· In most cases, property taxes are assessed based on the sale price, and most often, the sale price is consistent with other comparable homes in the area. However, consumers need to be aware that purchasing homes at deeply discounted prices, especially those that are heavily damaged, does not necessarily mean that the property tax assessment will be based on the sale price. In those instances, property taxes often will be assessed based on the value that the appraiser determines to be the full-cash value. If a buyer has to invest a significant amount of money into the property to make it livable, the amount invested often is added to the sales price to establish an accurate property tax assessment.

· A separate measure, known as Proposition 8, allows a homeowner to request a temporary property tax reassessment, which can result in lower property taxes. This proposition is most-often employed by buyers whose home values have declined in the current market. However, Prop. 8 requires that homeowners whose properties are reassessed must have the home reappraised each January, to determine the current home value and that year’s property taxes. Because the reduction is temporary, it only stays in effect until the property tax assessment is equal to the assessment the homeowner would receive under Prop. 13. Also, Prop. 8 does not limit the annual increase to 2 percent, which can result in the homeowner paying the same amount of property taxes in the long run, as if they had not received the reduction.

· Gone are the days of buyers purchasing a home in "as is" condition. Today’s market is driven by buyers, and with it come many seller-funded concessions. In the past, some sales contracts contained clauses allowing the contract to be negated if the home did not pass inspection, if the buyer was unable to qualify for a mortgage loan, or if the buyer could not sell their own home. Nowadays, after negotiating the sales price, some buyers also are insisting on contingencies such as seller-funded property tax assessments or replacing roofs, furnaces, and the like.

· According to an economist at Moody’s Economy.com, if home prices decline an additional 5 to 10 percent, housing affordability will increase and more first-time buyers will enter the market. In the second quarter of 2008, C.A.R. reported that 49 percent of California’s households could afford to buy an entry-level home in the state, double the affordability rate from the second quarter of 2007.

· While many buyers are taking advantage of today’s low interest rates and reduced home prices, the majority of serious and qualified buyers typically will purchase homes by the end of the year, after which the buyer pool will decrease. Traditionally, the height of the home-selling season is during the summer months. Generally, home sales begin their seasonal decline in the fall, once children are back in school and the holiday season approaches.

· FICO scores are most-often used by mortgage lenders or credit card companies to determine a consumer’s credit worthiness. The score ranges from 300 up to 850. The higher the FICO score, the lower the perceived risk. There are five areas that affect a FICO score—payment, about 35 percent of score; outstanding debt, 30 percent; length of credit history; new accounts; and the different types of credit the consumer has, such as revolving credit, auto loans, and mortgage loans. The most effective strategies to raise a FICO score include: keeping credit card debt to less than 50 percent of the available credit (below 10 percent is ideal), making payments on time, and limiting the number of credit inquiries.

· Most sellers are sentimental when pricing their home and often insist on listing it at a higher price than it is likely to garner in today’s market. If a home is priced unrealistically, it likely will stay on the market longer, often reducing its appeal and leading home buyers to question its value. Many factors influence home values. To prevent a listing from going stale, sellers must work with their REALTORS® to price the house correctly.