? Well The S&P/Case-Shiller U.S. National Home Price Index reported prices dropping 18.2% for the year. It was the greatest loss recorded in the report's 21-year history. Prices dropped in every one of the 20 cities studied.

Today's Real Estate News

2009-03-16T10:57:00.000-07:00

San Francisco Chronicle: Is Seller Financing a Boom or Bust?
By Betsey Schiffman
03/13/2009
Listings using the term “seller financing” have increased in recent months, as more sellers try to distinguish their homes from others.

Reuters: BofA seeks more jumbo mortgages: report
03/13/2009
Citing the company’s “balance-sheet capacity,” Bank of America today announced it is seeking to produce more jumbo mortgages.

Inman: ‘Foreclosure’ Web searches near 3-year peak
03/13/2009
Online searched-engine queries including the phrase “foreclosure” have increased in recent weeks, according to a Web metrics company.

Some Details On The Housing Plan Which Aims To Help 9 Million Homeowners

2009-03-05T12:42:00.001-08:00

Some of the points:

1. It is limited to borrowers who owe up to 5 percent more than their home is currently valued. So if you are under water by a greater percent you most probably can not take advantage of this program.
2. Some California cities like Modesto and Merced have a rate of about one out of every 10 homeowners that will not qualify because they have a mortgage in which they owe more than 50 percent than their home is currently worth.
3. A large number of homeowners that will not qualify for this program are in the hardest hit states- California, Florida, Arizona and Nevada.
4. Of the nearly 52 million homeowners with a mortgage, almost 14 million (27 percent) owe more on their mortgage than the home is currently worth and this is according to Moody's Economy.com. In Nevada almost half of all borrowers are "under water" as of December 2008 according to First American CoreLogic.
5. The modification program lasts until 2012 and borrowers who are eligible must provide their most recent tax return and 2 pay stubs, as well as an "affidavit of financial hardship" to qualify.
6. Borrowers are only allowed to modify their loans once and mortgages for single family homes above $ 729,750 are excluded.
7. Lenders may reduce rates to as low as 2 percent for 5 years but after that the rate will go to about 5 percent until the mortgage is paid.

I will continue to post updates on this topic.

FROM HOPE TO HOPELESS- by Connie

2009-03-02T12:14:00.000-08:00

PRESIDENT OBAMA RAN MUCH OF HIS CAMPAIGN ON THE WORD "HOPE". THESE PAST FEW WEEKS HIS MESSAGE HAS BEEN QUITE THE OPPOSITE. NOW SOME HOME SELLERS SAY THEY FEEL THERE IS NO "HOPE" OF SELLING.

HELP and HOPE EXISTS ON THE LOW END BUT HIGHER END HOME OWNERS ARE SUFFERING.

Disappointing Data gathered from the MLS for Beverly Hills Zip 90210 and only for Single Family Residence AND only from January 1 to March 1 of each year.

2007 49 Sales over 1 million dollars
2008 25 Sales over 1 million dollars
2009 9 Sales over 1 million dollars

It is common to find that a buyer can not qualify for a loan or that they want to cancel an escrow because the daily news is so unsettling. What I did not expect is for Sellers to call me and tell me they want to take their home off the market because there is NO HOPE of selling in this market.

1. At the start of this year I experienced a lot of activity and optimism due in part to hopes for this new President.
2. With the Stimulus being discussed, the bad news increased and the message of hope was lost. 3. Buyers seem to be disappearing especially from higher end markets, and now most recently, many sellers are feeling hopeless and want to give up trying.
4. This is dangerous since some of these sellers have little equity and waiting may bring more of these Sellers to foreclosure if they do not qualify for assistance.
5. California Home Sales are very strong in the low end hard hit areas because of the obvious deal-great prices, tax incentives to first time home buyers of 8000 dollars, a California state tax credit of up to 10,000 dollars for the purchase of a new home and both the federal tax incentive of 8000 and the California state tax credit of 10,000 can be taken by a buyer who qualifies for both.
6. Unless we have some real incentives like better rates for jumbo mortgages or investment tax credits to reward those that are taking a risk buying today, the higher end will continue to suffer.
7. Sales of existing, single-family homes soared 100.8 percent in January in California, and the median price declined 40.5 percent, accordingto the latest report from the CALIFORNIA ASSOCIATION OF REALTORS®.

HIGH END HOUSING UPDATE

2009-02-20T08:19:00.000-08:00

Million-dollar home sales plummet in Golden State
February 3, 2009

California million-dollar home sales plunged last year to their lowest level in five years, the result of a bone-dry mortgage market for prestige-home financing, as well as a decline in the value of many homes just over the million-dollar threshold, a real estate information service reported.

A total of 24,436 Golden State homes sold for a million dollars or more last year. That was down 42.5 percent from 42,506 in 2007. It was the lowest sales count since 20,595 were sold in 2003. In 2006 the $1 million-plus total was 50,010, in 2005 it was 54,773, and in 2004 it was 36,990, according to MDA DataQuick.

Total California home sales - including all price levels - increased 2.5 percent last year, to 393,703 from 383,748 in 2007. Of last year's sub-$1 million sales, at least 2,052 homes had previously sold for more than a million. One in sixteen homes sold for a million dollars or more last year; the year before it was one in nine.

"Discretionary spending in the housing market has pretty much been on hold the past fifteen months. The core of last year's distress was clearly in affordable areas that had a lot of turnover in 2005 and 2006. That distress could migrate up the price ladder if this recession proves nasty for high-income households," said John Walsh, DataQuick president. "A lot of home sales in the upper half of the market have been on hold for months, waiting for financing," he said.
While the number of home purchase mortgages below the old $417,000 conforming limit increased by 21 percent last year, the number above decreased by 51 percent, DataQuick reported.

Statewide, there were 608 sales for more than $5 million last year, 386 sales were in the $4-$5 million range, 963 in the $3 million range, 2,899 sales in the $2 million range, and the rest between $1 million and $2 million. The 608 sales for more than $5 million was a record high, up 7.6 percent from 565 in 2007.

The most expensive confirmed purchase was a 11,407 square-foot 6-bedroom, 10-bathroom Bel Air house built in 1926 which went for $38,000,000 in October. The largest home was a 4-bedroom, 8-bathroom 20,000 square-foot house in Corona Del Mar in Orange County. The sales price was unavailable, but the April purchase was financed with a $17.6 million mortgage.

Most $1 million-plus condos were sold in San Diego, Los Angeles and San Francisco.

The median-sized million-dollar home was 2,494 sq.ft. with 4 bedrooms and 3 bathrooms. The median price per square-foot for all million-dollar homes was $569, down 3.3 percent from $588 in 2007.

Around 24 percent of the $1 million-plus buyers paid cash, up from 14 percent in 2007. In the over-$5 million category, more than half of the purchases were cash. Of those who did finance their purchase, the median down payment was 30 percent of the purchase price. Lending institutions most willing to provide mortgage financing were Wells Fargo, Bank of America and Union Bank.

