“Qualified primary residence” indebtedness is defined as debt incurred in purchasing, developing, or substantially enhancing a principal residence. It includes both first and second trust deeds. Additionally, it includes refinance loans to the extent the monies were used to payoff a previous mortgage loan that would have qualified.

The tax breaks affect financial obligations discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim their exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the aforementioned exemptions (e.g., second home or rental property) may be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the degree their current liabilities exceed current assets.

To learn more with regards to mortgage loan forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

In essence AB 183 is an extension of the 2009 home buyer tax credit. However that credit only covered $100 million dollars, which was used up in only four months. AB 183 is also a first come first serve credit but with $200 million in credits we expect it to last closer to six months. Bottom line now is a good time to buy a new home as you can still lock in low interests and get up to $10,000 in tax credits while home prices are still low compared to just a few years ago.

The most successful way to stage a home is to focus on three primary areas: increasing curb appeal, reducing clutter, and cleaning and/or repairing surface items. All three areas are relatively easy for home owners and/or their selling agents to tackle.  When staging a home always keep in mind that you should be trying to enhance your home’s appearance, not hide flaws.  If you have serious flaws with your home you need to address those before staging as they will definitely be caught in the final inspection, which will cause delays in the sale or even the deal to fall through completely.

Curb Appeal:
First impressions can make or break a potential deal. Curb appeal matters. The first chance for your home to make an impression on a potential buyer is the moment they get out of their car and head towards your front door. Make sure the lawn and greenery are trim, consider adding flowers to make a solid first impression. Consider painting the exterior or at the minimum thoroughly clean the exterior. These are all relatively inexpensive improvements that can greatly add to the curb appeal and make that great first impression.

Reducing Clutter:
Everyone has their own ideas on what makes a home special. By reducing your clutter you leave more room for the potential buyer’s imagination to create a good impression. Try removing bulky furniture and unnecessary items to create more space.

Personal belongings like family photos can become distractions and prevent the potential buyer from viewing the home as their own. Remove all personal photos in the main areas of your home to let the potential buyer start associating in their mind that the home is their own not yours.

Cleaning and/or Repairing:
Noting lessons a homes appeal more than a dirty appearance. Before showing your home make sure to wash the windows, vacuum the carpets, and put away any dirty dishes.  Spending a small amount to fixholes in walls, cracks in paint, chips in tile or other simple repairs can pay huge dividends in the final sale price. Fixing those issues means less work for potential buyers, which makes your home far more attractive.

Just working on those three areas of home staging can make a huge impact on how quickly and at what price your home sells for.

California showed the most dramatic inventory declines, with Los Angeles showing a 53.9 percent decrease year-over-year while Bakersfield/Fresno tracked a 56.2 percent decrease. Because of the drop in inventory home sellers are now begging to see multiple bids on their homes, which is helping to bring up the median sale price and will eventually help turn the housing market upward.

We’ve already begun to see this effect in the South Bay where our recent listings in Manhattan Beach and Torrance received multiple offers within a week of public listing, resulting in quick sales at prices matching and exceeding seller expectations.

2118 Marshallfield Lane #B, Redondo Beach

Custom flooring, granite countertops, 2 fireplaces, huge master bedroom with large private bath featuring jacuzzi tub and shower are just some of the outstanding features. This home is a must see! The price was just reduced by $20,000 to $799,000 so it won’t be on the market long.

To get more details or to schedule a private showing go to 2118 Marshallfield Lane #B, Redondo Beach, CA. or click here to view the entire Redondo Beach MLS real estate listings.