Real Estate Information Archive

Strategic defaulting, as opposed to economic defaulting, is the practice of homeowners voluntarily ceasing to pay the mortgage on their Los Angeles real estate even though they have the financial ability to make the payments—and it is on the rise.   This increase is generally attributed to the ever-growing number of underwater loans, falling home prices, the unemployment situation in the U.S., multiple “how-to” websites on-line, and advice from financial “experts.”

A recent study by the Mortgage Bankers Association warns that this practice may well have dire negative consequences on Los Angeles real estate markets and points to widespread media coverage as the reason for the continuing growth of strategic defaulting.  “Recently, the overwhelming media coverage of the current financial crisis has made homeowners aware -- or at least alerted them to become aware -- of their equity position in their home," said Michael Seiler who headed the study for MBA.

"While the merits of such a choice can and will continue to be debated, what is indisputable is that the possibility to strategically default has certainly been brought to the attention of current homeowners like never before, with potentially negative consequences for housing markets," said Seiler.

For owners of Los Angeles real estate who are experiencing or facing and underwater loan situation, the temptation to strategically default is often very powerful. After deciding not to make payments any more, the borrower can live free of the costs of a mortgage payment until the lender forecloses, which may take from several months to a year and may use this time to pay off or negotiate other debt.

There are, however, several negative consequences—on the owner and on the community-- for taking such action.  Personal repercussions include, but are not limited to, damage to one’s credit rating, inability to obtain another mortgage for a long period of time, and legal action by the lender to collect monies owned by the defaulting homeowner.  However, the consequences of strategic default are not limited to the borrowers. Their neighbors are affected as well. Foreclosures cause the value of all the homes in a neighborhood to decrease simply because they will end up being sold at rock-bottom prices. Once that lower value is established as a recorded sale, it drags down appraised values for future sales. This is why strategic defaults can quickly be detrimental on a larger scale and should be considered a moral/ethical decision as well as a financial one.

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com.

Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®.

NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments.

NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year.

What does affordability look like in our local real estate market? Take a look at February figures.

Beverly Hills Real Estate Sales Statistics - Single Family Homes

Beverly Hills Post Office Real Estate Sales Statistics - Single Family Homes

Bel Air Real Estate Sales Statistics - Single Family Homes

Hollywood Hills East Real Estate Sales Statistics - Single Family Homes

Hollywood Hills West Real Estate Sales Statistics - Single Family Homes

West Hollywood Real Estate Sales Statistics - Single Family Homes

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com. 

There is good news and bad news for owners of Los Angeles real estate:

• LOWER MONTHLY PAYMENTS:  FISERV (Financial Services Technology) has recently announced that mortgage payments on Los Angeles real estate are nearly 40% cheaper than they were in 2006, with a mean of $700 now compared with $1140 then.  Price declines and low mortgage rates have resulted in a ratio of monthly mortgage payments to median family income that is one of the lowest on record. 
   
• NEW AID FOR UNDERWATER OWNERS:  In a recent speech in Las Vegas, President Obama outlined a new overhaul of the Home Affordable Refinance Program (HARP) that will make it easier for owners of Los Angeles real estate whose mortgages are federally guaranteed to refinance at ultra-low rates of near 4%.  Approximately one million borrowers could now be eligible for the program and could save as much as $2500 a year.  Some previous restrictions have been eased, lower rates are available, and there is no limit to the amount owed.  To be eligible, owners must not have missed any payments in the last year, and their loan must have been taken out prior to June 1, 2009.  More complete details are available in The Huffington Post.
   
• GOOD NEWS/BAD NEWS FOR LOS ANGELES REAL ESTATE INVESTORS AND RENTERS:  According to the October Core Logic U.S. Housing and Mortgage Trends, renters now spend five percent more of their household budgets on housing costs than do homeowners, and the difference is growing as rents rise.  Since 2005 homeowners’ expenditures for housing have risen from 31.9 percent of their household budget to 33.2 percent, but renters’ costs have risen even more, from 35.6 percent to 38.4 percent.  In the last twenty-five years homeowners have increased their housing expenditure allocation by 12 percent, while that of renters increased by 22 percent.  Here are more statistics.
   