Area Number Sold 2007 Number Sold 2008
90210 Beverly Hills 275, 192
90049 Brentwood 332, 219
90272 Pacific Palisades 303, 214

Inspiring The Nation Would Help-by Connie

2009-02-17T13:13:00.000-08:00

CONFIDENCE IS DIFFICULT TO FIX BECAUSE IT IS EMOTIONAL. IF PRESIDENT OBAMA WERE TO AGAIN FOCUS ON INSPIRING THIS NATION, IT MAY CAUSE SOME TO MOVE FORWARD AND INVEST -AND THAT COULD GO A LONG WAY TO HELP THIS STRUGGLING ECONOMY AND HOUSING.

As an citizen of this country, I wanted to share my thoughts:
This is a nation that believes in and supports the power of the INDIVIDUAL to change his or her life, cause change in this nation or influence the world.

President Obama, long before he said to the country “Yes We Can” he probably said to himself- “Yes I Can”. If he can become President of this great nation, then perhaps more of us can find ways to meet our needs and even surpass our goals.

We always have the power to change if we believe that we can.

Let's not forget that this country has always offerred people hope for a better life. And people keep coming to this country because of the unlimited opportunity that exists to those who are willing to work hard. When we start to change our basic principals we will change the ultimate potential our market can offer.

By the way, I lived in Europe for approximately 7 years and although I enjoyed the experience, I would never replace our system with anything I experienced anywhere in the world.

Fed Chairman Bernanke Testifies on TARP Performance and Credit Turmoil

2009-02-11T13:13:00.000-08:00

Written by: Ken Sweet FOXBusiness

In his testimony in front of the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke said Tuesday that the central bank’s new lending programs have eased some of the extensive problems in the credit markets, but banks should not be expected to immediately start lending.
The testimony is part of the Congress’ inquiry into the performance of the $700 billion TARP program and sharp decrease in lending since markets froze late last year. Chief executives of major financial houses, including Goldman Sachs (GS: 94.7301, 4.1201, 4.55%), Morgan Stanley (MS: 22.94, 1.84, 8.72%), Bank of America (BAC: 6.08, 0.51, 9.16%) and Citigroup (C: 3.65, 0.25, 7.35%), will testify on Wednesday.
In his testimony, Bernanke the Federal Reserve has been “encouraged” by the response of these newly created programs, including facilities to purchase commercial paper, asset-backed securities, credit card securities and student loans, and said the programs could be expanded to additional classes of investments if warranted.
“The Federal Reserve has responded forcefully to the financial and economic crisis since its emergence in the summer of 2007,” Bernanke said.
Since the passage of the $700 billion TARP rescue program, there has been heightened criticism from both Washington and the general public that banks are not lending enough to keeps the economy going. Consumer credit levels have declined month over month, according to the Fed, and anecdotal evidence has come from small businesses that lending is not available.
Bernanke said that despite many banks’ access to these additional programs, “concerns about capital, asset quality, and credit risk continue to limit the willingness of many intermediaries to extend credit.”
Despite the banks’ alleged unwillingness to lend and the decline in the stock markets, Bernanke said that certain parts of the credit markets -- including mortgage rates and agency debt -- have improved. Money market funds have begun to see “modest inflows” since the government instituted stabilization measures in September.
Bernanke continued to emphasize that the central bank has additional tools available at its disposal now that its key lending rate is now at its “effective floor.”

Connie On Fox Business "Bulls & Bears" with Dave Asman Dec 24, 2008

2008-12-29T15:12:00.000-08:00

Connie appeared on Fox Business "Bulls & Bears" with anchor Dave Asman to discuss the recent increase in re-financing due to the most recent lowering of rates. Will this help housing? Connie De Groot and Greg Rand of New York were once again asked to comment on this issue. You can view the entire segment by visiting http://www.conniedegroot.com/ and click on "Connie on Tv".

Comment's On Connie's Blog Dec 5, 2008

2008-12-05T14:25:00.000-08:00

"I like the ideas as they would certainly encourage people to buy now and create confidence in the market which currently is not there. The people who are now in the market to buy are unsure of what might be ahead for housing prices and rates, and this would be a way for them to hedge against any potential losses."
Jeff Sclesinger-Priority Financial Network
818-385-1970
http://www.jeffschlesinger.com/)

"It would work in theory but there are other factors that would recreate the same mess we are already in without any regulation."
John T.

"Capital gains idea is great. There also has to be a happy medium between handing out credit to everyone, and the current locked upsituation."
Ed R.

Treasury's Low-Rate Mortgage Plan- Would This Help Housing?

2008-12-05T11:37:00.000-08:00

Reducing rates will increase demand but lenders need to relax their guidelines or many ready willing buyers will be turned away. An attractive rate would get some buyers off the fence but with most buyers thinking tomorrow's prices will be better, I think additional incentives are needed. Also, if buyers think lower rates will be around for awhile then there will be no real urgency to buy today.

Here are my suggestions to GET BUYERS TO BUY NOW:

Lower mortgage rates but make it for a limited period of time.

Eliminate all capital gains on all existing homes purchased within the next 12months under 1 million dollars for as long as they own the property and withno limit on the number of purchases.
All buyers receive an investment tax credit equal to 10 percent oftheir down payment up to 20 percent down. This concept would immediately create additional demand and help stabilize the decline in housing prices.

The Capital Gains exemption would cost taxpayers almost nothing and for 1 trillion in sales,the investment tax credit would cost 20 billion dollars. This is a very small amount compared to the numbers we hear about every day.

This incentive will offer a future reward to buyers who buy now. It will offset the risks of buying today when many think things will continueto decline tomorrow and it will help all home owners and builders by helping to set a floor on housing prices. Increasing demand will help stabilize prices and help preserve homeowner equity and keep more loans from defaulting.

Home Builders Make Plea for Federal Aid

2008-11-24T11:53:00.001-08:00

I went on Fox Business a few weeks ago to speak about 2 ways I believed would help increase demand in housing. Although my idea will not solve every problem demand will help set a floor on housing and begin to effect all those that are dependent on housing. The idea was to eliminate capital gains on any home purchased within the next 12 months and to also offer an investment tax credit of 10 percent of any down payment up to a 20 percent down payment. This would not require a person to have the home be their primary residence and would not limit the number of purchases or length of ownership.

This article just came out in the Wall Street Journal today. I have only posted parts of that article.

NOVEMBER 24, 2008

Wall Street Journal
By NICK TIMIRAOS

The builders' lobby is ramping up its sales pitch for a $250 billion stimulus package called "Fix Housing First," arguing that financial markets won't recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner's mortgage rate.

Congress resisted a similar effort to pass a larger tax credit earlier this year, instead creating a $7,500 credit for new-home purchases that had to be paid back over 15 years, effectively extending an interest-free loan.

