Pasadena CA Real Estate

If you attending CalTech and looking for housing, here’s a wonderful opportunity to own your own condo in Pasadena. 

This beautifully renovated 1 bedroom and 1 bath Pasadena condo is available for sale for only $200,000.  The complex located at 1115 Cordova Street offers a pool, sun deck and a barbeque area.

More information can be found at 1115 Cordova Street #213 Pasadena condo website.

If you are interested in seeing this condo, please call Irina Netchaev, your Pasadena Real Estate agent at 626-627-7107 to schedule a private showing or email Irina at Irina@PasadenaViews.com

UPDATE:  Sold in 1 day and closed escrow in 13 days!

It’s been an interesting couple of weeks. I’ve been getting multiple phone calls from home buyers finding my real estate websites and contacting me for more information on homes that they are interested in.

That’s great! Except for, most of these home buyers are doing research for their part time real estate agents. The phone call goes something like this:

Scenario #1

Home Buyer: Hi, I wanted to get more information on 1234 Main Street. I saw it on your website and wanted to see if you can show it to me.

Me: That’s great. I would love to help. May I ask you, are you currently working with a real estate agent?

Home Buyer: mmm… yes… but, my real estate agent doesn’t have time to show me the home. He or she is very busy. Can you please schedule an appointment for me.

Scenario #2

Home Buyer: I was driving through an area and saw a house that I liked. There’s a sign for XYZ company, but they’re not returning phone calls. I googled the address and your site came up. Can you please give me more information.

Me: Same answer – see above.

Home Buyer: Yes… I’m working with an agent, but your site is so informative and you seem so nice. You wouldn’t mind giving me more information about this house, would you?

Scenario #3

Home Buyer: I would like to get more information on a Pasadena home that you have on your website. I called my real estate agent and he said that he didn’t have access to the MLS, can you pull this up for him.

Me: SHOCKED… trying to think fast of an answer that will not offend.

Scenario #4:

Home Buyer: Hi, I’m calling to see if you have any short sales in Pasadena, Temple City or Arcadia.

Me: Sure… there are many homes available that are in the “short sale” process. Are you currently working with an agent.

Home Buyer: Well… I’m actually a lender looking for my client.

Me: Okay, no problem. Is your client working with a real estate agent?

Lender on behalf of Home Buyer: Silence… well… I’m doing all the pre work for my client. Just collecting information.

Me: That’s great. But, isn’t your client working with a real estate agent to help him buy a home?

Lender on behalf of Home Buyer: You see… once we find a home, I will represent him.

Me: Do you have access to the Multiple Listing Service (MLS)? All the information on short sales is there.

Lender on behalf of buyer: silence and hang up

Okay, so I’m getting a little frustrated here.

Let me set the record straight. Real estate agents work on commission.

Minimum real estate agent responsibilities:

We explain the home buying process.
We ensure our clients are pre-approved and understand what they can and can not afford.
We find the right homes for our home buyers.
We negotiate the best price and terms.
We oversee all transactional details during the escrow process.
We close escrow.
Home buyer is happy and we get paid.

The best real estate agents will only work with 3 to 4 buyers at one time. Their time is limited because their focus and attention is devoted to their clients.

If you are a home buyer working with a real estate agent that is unable or unwilling to provide you with the attention that you deserve – switch agents. But, please, I beg you, do not call me and ask for information and cut into my time with my clients. It’s simply disrespectful.

If you are a lender who is trying to make some extra money on the side dabbling in selling real estate. Let me tell you. It’s not easy. If you’re not equipped and trained and experienced to do it correctly, just don’t. Save yourself and your clients the trouble. Refer your home buyers to a great real estate agent.

And, if you are a part time real estate agent that does not have the time for your clients because you have another full time job or do not have the money to invest in the MLS and other needed tools, well… you know what NOT to do…

There are a lot of questions around the $8,000 tax credit that is part of Obama’s stimulus package. Here’s a more detailed explanation:

The $787 Billion stimulus bill is made up of tax cuts and spending programs aimed at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. One of the major benefits of the plan is a tax credit for new homebuyers.

According to the plan, first-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

A first-time home buyer is defined as someone who has not owned a primary residence for the last three years.

It’s important to remember that the $8,000 tax credit is just that… a tax credit. It’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.

Better still, the incentive is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you’re liable for $4,000 in income tax, you can offset that $4,000 with half of the tax incentive… and still receive a check for the remaining $4,000!

Who Qualifies?

The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers.

To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800.

Remember, these are general examples. Borrows should consult a tax advisor to provide guidance relevant to their specific circumstances.

What Type of Home Qualifies?

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying “homes” include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

My friend, Mike at Cafe Pasadena, just sent me information about the new incentive plan that the State of California is offering to encourage home buyers purchasing new home construction.

This tax credit is obviously not being promoted by the state of California since I’m hearing about it for the first time. But, here at the Pasadena Real Estate blog with the help of our friends, we are able to bring you the scoop!

$100 million has been allocated and is available on a first come, first served basis. So if you are thinking of buying one of the new Pasadena condo developments like Granite Park or Lake at Walnut , make sure to take the opportunity to apply for this credit.

Here are the California tax credit rules:

California Tax credit amounts

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.

Total credit allocated to date by California: $0

Remaining credit available: $100,000,000

To check how much Tax Credit Allocation is available, visit the Franchise Tax Board New Tax Credit for New Construction Home Buyers Page.

California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.

How to apply

Within one week (seven calendar days) after the close of escrow:

Fax is the only delivery method that will be accepted and considered for credit allocation by FTB (Franchise Tax Board), as the date and time stamp on the fax will determine the order in which credits are allocated.

PLEASE NOTE, A HOME BUYER ONLY HAS 7 DAYS FROM THE CLOSE OF ESCROW TO FILE FOR THIS TAX CREDIT!!!!!! 

Don’t miss your opportunity to take advantage of this tax credit for new construction homes!

UPDATE: The Franchise Tax Board (FTB) recently announced that the $100 million allocated by the state in new home tax credits will soon be gone. The FTB has received more than 9,800 applications, claiming nearly $95 million as of June 17, and plans to accept 12,000 applications to allow for duplicates, revisions, or invalid applications.

This tax credit is available for qualified buyers who, on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. To apply, an application for new home credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to the FTB at (916) 845-9754.

The FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

For those who are considering taking advantage of the $8,000 tax incentive for first-time homebuyers which is included in the president’s economic stimulus bill, there is some more good news that could make doing so easier and more accessible.

An extension is now officially in place on the higher loan limits for mortgages in the tier that lies just below what is considered a “jumbo” loan.

First established last year, and now extended through the end of 2009, limits on this additional tier provide opportunities for many who are looking to either refinance or, better yet, take the plunge into first time home ownership and grab a piece of the highly publicized $8,000 tax incentive.

Here are some key points about this higher loan limit extension, announced by the Fair Housing Finance Agency this past week:

The non-jumbo, middle tier of home loans begins at loan amounts greater than $417,000 for single-unit homes.

The top end for this tier is $729,750 for single-unit homes.

The rates for these loans will again be slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

This higher limit on the non-jumbo tier is available in Los Angeles and 249 other counties across the United States.

If you are not sure if you if you can take advantage of the $8,000 tax incentive, here are some examples to help you better understand the income limits and phase-out structure.

The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers.

To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800. Remember, these are general examples. Borrows should consult a tax advisor to provide guidance relevant to their specific circumstances.