IRS on YouTube: Tax Breaks for Homebuyers

Every once and a while I see a good use of social media, other that finding out what's for dinner.

The California Association of Realtors tweeted about the IRS using YouTube to tell taxpayers about tax breaks for buying real estate.

Kinda cool. YouTube is free too. (I like it when the government doesn't spend money.. which is almost never)

Here is an example:

To see more of these videos, check out this link:

http://www.irs.gov/irs/article/0,,id=212289,00.html

Now I have to acknowledge that this is a great use of social media.

The next thing you know... we'll be Twittering our Congressmen and Senators about re-doing the medical system.

Wouldn't that be interesting... having a direct link to the Congress. They would have to hire people to organize the tweets and report the consensus to Congress. (creating jobs) They could hear directly from their constituency.

That would almost be like a... well... a democracy. (twitter is free too)

We'd be able to say that social media really can impact our lives in a positive way.

Ok...ok, sorry... I'm getting off track. Back to the IRS videos. If you'd like to see more, check out my website at: www.bigmark.net and click on the "The Tax Man" button.

While you are there check out the "GATEWAY". It's the best real estate search engine for civilians in the business. There is more great stuff there too.

Let me know what you think.

Commercial Real Estate Market decline slows according to the NAR.

Being a hybrid realtor, working with commercial and residential clients, I've noticed a lot of similarities between the two markets.

With this latest decline, people are loosing their jobs, businesses are closing. Property values are declining, short sales are happening, and foreclosures have hit both markets. Many sources tell you that the worst is yet to come. There are significant numbers of mortgages in jeopardy.

As I'm proof reading this, I'm getting depressed. I have many friends and clients who are feeling the "pinch". But there may be some good news out there. We are hearing that the residential market may have hit bottom. Here is a press release from the National Association of Realtors that identifies some positive trends in the commercial market too. Check it out:

http://www.realtor.org/press_room/news_releases/2009/08/decline_slowing

It says the trend of decline in the commercial real estate market is slowing. That may or may not be a long term trend. I hear talk about commercial foreclosures around the corner.

If you have read any of my blogs in the past you may be able to guess what the theme of my comments will be... (I'll try to keep it short)

The commercial market has certainly been affected by the recession. Less in the economy means less jobs which means more businesses closing which means more vacancies which means less rent which means less ability to make mortgage payment which means investment portfolios are smaller which means... you get the idea.

One tool that the residential market has has some success with is loan modification.

I see loan mods helping the commercial markets as well. Work it from the bottom up... If a landlord can get a loan mod, they can negotiate with a tenant who may be having troubles to lower their rents which may help keep the business in operations which means jobs can be saved which means more cash in the economy. I think?? Or the banks can foreclose and become landlords, or try to sell investment properties in a down soft market. Which means... for another blog.

Let me know what you think...

Hi End Homes not recovering. But why? Don't be seen holding the trophy home!

I've just come off of having a trophy home listing. Literally NO homes sold in the area in over a $Million spread for over 6 months. $2M to $3M sales price, NOTHING. This in an area know for exclusivity, quality of life, and great schools. At any given time there were at least 2 dozen homes in that $Million spread price range.

We saw lending criteria for jumbo loans loosen and money become availble. We saw the lower end market pick-up significantly. We saw some sellers drop their price to what seemed like crazy rock bottom pricing. We all seemed to be chacing ourselves because there was NO MARKET. Very frustrating.

Even if you got an offer... how would we get the appraisal?

I saw this piece from CNN Money that says the high end market isn't rebounding and may take a couple more years to come around. Check it out:

http://money.cnn.com/2009/08/07/real_estate/expensive_homes_miss_recovery.fortune/index.htm?section=money_latest

In my opinion, there is one significant factor the article doesn't address. They mention the lack of demand. But, there are still people who can afford these homes. It looks to me like nobody wants to be seen holding the trophy home. In down times, it's better to stay under the radar. At least that's what it feels like to me.

Here is an example of what I'm talking about... an unnamed family member just bought a new BMW Z4 roadster. When they told me about the new car, they said.. "dont' tell anyone about it." .."we don't want anyone to know we bought it.".. "not with the down economy and people having financial troubles."

I think a little good news, good economic news, will bring the market back faster in the upper end. It may be starting to happen.

Let me know what you think.

HUD trying to Mod Loans. Banks need to step up.

Listen to this NPR interview interview of HUD Secretary Shaun Donavan. I think it shows that the Federal Government is providing a path for Banks to modify loans. But it will take effort from the Banks to recognize that loan mods work for them too.

Here is the whole article: http://www.npr.org/templates/story/story.php?storyId=111436558

I'm convinced that mods are a better solution than foreclosure for struggling homeowners. But I'm not convinced that homeowners walking away from their homes because of devaluation is the wrong thing in all cases.

The Secretary comments, "where will they go?" and "their homes are more than homes..". I get it... Homeowners lives are centered around their homes. Schools, friends, kids, all that stuff.

We need banks to step up and increase the number of loan mods they are doing. We need them to loosen their criteria for mods. And at the same time we need the federal government to step up and put some more of the stimulus money to work to provide more mods and incentives for the banks to participate.

Let me know what you think...