The homebuilders' proposal would offer home buyers a tax credit equal to 10% of the home's value, capping it at $22,000, nearly three times the $7,500 credit Congress offered to new buyers earlier this year. Builders say the earlier credit didn't work because it wasn't big enough and had to be repaid.

Builders also want subsidies for interest rates on 30-year fixed-rate mortgages for government-backed "conforming" loans, which currently are around 6.2%, to bring rates down to 3% for loans made in the first half of 2009 and 4% for those in the second half of the year.

A rate reduction of about 1% on a 30-year mortgage typically costs the lender -- in this case the government -- around 4% of the principal. So a 2% buy-down on a $200,000 mortgage would cost $16,000. The NAHB estimates the subsidy portion of its proposal would cost the Treasury $143 billion.

Other critics say that while a large tax credit could motivate buyers to get off the fence, it would do nothing for homeowners unable to refinance mortgages they can't afford, which is arguably a bigger problem.

One idea with broader support -- but with a potentially bigger price tag -- is an interest-rate buy-down that would allow existing homeowners to refinance to lower rates. Chris Mayer, senior vice dean of Columbia Business School, has suggested that the government push interest rates down to 5.25% for homeowners who prove that they can afford to live in their new homes and can document their income.

Eliminate Capital Gains Tax On Any Home Purchased For The Next 12 Months!

2008-10-27T14:48:00.000-07:00

There have been extensive bailouts this past year and there could be more to come. Tax payers can not afford to keep throwing money at every problem. ELIMINATING CAPITAL GAINS ON ANY HOME UNDER $1 MILLION PURCHASED WITHIN THE NEXT 12 MONTHS for as long as they own the property will not require one more penny of tax payer's money and it will help set a floor on housing. This should be considered.

1. All buyers receive an investment tax credit equal to 10 percent of their down payment up to 20 percent down. These parameters could be of course modified but the concept would immediately create additional demand and help stabilize the decline in housing prices.

2. Demand drove prices up so increasing demand is part of the solution. An elimination of a capital gains tax on housing could cause many investors to reconsider real estate as a good investment by removing some of the risk in this uncertain marketplace. Since prices have adjusted downward and interest rates are quite attractive this one extra ingredient could move more buyers into buying even in those areas not as effected by foreclosures.

3. It will keep things from becoming worse and it will keep tax payers from continuing to bail out more bad loans and desperate companies.

4. The foreclosure market has attracted many buyers but other homeowners, not yet facing that burden, are in need of help to sell now. Eliminating the capital gains tax for purchases will cause investors and insecure buyers to see this as a unique buying opportunity with attractive future benefits. This will keep some distressed sellers from becoming another foreclosure statistic and from prices declining further.

If I Can't Sell My Home, I Will Lease It!

2008-10-27T14:05:00.000-07:00

The number of able and willing buyers has drastically declined but if you are one of the lucky Sellers to receive an offer, my recommendation is to do your very best to make it work.

Many home owners are growing tired of waiting for "the offer" and/or having to repeatedly reduce their asking price. So it has become a popular trend to lease and to try to and sell the home later when the market recovers. It seems that many feel the process of finding a good tenant is easy. Well, I should know since I have lease listings and have been working with clients looking to lease and believe me, it is not an easy task and it can be more complex than an actual purchase! Moreover, tenants in today's market want something in tip-top shape and they want it to be at those "deal" prices. They are not willing to spend money to make any changes to a property they do not own thus they commonly request that landlords make improvements to the property such as repairs, painting, new carpeting etc. before they agree to lease.

All property owners should be aware that there are risks involved such as, a tenant may not pay or may be responsible for serious damage the deposit does not cover or you may be trying to once again lease or sell in a market that is more troubled than before. The decision to lease a property should not be taken lightly or it could be a costly mistake.

Feel free to send me an email with your questions. I am here to help in any way I can.

Connie

Tips To Get The Job Done If You Must Sell Now

2008-09-23T14:07:00.000-07:00

You do not always need a lot of money to increase the value of your home.

In these troubled times, most of us can not afford to pay a stager thousands of dollars to design the interior spaces. Here are some thoughts to get your property in tip top shape without breaking the bank!

1. First, get informed as to "what's hot" and "what's not" by visiting other open houses in exclusive neighborhoods nearby. You will quickly see what colors they have on the walls, how furnishings are positioned and you will definitely get some good ideas for decorating your own home. Ask the agent if you may take photos so that if you are having a contractor or handyman copy something, they will have an excellent idea of what you are trying to achieve.

2. You may also do as I have, visit exclusive interior design shops. Again, go into the high-end shopping areas for the best and most recent innovations in home design. You will find sample kitchens and bathrooms that will provide so many ideas and of course you can ask the sales associates about the materials used. You may also elect to purchase some items that will have a large impact and that can not be easily reproduced.

3. Pay for a consultation from a designer in a shop you appreciate or ask a friend to recommend someone. This could be very valuable since they will share ideas and that may be enough for you to move your home in the right direction.

4. Don't forget a resource everyone has.... your friends and family. If you need furnishings and do not have the money to afford them, ask each of your friends to lend you 2 pieces. If you have 4 friends that would give you 8 lovely pieces to add to your home. You are also inviting your friends and family to help you in this process and helping those we care about feels good.

5. Remember that many buyers make up their minds on a property at the CURB and spend the rest of the time trying to justify that FIRST IMPRESSION. Stand at your curb and see how you can improve the overall look and feel of your home and also exam if the exterior of your property matches the interior theme.

6. Paint, Paint, Paint. If you can not afford to paint a tired exterior paint just the trims or the decorative pieces along side the windows. The fresh paint will provide a good contrast and liven up the overall feel of the house. Paint in neutrals for the interior and use darker colors for rooms that are very very large and lighter colors for small rooms and spaces. Always keep in mind that you wish to attract the most buyers possible so keep your selections to calming neutral colors. Again, you can go to open houses and design shops for references.

7. Repair or Replace the Front Door: In searching for a front door do not forget to look on-line since just about everything is sold on-line. You may find an antique! If you do elect to keep your front door perhaps changing the hardware or painting would improve the overall appeal.

8. Small rooms or odd shaped spaces: These areas MUST be defined with decor or the buyer will not give that area any value and this will be reflected in the offer. Moreover, they may not believe the space could be used and that is why the use must be shown.

9. Lighting: Recessed lighting is costly but you can invest in table and floor lamps and spot lights for very little today. Again, this will lighten up the space, provide warmth expected in a home and also make a smaller space feel larger. Perhaps you have enough lighting fixtures and all you need are bulbs with a higher voltage.

10. Outdoor Living Spaces: Many homeowners are now using their outdoor areas as an extension of their home. If you have a small yard a buyer will see that as a negative. If you decorate the area with charming outdoor furniture, some candles, etc. this space will become a positive. The buyer may think, " Wow, we can sit under the stars and have dinner!" See how a little shift can turn a negative feature into something positive and don't forget, it will also add additional value to the property.

