Buying and Selling When You're Ready

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Well, let's start with a few of the obvious things; first off, we have some of the most amazing weather in all of America! But I could be a little biased as I was born and raised here. Although most would agree that Southern California is one of the most temperate climates in all of California. We have neither severe cold spells and not often do we experience excessive heat. And the options environments are crazy good! Most of us can be in completely different landscapes in a little over an hour. In theory, you could be skiing in the morning and then surfing by the afternoon! I think we can all agree that Southern California is one of the best places to exist!

Now, let's talk Real Estate. As a Realtor, I often hear questions and concerns from people wanting to somehow predict our regions housing market. This, however, is not an easy answer. There are so many variables that can affect our housing market, I cannot overstate this point; there is not one way to predict what our housing market will do in the future for 100% certainty. With all of the knowledge, experience and information that the housing specialists have, like weather men, they might be lucky sometimes but they will not ever be right all of the time with their predictions. Interestingly enough, we all sound a lot like specialists when talking about the past. While it is true that the past can be a great indicator of the future, it's even more important to acknowledge that there has never been a time in history that is exactly like this one; politically, socially, economically, etc. These are just of a few of the many variables that have a trickle down affect on our housing market today. There are so many parts and pieces that are constantly moving and shifting, making it hard to know what to do and when to do it, from those standpoints.

With that being said, "how do we decide when to buy, sell or hold a property in Southern California?" The best answer is, BUY WHEN YOU"RE READY, SELL WHEN YOU'RE READY AND HOLD IF YOU'RE NOT READY!. For instance; if the needs of your family require more space, you have prepared and have the funds ready for an upgrade, interest rates are low and maybe you've started to notice some pretty shady characters lurking around your neighborhood, now might be a good time for you to start thinking about a move. In this case, whether or not the real estate market sky rockets in the next few years or whether it takes a dive, this may have no bearing on your move whatsoever. Because the good news is, your sole purpose is not the immediate investment, unless you are planning to "flip" the home by immediately trying to turn it for a profit; when you buy a home with the long term financial investment and life long investment for your family in mind, you cannot go wrong.  Try not to get hung up on all of the "what if's" of the decision, and try to consider the variables of "timing the market" as a guideline not as a deciding factor on your move. You will always be the best predictor for what works best for you. You cannot go wrong if you've made the best decision you know how to for your family's future!

Buying a Fixer

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Have you ever seen the movie The Money Pit? This was a great 80's movie that shows an exaggerated reality of a couples not so great home purchase. Obviously, this is not the norm situation, even with a "fixer-upper". But you get the idea that they have gotten way in over their heads as far as their initial expectations about the home.These days with TV shows like, "Flip or Flop and "Fixer Upper", we all think that a home that needs work would be the best way to save some money on a purchase, but this is not always the case. Yes you might be saving money on the list price on a property that needs a little "TLC", as some realtors describe it, but there are other considerations that need to be made before you sign those purchase docs.

Get an Inspection from Someone who has Experience with these kinds of Homes

During the first few days of your buying process, you will have an inspection done on the property. They will look for all kinds of issues with the home and they will be able to give you a good idea of what you should expect as far as any future maintenance and immediate maintenance is concerned. This individual should have experience working with fixer-uppers because they will be best suited to tell you about the home's specific issues. As they walk through the home, make sure to follow them as they will be pointing things out that you may have otherwise missed with an inexperienced inspector. Also, make sure to have a list of your own with items on it you wish them to check. Such as: roof, plumbing, electricity, foundation, general structure, windows and doors. Don't forget to take copious notes. These are all pretty standard but since you are looking at investing a good amount of money to fix up, you will want to be sure to dot every "I" and cross every "T".

Adequate Funds Earmarked for Fixes

Decide what kind of a fixer you will be able to proceed with. There are different levels of fixer uppers ranging from, a full "gut job" to simple cosmetic fixes. In addition to the funds needed for your total purchase, including your down payment and closing costs, you will need to have banked a significant amount of money for these inevitable repairs. The last thing that you will want to do is assume that you will be able to just "live" with the condition of a fixer until you have saved more money down the road in order to rehab, that could be more than you bargained for.