• FIRST-TIME HOMEBUYERS HANG TOUGH:  Despite rumors to the contrary, first-time buyers of Los Angeles real estate are alive and kicking, buying houses at virtually the same pace as they were before the first-time homebuyers credit first stimulated demand two years ago.  For the first seven months of this year, the first-time buyer market share has been remarkably steady, ranging from 32 to 36 percent of existing home sales through the spring and summer buying season, according to the National Association of REALTORS® monthly survey of 1300 members.  Even though the first-timers are saddled with higher down payments, tougher credit requirements, and mortgage approval delays, those are not the deal killers that they are often thought to be. 

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com.

It seems that every week some new and improved electronic gadget comes on the market, be it an iPhone, iPad, tablet, GPS system, computer, gaming device, or the like.  If you’re one of the millions of Americans who are unable to resist the urge to upgrade, your Los Angeles home may have become a holding tank for numerous discarded, but still useable, e-items.  What to do with them?

Environmental watchdog groups urge that you not throw “e-waste” away since doing so contaminates the atmosphere with toxic metals—and because, they point out, most of those gadgets are still worth money—either for you or for a charitable organization.   Instead, they suggest these four viable options:  trade in for cash or gift cards, donate, recycle, and reconsider your need to upgrade.

• Trade in your used items.  Many large companies offer programs in which they evaluate and accept your item and give you cash or a gift card in exchange for it.  Participating stores include Amazon, Target, Walmart, and Best Buy.  Online sites such as Nextworth and Gazelle will quote you the price they will pay in cash for your discarded equipment before you mail it in to them from your Los Angeles home.  Or you can simply sell the electronics you no longer need on sites such as EBay and Craig’s List.
• Donate:  Many nonprofit organizations such as the March of Dimes, Keep America Beautiful, and Call to Protect collect cell phones for their missions.  Also, Goodwill’s Reconnect program accepts computer equipment, erases all stored personal information, and either sells or responsibly recycles the items.  In addition, you can help Operation Gratitude in their efforts to send care packages to U.S. troops overseas. GRC Wireless Recycling will contribute up to $30 (or more) to Operation Gratitude for each donated cell phone.
• Recycle:  Unsure where to recycle?  Gcycle will find recycling locations near to your Los Angeles home if you supply your zip code.  Best Buy and Staples will also accept electronic equipment for responsible recycling.
• Reconsider:  Before you upgrade to a new cell phone or other device, take a good look at the item you are about to stop using. Do you really need the latest model or does the one you have now do the job? Curbing some of your impulse buys will help keep even more e-waste out of our landfills. 

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com

(SIMPLE AND INEXPENSIVE SUGGESTIONS)

If you are one of the millions of Americans whose home has lost value in recent years, despair not.  Whether you’re trying to spiff up your Los Angeles real estate for resale, to raise its appraisal, or just to keep current with updating and maintaining what you currently have, there are many relatively easy and budget-worthy steps you can take.   Some of these minor projects designed to increase value are quick fixes while others may require a weekend’s worth of work, but all will certainly revive the look of your property.

Exterior improvements:

• Keep shrubs and trees neatly pruned.  Plant new trees for energy savings and aesthetic value.
• Add low-voltage lighting for pathways
• Pay attention to the front door of your Los Angeles real estate.  Does it need new weather stripping?  A fresh coat of paint? Updated (or at least polished) hardware—knockers, knobs, hinges, and light fixtures?
• Spend $10 to test your lawn for needed nutrients.
• Attend to the garage door.  Use a mixture of one part bleach to three parts water and a soft-bristled brush to give it a thorough cleaning.  Still dirty or stained?  Rent a power washer for about $60.
• Check for faded or peeling paint.  Sand and apply a fresh coat.