11. Lastly, make everything look and smell clean. For example: Be sure your kitchen & bathroom sinks are free of dirty dishes and debris, all fixtures clean, your trash cans emptied, tables and chairs free of clothes and clutter, etc.

Good Luck to Everyone!

Connie De Groot

US Stocks- Extraordinary Rescue Effort Spurs Wall Street Rally

2008-09-19T16:38:00.000-07:00

NEW YORK, Sept 19 (Reuters) - Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week when the financial landscape underwent the most dramatic reshaping since the Great Depression.

The benchmark S&P 500 index had its biggest two-day rally since October 21, 1987, two days after the 1987 stock market crash.
Led by U.S. Treasury Secretary Henry Paulson, officials are working on a solution to mop up hundreds of billions of dollars worth of bad mortgage debt.
In another extraordinary action, the United States joined the United Kingdom in temporarily banning bets that financial stocks will fall, while the Federal Reserve said it will use $50 billion to back money-market mutual funds.
The moves came at the end of an agonizing week for Wall Street, in which Lehman Brothers filed for bankruptcy, insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) was bailed out by the government and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) was forced into a shotgun marriage with Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz). Investors had worried that the confluence of crises severely threatened the stability of the U.S. economy.
But even with the furious two-day rally, stocks still ended essentially flat in a week marked by extreme volatility -- with the Dow plummeting more than 500 points on Monday, only to rise on Tuesday and drop again on Wednesday.
"The government plan is seen as a comprehensive solution rather than a series of ad hoc, piecemeal moves," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey, noting that the ban on short-selling was also contributing to the surge in financial stocks as short sellers bought stocks to close out their positions.
An S&P index of financial stocks jumped 11.1 percent.
Short sellers, who profit when stocks fall, have been blamed for contributing to the demise of Lehman Brothers and the steep declines in other financial stocks this year.
The Dow Jones industrial average .DJI closed up 368.75 points, or 3.35 percent, at 11,388.44. The Standard & Poor's 500 Index .SPX advanced 48.57 points, or 4.03 percent, to 1,255.08. The Nasdaq Composite Index .IXIC shot up 74.80 points, or 3.40 percent, to 2,273.90.
Shares of Washington Mutual (WM.N: Quote, Profile, Research, Stock Buzz) surged 42.1 percent to $4.25 after the Wall Street Journal reported that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) was considering making a bid for the U.S. savings and loan. Citigroup shares leaped 22.7 percent to $20.65 on the New York Stock Exchange.
Shares of Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), punished earlier this week as investors fretted about the outlook for the last two remaining U.S. investment banks, jumped 20.7 percent to $27.21. Shares of rival Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) climbed 20.2 percent to $129.80.
Morgan Stanley's talks with Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), China Investment Corp and other institutions continue, a person familiar with the matter said, though the rebound in its securities gives the investment bank more time to consider its options. Wachovia's stock surged 29.3 percent to $18.75.
Trading was heavy on the New York Stock Exchange, with about 3 billion shares changing hands, far above last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 3.8 billion shares traded, also trouncing last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 7 to 1 and on the Nasdaq, by about 2 to 1. (Additional reporting by Steven C. Johnson; Editing by Jan Paschal)

Source: Thomson Reuters 2008

Back To Basics

2008-09-08T14:18:00.000-07:00

This past year has been challenging to many but it has offered powerful lessons as well. Many first-time home buyers are struggling with unsatisfactory loan terms of which some will be forced to make difficult decisions that will have long lasting effects. Here are some basic tips to keep in mind if you are out there now looking to buy:

1. Do not proceed if you can not COMFORTABLY afford to handle this financial obligation. Carefully read the loan documents and have them also reviewed by someone you trust.

2. Plan and SAVE for the unexpected. Have reserve accounts for life's surprises.

3. Do not buy on impulse! Take time to inspect a home and the neighborhood. Be sure you have looked at comparable homes in the area to be sure you are not over-paying.

4. Try not to buy on a busy (noisy) street.

5. Try to avoid buying a home with more than 2 levels

6. Try to avoid buying a home that has too unique a floor plan or style that is hard to change.

Remember, one day you may want to sell the property you are buying today so think not only as a Buyer but also as a Seller! In a healthy market, almost anything will sell but in a market like today, those same properties suffer the greatest losses. Since one never knows when they may have to sell, it is best to go for the best location and most popular style home you can afford. If you keep these basic points in mind and surround yourself with experienced professionals, you should do well in any market.

Good luck and Good Fortune to all!

Washington To The Rescue?

2008-07-30T18:25:00.000-07:00

Since the elimination of sub-prime loans and the ever increasing challenges to obtain a loan, many willing buyers are struggling to purchase a home today. The result is that the national inventory of available homes is at about an 11 month supply. The steady increase in inventory and growing trend of desperate sellers reducing by large amounts will further be a downward pressure on the housing market unless something comes into play soon.

There needs to some replacement program to help get some buyers back in the marketplace and also more alternatives to keep homeowners in their homes.

The housing bill circulating in Washington, could help set a floor on the housing market by enabling more homeowners to stay in their homes. Slowing down the increasing inventory is one of the first steps to help stabilize markets and that is something every homeowner wants to have happen.

Moreover, the up to $7500 credit to first time home buyers will make it a little easier for those that are having trouble with current guidelines. The big question will be how many people will qualify for these programs because that will determine the effects on the housing crisis.

Your comments and opinions are welcome.

Add a Touch of Europe to Your Home: Build a Wine Cellar

2008-07-07T12:47:00.001-07:00

Wine is becoming increasingly popular among Americans, and many homeowners are choosing to complete their luxurious homes with a classy wine cellar. Fortunately, although many factors must be considered before installing a cellar, there are several companies in the area that will guide you through the process. To help you determine whether a cellar will be a worthwhile investment for your home, I will tell you the basics of what you will need so that you can.

Wine is a very delicate and fussy item to properly store. Above anything, the temperature at which you store the wine is absolutely essential: storing wine at the wrong temperature greatly affects the flavors and aromas. Temperature fluctuation—when the wines experience hot and cold—is the worst for the wine’s health.

Therefore, you want to keep your wines in a steadily cool environment. Generally, the optimal temperature for red wines is around 55°-60°; the ideal temperature for white wines is from 49°-56°.

The reason why almost all wine cellars are located in basements or on the lowest floor is because heat rises, even through floors. The lower to the ground that a room is, the cooler it remains. If you have an empty basement, you’re in a great position to build a cellar. If you do not have a basement or have little room on the lowest floor, a cellar may not be a great fit.

Otherwise, you must also pay careful attention to how the coolness and moisture are kept in the wine cellar area:

Insulation keeps it cool. Fiberglass or rigid foam are common options. These materials are less porous than regular foam, keep a steady climate and protect against harsh winters and hot summers. Additionally, the thicker the walls, the better. Consider using a 2 x 4 or 2 x 6 sizes.
Ventilation airs it out. You must do everything that you can to keep heat away from the bottles. You may need a vent fan to move the energy generated from the environment and the electrical away from the cellar area. The cellar will also need unobstructed airflow.
Electrical keeps it running. Most cellars, like refrigerators, require a significant amount of electricity. Make sure that you have at least a 20-amp circuit that can handle upwards of 110 volts.
Floors keep out mold. The reason why cellars often have floors of slate, tile, or marble is not just because those materials look better but because they are non-porous and will not mildew. As you know, moisture and carpet or wood do not mix well. If you have carpet or wood floors, you will have to replace them.

Of course, you will need some space for the cellar itself as well as moving around and sitting down to drink the wine. But wine cellars come in many sizes and can be custom-built. For more information regarding installing wine cellars, visit http://www.vintagecellars.com/howto.asp or http://www.vinotheque.com/index.html.

**Thanks to vinotheque.com for providing great information

Want to Buy a Retirement Home? Use Your 401(k) or IRA.

2008-06-30T14:33:00.000-07:00

With a bleak national economy, many investors are looking for alternatives to maximizing their earnings and retirement savings. A novel way is to use your IRA or 401(k) to purchase a property. Ideally, you can use some of your retirement funds to purchase real estate and earn tax-deferred income from those properties. However, using retirement funds to invest in real estate isn’t necessarily a total goldmine—with the benefits come several caveats.

Who can use IRA’s or 401(k)’s to buy real estate?

Most people who are full-time employees and can prove firm financial standing are eligible to purchase real estate with retirement funds from their 401(k)’s or IRA’s.

What types of properties can I purchase with my retirement accounts?

It is important to realize that this feature of IRA and 401(k) accounts is purely a tool for investment—not home-buying. That is, you can purchase rental homes, condominiums, raw land, and commercial real estate. But you cannot use your retirement accounts to purchase your home or even any other home that you intend to spend time in (that includes vacation beach condos and ski lodges). And you cannot get around this stipulation by putting the homes in a relative’s name: purchases for relatives are also prohibited.

Nevertheless, you can “invest” in a home that you intend to use upon retirement, so long as you prove it is for investment purposes by renting or leasing it out to an outside party for the meantime.

How can you begin to buy real estate with your retirement accounts?

In order to set out independently as a real estate entrepreneur, you must set up a self-directed IRA, which allows you to direct your own retirement funds. You will need consultation from an approved IRA custodian.

What are the drawbacks of purchasing property with an IRA or 401(k)?

First, you do not have unlimited access to your retirement accounts (this is a government safeguard for your own good!) You may be limited to a $10,000 withdrawal, and you may be subject to tax penalties if you withdraw before you are 59½.

Another important caveat is that that you do not borrow from your IRA or 401(k), you withdraw. That is, once you take the money out, you can never get it back. If you are like most people, you want to be extremely conservative with your retirement piggy bank, because there is nothing after that money, and once it’s gone, it’s gone. Therefore, you should really only purchase property with your IRA or 401(k) if you will be very financially comfortable upon retirement and if you are absolutely confident that your real estate venture can earn you at least a marginally higher return on your investment account.

You should also keep in mind that once you open a self-directed IRA, you will basically be out on your own. Although you will have an IRA custodian, your money will be in your hands. Only take on this venture if you really feel the entrepreneurial spirit and only if you really want to handle your retirement funds.

Yes, investing in real estate may be a more active and lucrative way to maximize your retirement funds. But you will also be tossing around a very delicate nest egg that can easily fall on the ground in a tough real estate market like this. No matter what, you should consult an independent financial advisor before taking any action.

**Sources: marketwatch.com, activerain.com

Connie's TV Update

2008-06-26T14:50:00.000-07:00

Connie is appearing on local and national media all over America! There has never been a better time to work with this broker who gets her clients real exposure!

Here's a brief recap of where Connie has been and will be in these weeks:

*Connie recently appeared on the Fox News Business segment "Real Deal on Housing." As part of an expert panel, she talked about the potential of an upswing in home sale prices in Southern California (Original Air Date: June 24, 2008).

*Connie spoke on Martha Stewart Living on SIRIUS. (Original Air Date: June 25, 2008)

*Connie will appear on CNN "Open House". The program will appear on CNN Headline News on Saturday, June 28 at 12:30 PM.

*Connie will show her skills for selling a house on "Real Estate Confidential" featuring her most current listing, 1625 Clear View Drive. The feature will be a part of ABC's "Eye on LA" and will air on Saturday, June 28 at 6:30 PM.

To view all of Connie's appearances, click here: http://www.conniedegroot.com/tv.htm

Owner Financing--A Great Strategy for the Right Situation

2008-06-26T13:55:00.000-07:00

In today’s difficult market, sellers are looking for any way to sell their homes at a reasonable price. Some sellers are turning to owner financing, an option that bears risks and benefits to both the buyers and sellers. Owner financing is not for everyone, but it could help you greatly if you want to sell your home now or if you want to buy without the hassle of bank mortgages.

What is Owner Financing?

To simplify it as much as possible, owner financing is when the seller of the house provides the loan to the buyer. The loan may be in conjunction with or in place of a mortgage taken from the bank.

Of course, when the seller is the lender, the typical circumstances surrounding closing change. Usually, both sides save time and money from avoiding standard closing costs. First, the owner doesn’t get all of his money up front, but instead receives payments plus interest over a period of time, just as a bank would receive from the borrower. Usually, the lender offers a better rate—or at least a better total package—than the bank can offer. Hence, owner financing is really only viable for sellers who have some extra cash on hand.

The buyer, in turn, does not have to deal with securing a loan from the bank. Because the transaction is with another individual, the deal is much more flexible to negotiation from both sides.

How Does the Seller Benefit?

The seller may earn a higher selling price in return for offering the buyer a lower interest rate and allowing the buyer to avoid the bank.
Assuming the buyer can make all the payments, financing may be a safer option than other forms of investment. For example, if the owner can be assured of a 6% return, he may choose to finance the buyer rather than get his money in a lump sum at closing. The steady 6% may be safer than investing that money in a riskier option, such as the stock market, which may not make him that high of a return.
Because a third party will not be involved, the seller may be able to forego the inspections, appraisals, and insurance terms.

How Does the Buyer Benefit?

The buyer has more bargaining power with an individual owner than with the stubborn bank.
The buyer does not necessarily have to endure a tedious mortgage approval process.
If the loan itself slightly favors the seller, the buyer can leverage the deal to get the seller to do some home improvements as exchange. The seller may also throw in other goodies, such as providing homeowners’ membership fees or installing high-speed wireless internet prior to vacating.

How is the Seller at Risk?

The seller won’t get all the money upfront as he would in a typical bank mortgage. Hence, he will be unable to gain interest on or to invest the large lump sum that he would ordinarily receive.
If the seller doesn’t own the home, he has to pay off the existing mortgage before selling it.
The seller is at risk of the buyer defaulting. Whereas banks expect people to default and can still manage to turn profit when borrowers fail to pay, the individual seller is likely to be greatly affected by non-payment.
If an emergency arises and the seller needs cash quick, he will have to sell the loan contract. Because the loan likely has a lower interest rate than the bank would provide, the buyer of the contract will discount the price he offers the seller.
If the seller does not hire a lawyer to properly document the loan, he is at risk of the buyer taking advantage of a loophole.