Interior improvements:

• If you can’t replace the water heater in your Los Angeles real estate with a tankless model, wrap the one you have in fireproof insulation.
• Install modern light switches and outlets throughout your home.  Add dimmer switches.
• Insulate windows.  (Easy-to-follow instructions.)
• In bathrooms replace dated towel racks, light fixtures, sinks, toilet seats, and hardware.  Purchase a low flow toilet.  Re-grout where needed.  Display matching towels.  If the floor is in poor shape, consider putting easy-to-install vinyl tiles right over the old one.
• Add crown moldings, wood trim, and/or cornices to give room a look of quality.
• Update your kitchen inexpensively by replacing fixtures, faucets, and hardware.  Consider pendant lighting.  Refinish cabinets rather than replacing them.
• Clean and organize all closets.  

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com. 

Don't miss out on any real estate tax deductions this tax season.

Be sure to read IRS consumer web pamphlets on real estate taxation at www.irs.gov.  

Go to 'Forms and Publications', then scroll down to download or view tax publications by number:

• 521: Moving Expenses
• 523: Selling Your Home
• 530: Tax Information for Home Owners
• 544: Sales and Other Disposition of Assets (1031 Exchanges)
• 551: Basis of Assets
• 587: Business Use of Your Home
• 936: Home Mortgage Interest Deduction

Search all Los Angeles homes for sale.

Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com. 

There is a false internet scare going around lately which indicates that all home sellers will have to pay a 3.8% federal sales tax on the sale of real estate starting in 2013. This is not true. In the first of a few installments on this subject, I've outlined below a brief description of the rules that apply beginning in 2013.
 
Starting in 2013, single taxpayers with Adjusted Gross Income (AGI) of $200k or couples filing jointly with AGI of $250k will pay 3.8% tax on net investment income (defined as capital gains, rents, dividends and interest), including income realized as a result of the sale of a principle residence or second home. Note that the gain is that realized AFTER THE NORMAL $250k or $500k REAL ESTATE EXCLUSION on the sale. AGI, of course, includes the after-exclusion income for that year. The tax is applied to the lesser of (1) net investment income or (2) excess AGI over the $200k or $250k limit, as applicable. 
 
For example, if a single taxpayer has AGI of $275k, with $50k being net investment income, then the 3.8% tax applies only to the $50k, not the $75k excess. If he has, instead, $90k in net investment income, the 3.8% tax is applied to the $75k excess over the income limit and NOT to his total net investment income. The funds will be used to shore up the Medicare fund portion of social security.
 
Again, the normal real estate tax exclusions apply. This means that for single taxpayers, the first $250k in GAIN (i.e., profit) from the sale is excluded from income. For married couples filing jointly, the first $500k in GAIN from the sale is excluded from income. If, for example, a single taxpayer sells a house for $1M that he purchased for $750k, he would pay no income tax on his proceeds. He wouldn't pay the 3.8% nor would he pay any income tax on it. That income is "excluded" from taxation. As another example, if a couple sold a house for $500k that they purchased for any amount of money, that sale would have no income tax applied to it. Any married couple filing jointly who sells a house for less than $500k would not pay income taxes on the proceeds, not the 3.8% nor any other income tax.
 
The Tax Foundation has estimated that this tax will only apply to the top-earning 2% of US families. See NAR.org/health insurance reform FAQs for a full explanation of the bill. Note that this article is not deemed to be legal or tax advice. Please seek the assistance of your lawyer or CPA with respect to these issues.

Search all Los Angeles homes for sale.

Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com. 

On February 29^th we experience an extra day in our calendar, an event that occurs in a Leap Year.  This “once-every-four-years” term describes a year containing one additional day in order to keep the calendar year synchronized with the astronomical or seasonal year.  Because seasons and astronomical events do not repeat in a whole number of days, a calendar that had the same number of days in each year would, over time, drift with respect to the event it was supposed to track. By occasionally inserting an additional day into the year, the drift can be corrected. A year that is not a leap year is common year.  So now you know…and are you ready to leap into spring at your Los Angeles home.  How?  Read on for some suggestions….