How is the Buyer at Risk?

Because a third party will not be involved, unless the buyer demands a home inspection, mortgage insurance, or an appraisal as part of the deal, these buyer safeguards will not be necessary to closing. The buyer would be at higher risk of getting a lemon.

* * *

Owner financing really isn’t a complicated process. But it is only appropriate for certain situations. If the conditions are right for the buyer and seller, then owner financing can be mutually beneficial and profitable to both parties.

**Sources: michaelbluejay.com, financialweb.com, Century 21

Add value to your home with minimal effort

2008-06-23T12:14:00.000-07:00

As you know, sometimes the most minor factors make a difference. The same is true when it comes to selling your home. By investing a little time and a minimal amount of money, you can greatly enhance the marketability of your home. I have five suggestions for changes you can make that will increase your home’s value.

Remove personal items

As painful as it may be, in order to attract the most offers and to demand a premium for your home, you should remove personal items from the most visible areas of the home. You cherish your family photographs, trophies, and other memorabilia, but potential buyers will have little connection to these items. The key to selling is having a buyer build an emotional connection to your home. You want the buyers to feel like this home can be their own from the day they walk in the door.

Removing personal items is an easy change that doesn’t cost anything but that will earn you a higher offer. As an added benefit, it will make your home seem cleaner and more open, allowing the buyers to picture how they can add their own personal touches to each room.

Think about what may be too specific

I have sold some of the finest properties in the Beverly Hills area, and many of the owners that I have dealt with have been brilliantly artistic people with magnificently unique homes. But because not everyone has the same tastes or styles, it is important to consider which of your homes features may be wonderful, yet too specific to you.

A few weeks before your first open house, look around the house and try to take an objective view of what rooms may require personal tastes to like. Invite a few friends or neighbors to come by to lend you an honest outsider’s opinion.

Consider painting rooms that are done in non-neutral colors (bright colors like candy-apple red or bright yellow, etc) or rooms that are wallpapered (as quaint as it may be).

Artwork can be another touchy item. Even the most beautiful Renoir—not to mention a bold Rauschenberg—can give just a hint of doubt to the buyer. Again, if the buyers cannot envision themselves in the house on the day of the open house, then they will be more reluctant to make a high offer—or one at all.

My most memorable example of something “too specific” was the home with the large fiberglass tree built in the middle of the living room (go to the Real Estate Confidential Episode 1 video by clicking the “Connie on TV” link above). The owners couldn’t sell the home until I convinced them to remove the tree. The tree, of course, is an extreme example. But are you sure that a majority of people will feel completely at home in each room or with each item? If not, then change those features.

Spruce up with paint

You know how a new coat of paint can completely revive a room or the outside of a house. Use neutral solid colors, which will attract a wider swath of potential buyers. Even if a room is already in a neutral color, consider repainting it in order to give it a fresh look. Your house may be eighty years old, but fresh paint makes it look just built.

Brighten up with light

Nature is your cheapest and best tool. Bringing natural light into your home makes every room warmer, fresher, cleaner, and more inviting. This step is as easy as opening up the blinds or curtains of every window. Even if it is gray outside, buyers will feel more comfortable in an open and light house.

Consider the sense of smell

My previous suggestions have been mainly about how your house looks—but few people really think about the buyers’ other senses, such as how the house smells.

Before the open houses, avoid cooking with fish, garlic, onion, cabbage, or other potentially smelly foods. Also avoid spraying household cleaners around the house, as many people are very sensitive to such smells. Of course, however cliché it may be, the smell of baking pie or cookies seems to always make buyers instantly fall in love with the house.

* * *

All these suggestions are quick, easy, and cheap—the most expensive change is the paint. Taking a little time to neutralize your home will not only allow buyers to envision themselves in the house but will also show them how you went through the extra effort to present your home. And I guarantee that the cost of the minor changes will be far outmatched by the higher asking prices.

Reviving the Forlorn Front Yard

2008-06-18T12:38:00.001-07:00

When home prices reach upwards of $600 per square foot, you want to make every inch count. Maybe that’s why the front of the house has become an area of focus for many upscale homeowners.

It is interesting to consider why homeowners often ignore the front of their homes. Think about how many beautiful homes you have seen with stellar interiors, majestic backyards…and forlorn front yards.

Yet all realtors know about the studies that say that home buyers make up their minds within the first five seconds of looking at the house and only spend the rest of the time trying to justify their original impressions of the exterior. Finally, homeowners are catching on by giving the front areas the same respect as the rest of the property.

I have thought of some ways by which you can cultivate a fantastic front yard and add tremendous value to your property without breaking the bank.

The first reason why homeowners only tend to be in their front yards when they are walking from the driveway to the front door is because of privacy. Even on sultry summer days, homeowners will stay away from eating in the front yard because they do not want to be seen by strangers.

You can actually add to both the sanctity as well as the aesthetic value of your front in several ways:

Elegant gates. Granted, picket-white fences may be lost in the suburbia of the 1950’s, but adding a taller rod-iron gate will lend your home an image of grandeur while allowing you to feel removed from the street.
Landscape. Flowers, plants, trees, and other vegetation add color and refinement to your front yard. You may even use trees as natural fences that provide both shade and privacy.
Hardscape. Choosing the right type of material for your driveway and walkways can instantly change your home from a Los Angeles residence to a Tuscan estate. Lose the brick and concrete, and opt for a choice that can add both color and texture. Rustic-colored cobblestone is especially popular nowadays. Stone is another option, which can make your home resemble a French chateau.
Waterfalls or sculptures. I’m not suggesting that you go buy a dozen pieces and try to recreate the Getty Villa, but a simple three-tiered waterfall or a non-ostentatious stone sculpture by the front entrance can be another tactful and international touch. Stores like Z Gallerie offer some very nice options for very good values.

Now that you have established some privacy and some elegant touches to your front, you may even be willing to spend some more of your time out there. You don’t have to eat your meals in the front, but placing an iron table with some matching chairs on a grassy area will allow you to enjoy a cup of coffee or a glass of wine in another relaxing outdoor part of your home. Even if you live in a particularly busy area, the fence, trees, and the waterfall will do well to muffle the street sounds so that you really can enjoy yourself. And those some features will lend you the privacy and freedom to be yourself.

Connie's Back on TV...and now Sirius!

2008-06-17T15:42:00.000-07:00

Next week, I will not only return to the silver screen, but I will be making my debut on satellite radio!

You can catch me on the following programs:

CNN “Open House” (check soon for airing date)
Fox Business News with Liz Clayman and Dave Asman (June 24, LIVE! at 1:00 PM in Los Angeles)
Martha Stewart’s Sirius radio show (Channel 112, June 25, 12:00 PM in Los Angeles)

It's hot time to go solar!

2008-06-10T13:53:00.001-07:00

What if I told you that there was a simple, relatively inexpensive change that you could make to your house that could help you cut down your bills, do a public good, and increase the value of your home? There is indeed a solution, and it comes in the form of solar panels.

Solar panels are hot! Due to California and federal subsidies, solar panels are no longer reserved for mega-wealthy eco-friendly celebrities. Now, even the common urban Angeleno can enjoy the benefits of saving the environment, paying less for electricity, and earning a premium when it comes time to selling.

I searched the Go Solar California website (http:///www.gosolarcalifornia.ca.gov) to provide you with information about your burning questions about solar panels.

What’s the news?
The “California Solar Initiative” will provide over $2 billion in incentives over the next decade to subsidize the installment of photovoltaic (PV) solar panels on commercial, industrial, and residential properties. The program is intended to increase the solar electricity market; it is not directed toward solar hot water systems.

What’s the deal?
The CSI will offer you up to $2.50 per watt that your solar panels generate. The more solar panels you have and the more energy from the sun they create in substitute of standard electricity, the more you will receive in return.

For systems that generate over 100 kilowatts, incentives are paid monthly. For systems under 100 kilowatts, you will receive a one-time incentive upfront. The incentives will decline seven percent per year—starting from 2007—over ten years.

The amount of incentive that you receive is based on how much electricity your panels produce. But having more panels does not necessarily mean more electricity generated. The orientation of your panels—where they are located and how much sunlight they receive—is a major factor. I discuss how to optimize your orientation below.

Am I eligible?
If you are a customer of Southern California Edison, Pacific Gas & Electric, or San Diego Gas & Electric, you are eligible for the incentive program.

What is the best environment for solar panels?
The orientation of your solar panels is critical to optimizing the most value. The following bullets detail the best conditions for solar panels:

Your roof should have clear, unobstructed access to the sun for most of the day and should not be under large amounts of shade (from buildings, trees, pipes).
It is best if you have your solar panels facing south, which gets the most sunlight.

Do not expect to meet all these standards—few people do. But regardless of where your roof is, we do live in sunny Southern California, which receives more sunshine than almost anywhere in the country. You are sure to reap rewards on your electric bills. You should definitely contact a local provider to inspect your location.

How much space do I need?
You will need 100 square feet for each kilowatt of the common panel. Other types of panels may need more space.

How much do PV systems cost?
The costs of PV panels will vary based on the exact size, add-ons, and installation costs. Currently, systems average about $7.00 per watt.

Are PV systems reliable?
Although they may look delicate, PV panels are incredibly durable. They do not wear out. They can withstand brutal heat and other harsh weather conditions. They last upwards of twenty years.

Why spend money to get electricity I already have?
Solar panels have numerous public and private benefits:

By using natural energy instead of conventional carbon-based electricity, solar panels keep the air cleaner and reduce the causes of global warming
Panels save you money over time
Panels reduce our dependence on that $140 per barrel oil—remember, oil doesn’t only go into your cars!
Panels increase the value of your home (more on this later)

In addition to the incentives, the federal government also provides incentives. You can get an income tax reduction of 30% of equipment, and higher-income households can reap even more benefits.

How can solar panels increase the value of my home?
This may be the most critical question of all. You may argue that installing solar panels would be futile, because you are not sure if you still may be in your house in ten years. But consider the tremendous financial and psychological value that solar panels add.

Financially, you will offer the buyer a stable, environmentally friendly, and money-saving addition to the house. The buyer will be willing to spend more when he considers that he will be saving money on his utility bills for years to come. Looking ahead to the not too distant future, as solar panels become more of a commodity, legislative measures will make it even easier for households to buy and maintain solar panels—and more difficult to buy and maintain conventional electrical systems.

Finally, the psychological impact is even more profound. Not only are solar panels somewhat visually pleasing even on traditional homes, but they are fast becoming a social sign. The solar-paneled home gains respect and admiration from neighbors. The solar-paneled home declares that its owner is modern, proactive, and economically wise.

Yes, it may be difficult to think about laying down the money for a fancy system on your roof, but once you factor in the benefits of energy saved, reduced bills, and higher home value, the investment becomes quite worthwhile.

**Technical information and statistics gleaned from www.gosolarcalifornia.ca.gov

Green your house without a greenhouse, Part II

2008-06-09T11:58:00.001-07:00

This is the second installment of how to make your house eco-friendly in simple and effective ways. Last time, we discussed measures that will help you save water dollars in the laundry room and in the bathroom. Today, we will discuss eco-friendly bedroom furniture and decor options.

Bedroom
Although you may not be awake for many of the hours, you spend far more time in your bedroom than you do anywhere else in the home. Therefore, you should really invest into making your bedroom eco-friendly. Although many green products for the bedroom are slightly more expensive, the benefits are more than worthwhile.

Our beds, where we spend a third of our lives, can be harbingers of chemicals, germs, and eco-unfriendly materials. How can we reduce the environmental impact of our beds?

We have all seen how organic cotton has made its way into clothes, so why not buy sheets and blankets made of organic cotton? We usually associate pesticides with food, but few of us realize that “conventional cotton accounts for up to twenty-five percent of the insecticides used worldwide." In addition, the conventional process of making bedding involves many synthetic chemicals and dyes. Purchasing organic cotton may cost more, but it will make a tremendous contribution to the environment.

Décor
As people become more aware of conservation, having more natural items you have in the house will help you get a premium for your property, and you don’t need a fiberglass tree in the living room! Wood shutters and simple fabrics will make your property look fresher and more modern. Not only will potential buyers feel more grateful and friendly towards you—great assets to have when you are trying to get higher bids—but the general look and feel of the natural items will make your home into a much warmer environment. Natural products may be the answer to the aroma of oven-baked cookies.

* * *

Many people, especially during these harder economic times, are becoming hesitant to spend on slightly more expensive eco-friendly items. But when you consider the hidden costs of conventional products, you will realize that the eco-friendly goods pay for themselves. And just wait until you see the higher bids you will get for your green house!

* * *

The Green Guide provides many companies where you can find great natural products:

A Natural Home (http://www.anaturalhome.com/, 866-239-4142)

Abundant Earth (http://www.tkqlhce.com/click-1408393-1156456, 888-51-EARTH)

FLOR (http://www.florcatalog.com/, 866-281-FLOR)

Greenfeet (http://shop.greenfeet.net/z/6/CD29/, 888-562-8873)

Ikea (http://www.ikea.com/; 800-434-IKEA)

Savvy Rest (http://www.savvyrest.com/, 866-540-6444)

Sealy (http://www.sealy.com/, 800-MY-SEALY)Spiegel (http://www.spiegel.com/)

Tilonia (http://www.tilonia.com/, 888-759-8175)

Under the Canopy (http://www.underthecanopy.com/, 888-226-6799)

White Lotus (http://www.whitelotus.net/, 877-HANDMADE)

Whole Foods ECO Lifestyle Stores (http://www.wholefoodsmarket.com/)

*Thanks to Emily Main and The Green Guide

Green your house without a greenhouse, Part I

2008-06-05T13:30:00.000-07:00

How can the common homeowner make her house green without investing in lucrative technology?