Indoor Gardening:      

• Bulbs.  Pre-planted bulb pots are available in the grocery stores now.  Pick up a few pots and brighten up your Los Angeles home. Or, if you are ambitious, carefully dig up and pot the bulbs that are just emerging in your yard.  Be sure to leave a good amount of soil around them when you dig them up.  Keep the pots cool, slightly moist, and out of direct sunlight to enjoy the longest flower show.
• Houseplants.  Treat them to a shower in your sink and re-pot ones that are in need!
• How about adding some new scented houseplants to the collection in your Los Angeles home?  Hoya is an old-fashioned plant that’s making a comeback and doesn’t need a lot of sun.  If you  have a nice sunny spot, Sweet Bay, Cuban Oregano, Eucalyptus and Scented Geraniums are all great choices.

Outdoor Gardening:

• Deadhead camellia blossoms and pick up fallen blossoms to prevent disease.
• Prune roses and deciduous fruit trees. Spray them with horticultural oil to prevent insect problems in the future.
• Prune evergreens and liriope and continue doing so through April.    
• Do NOT prune spring blooming (flowering) plants! Wait until after bloom is over.
• Tools: Clean and fix them now! Sharpen lawnmower blades, change the oil, and clean or replace the filter.  Clean pruner blades with rubbing alcohol. Oil hinges.
• Now is a great time to design and plan the spring and summer plantings for your Los Angeles home. Think about adding some vegetables for you and a row for a food bank.

Ready?  Get set and LEAP into spring!      

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Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com.

While concerns about the economy are cooling the market for most other types of real estate, apartment and rental property rents and occupancies of Los Angeles real estate continue to be boosted by demand from millions of people who are victims of foreclosure or are unwilling or unable to buy their own homes.   The main reason for the rental increase is a faster-than-expected decline in the home ownership rate, according to Green Street Advisors. 

With rents rising faster than last year, the picture for residential real estate investors is getting even better than it already was as a result of once-in-a-generation prices and low interest rates, according to Greg Rand, founder and CEO of OwnAmerica, who downplays concerns over near term price declines and urges investors to take a long view of the opportunities.  “This is a long term investment,” says Rand, who differs with what he calls the “get rich quick” approach to investing. “Rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long term investors who take a long term view.”  You might also consider investing in apartment buildings, although with 1.4 million new renters this year, apartment construction can’t keep up with demand. Tenants, especially former homeowners forced from their homes because of the economy, are increasingly turning to single family homes owned by investors, especially in high foreclosure markets.

A survey by Realtor.com in April found that by a three to one margin, investors (including those looking to purchase Los Angeles real estate) plan to be more active in their local markets compared to typical homebuyers in the next 24 months, and 69 percent of investors say it’ll be easier to find properties in the near future.  Most investors are newcomers. Fifty-nine percent (59%) said they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.

Where to start?  You can begin by consulting with a Realtor who is familiar with the Los Angeles real estate market and is savvy about owning rental properties.  You can also go online for a myriad of sites offering tips, advice, and strategies for the new property investor.  Click these particular offerings for a good guide for beginners or for an extensive variety of articles and videos covering just about everything you want to know about beginning your investment venture. 

Search all Los Angeles homes for sale.

Eileen Walsh has a reputation for tough, yet fair, negotiation, and for facilitating real estate transactions to a successful close. She has earned the loyalty of repeat clients who rely on her for all of their real estate needs. Eileen's goals are to ensure Los Angeles real estate sellers that they receive top net dollar for their properties in the shortest amount of time and to help Los Angeles homebuyers find the property which best meets their objectives at the fairest price. 

Empowered with the appropriate people skills, market knowledge, deal-making track record and dedication to her clients, Eileen has shown that she is THE INTELLIGENT CHOICE to represent you in your next Los Angeles real estate transaction.

For more information about buying or selling your Los Angeles home, please call Eileen direct at 310-738-3807 or via email at eileenwalsh.realestate@gmail.com.