The current green movement largely focuses on saving the public environment, but many people can take advantage of the trend for their own personal benefit. Going green can keep extra dollars in your wallet and will keep you and your family safe and healthy.

The green movement is becoming popular among all homeowners. However, many of my clients tell me that they have heard so many different opinions about how exactly to go green at home. In response, I have done some research and will present some of the best—and easiest—ways to green your house. I will tell you quick and easy ways to make your bedroom, bathroom, laundry room, and general household décor into areas that are friendly to the environment and to your family’s health.

Bathroom
Green is usually not a term that we like to associate with bathrooms, but in this case, going green can save the environment and can save you a surprising amount of money. Tap water is the cheapest necessity that we buy, but this fact has only made us into profligate spenders. As cheap as water is, you would be “flushed” to know how much we can save by being smart about how we use our water.

Showers and faucets
Many homeowners adjust the level of water pressure so that their showerheads spray far more water than is needed. Increasing pressure by even an unnoticeable amount will end up using an astonishing amount of more water. Even the most economical showerheads spray over 1.5 gallons per minute; many common showers spray over ten gallons per minute! Water may be cheap, but pennies add up. Look for showerheads that use under four gallons per minute. You may find such products for under $55.

Toilets
Considering how much water we can use in our showers, it is scary to know that the shower isn’t even the least water-friendly appliance in the bathroom. According to The Green Guide, “guzzling twenty-seven percent of your household supply each year, your toilet is by far your home’s largest water user” (The Green Guide). Most toilets use at least 1.5 gallons for each flush. Although we must all flush, we can cut down our water usage by not throwing trash in the toilet. Also, you can now offer high-powered toilets which actually use less water.

Laundry Room
The laundry room is another place where you can save yourself from unnecessary spending and from harmful chemicals.

At first unseen anywhere but in commercial laundries, front-load washers are now the norm. Why? Because for something as long-lived as a washer, the machines pay for themselves. The Energy Star approved machines not only use less water, but they also require far less soap—a double saver! You can find Energy Star approved machines at any home appliance store, and they are coming so far down in price that they have become a staple of every house.

We also use a large amount of chemicals in the laundry room. Conventional soaps and bleaches contain a “laundry list” of chemicals you’ve never heard of. Look for low-chemical detergents and chlorine-free bleaches, which you can easily find in Whole Foods.

Coming soon...
Part II: Going green in your bedroom and with your decor.

**Source: Emily Main and The Green Guide for providing the little details.**

Turn Your Backyard into a Relaxing Oasis

2008-05-27T16:31:00.000-07:00

When you look out into your backyard, do you see nothing but grass that needs mowing and dusty furniture from summers past? Maybe it's time to give your outdoor space a face lift. Here are some ideas on how to make your backyard a relaxing oasis:

Add a fire pit

You can spend a lot on fancy built-in models, but for less than $200, you can find a portable fire pit at the local home improvement store. (Do check your town's laws on the matter first; fire pits are illegal in some areas).

Add a fountain

A water feature, like a pond with a waterfall or a standalone waterfall, adds some soothing sounds to your space. The gurgle of a fountain is relaxing and it has the added benefit of drowning out background noise from the street. You don't necessarily have to spend a lot of money digging up the backyard to install plumbing and wiring. A lot of today's outdoor fountains are self-sufficient units, using solar power to circulate the water.

Buy new patio furniture

Have seating in all areas so you can sit and enjoy your creation. If stackable chairs and flimsy plastic tables are the extent of your outdoor "furniture," maybe it's time to upgrade. Now with water-proof fabrics and weather-proof materials means you can get just about anything for the backyard that you can for the living room. Why not invest in something that is comfortable and that will still look good several summers from now?
If you have a large area, create separate seating areas. Maybe adding a multilevel deck that includes a dining area and a relaxing area with lounge chairs and cozy seating around a fireplace. Include a mix lush of greenery and flowering plants in each area and try to incorporate some unique features into your space.

Source: luxuryhousingtrends.com

FHA Loans for Beverly Hills 90210???

2008-05-16T15:20:00.001-07:00

I recently sold a home in Beverly Hills Post Office where the buyer purchased the property with an FHA loan. The buyer first attempted to get a conforming loan but when it came time for the appraisal, the process was much more difficult then expected. The mortgage broker was not sure the buyer would get a conforming loan because of the appraisal. Being so, they explored the option of obtaining an FHA loan, where the down payment would be much less and the appraisal process would be a little less rigid. With the limits of FHA loans now at 729,750 that allows for many more buyers to utilize FHA loans. For a first time homebuyer with lending requirements being so conservative this loan may be the loan for you.

If you’re a buyer or seller in today’s rapidly changing market it is crucial that you have an experienced realtor, mortgage broker, appraiser, and home inspector. All parties representing the buyer or seller should be well informed in their area of expertise.

Good luck out there! If you're looking for a realtor or referral in your local area just give me a call.

Connie De Groot

Maximize Your Kitchen Space: Add an Island!

2008-05-01T08:35:00.000-07:00

Centrally located, islands are easily accessed and ideal for various kitchen tasks, whether you need a second work station, a space from which to serve an informal buffet, or just a place to put the day’s mail, kitchen islands are a popular solution to the lack of cabinet space. . They are often the focal point in the kitchen.

As the selection of kitchen islands continue to grow, so do the innovations. If you are planning a kitchen remodel that will include an island, the following is a list of the latest kitchen options and tips to consider when building or turning your fantasy island into a functional and stylish workspace:

Most important, there should be sufficient space between the island and other work surfaces.
Depending on your needs, the island can be located so it functions as an integral part of the area. It can also serve as a divider between the kitchen and the family room.
Create Levels: With multiple levels, guests can sit, chat or rest their beverages on the top counter, while the lower tier of the island could feature an ample work area for you to prepare a feast of tasty treats.
Ample drawers and shelves should be incorporated below the area to keep key ingredients, utensils and cookbooks. Also, consider adding a wine refrigerator to keep your beverages close at hand.
Cooktop islands have become very desirable, with cooktop; food preparation and cooking can all be done at the island top, while the space below can be used for additional storage or warming drawers.
A sink and faucet in your kitchen island will make food preparation and cleanup quick and easy. A pull down kitchen faucet can also make performing tasks such as filling large pots, pitchers and vases easy.
Select a surface finish that will add to the décor.
With your fantasy island becoming a reality, some finishing touches might be in order. Long vertical drawer and cabinet pulls add some flair to the kitchen, while doubling as towel bars.
Lastly, consider pendant lighting for your island. A variety of shapes, styles and finishes are available in home improvement stores.

Source: The Los Angeles Times