Loans for Fixers

Depending on what type of loan you qualify for, FHA or Conventional, the bank will have to approve the condition of the home in order to lend to you. Typically they will send out their own inspector to see what type of condition the home is in. As far as FHA's are concerned, they are easier for buyers to get qualified for, but these types of loans can be tricky because the banks are much more critical about issues with the home. Most of the time, they will want certain fixes to be made prior to the close of your escrow. Conventional loans are a bit more lenient. This loan is harder to qualify for but once you have, they are much more forgiving about the lending requirements for the fixes of the home.

The moral to this story is Do Your Homework! Make sure your expectations are reasonable and you understand this type of home purchase and the possible pitfalls.

How is the Real Estate Market?

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There's a lot of speculation that goes into people's various predictions of the Southern California real estate market. Some say that the market has "peaked", while others say that, "home prices are still rising with no end in sight". And some are left questioning, "could both be somewhat true?" These are the thoughts that one could be considering when deciding whether or not to make a move in the real estate market. Beginning your journey through the buying or selling process can be overwhelming in and of itself, so having the answers to some of these questions will help to put things in perspective and enable you to confidently move forward in your action.

"The Market Has Peaked"

This refers to the highest point that the prices of houses have risen to in a specific period of time. This statement could be true, but the truth is we don't yet know if the housing prices are at their peak yet. They could continue to rise or they could start falling. There are quite a few variables to be considered when deciding if houses have hit their highest point. I believe the best way to know this is by looking backward. You can see it in hindsight where the housing prices peaked within a certain period of time. But use this only as a relative measure to the many other factors that should be at play in your decision on whether it's the best time to buy or sell real estate.

One important variable that might help you to see things more clearly are the interest rates. The interest rates definitely have a crucial impact on the housing market. You will want to keep an eye on this as the rates can sometimes price you in or out of an area that you may have your eye on.

"Housing Prices are Still Rising"

Bottom line is, in a "normal" real estate climate, housing prices will always rise year over year. There have been few exceptions to this rule, but far and away houses gain value each year. If you look at any standard housing market table, you will be able to see that as far back as you can get reference for, housing prices tend to go up. Typically about 11% on average. There have been some slower rising years, being 5% or 6%, but nevertheless you will eventually see return on your investment in the long run. Like every investment, it has it's ups and downs, but generally speaking, investment in real estate will be a safe place for your money.

In addition, there are other variables that may help to gauge where the market is currently. A big consideration is in the law of supply and demand. When there are less homes available for purchase on the market, seller's can demand higher prices because there's more competition. Conversely, if all of a sudden people start putting their houses up for sale, so much so that there are more homes on the market than buyers, that will drive the prices down. A good real estate agent will be able to educate you on what the specific neighborhood homes are selling for in your area. In doing this, it will help you to get an idea of how much you will pay or what price you will need to list your house at so it will sell in an appropriate period of time.

Although it is important to consider these questions when thinking about a move in the real estate market, the number one variable for timing is YOU. When the timing is right for you and your family, we would love to help you through your process. Call us anytime for more information about your real estate options in today's market!

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                      How Do I Know I'm Making a Good Investment on My Home Purchase?

Here's the bottom line, you will never know for 100% certainty that you are making a good investment on your home purchase. The truth is, the Real Estate Market is and will always be extremely volatile. Ultimately we have no control nor are we able to predict successfully the investment in the long run. But, there are ways to curb the somewhat inconsistent behavior of the market by making good choices for yourself when picking a home. There are several things to keep in mind when owning a home, I have compiled a brief list:

1. Area, Area, Area!

Although there will always be some dips in the market, generally speaking, the values in real estate have been continuing to rise over time. The first thing that you may want to consider is the neighborhood. Choose a neighborhood that has been rising in value over time, a good realtor can help you do this research.  Some neighborhoods may rise at a slower pace and some quicker. And then there are those neighborhoods which continue to decrease in value, with hardly an end in sight. Those are typically the crime ridden or the severely dilapidated areas.  But, you can encourage the steady rise in the value of your purchase with the best neighborhood you can choose within your budget. Most anything can be changed about a house but you can't change the neighborhood itself. You will get the best return on your investment by buying a less expensive home in a great neighborhood than the most expensive house in an ok neighborhood.

2. Maintenance

Another thing you want to look at is the maintenance on your property. Over time it is important to keep up with regular fixes and updates, such as; plumbing, electrical, flooring, paint, roof and any outside maintenance. Although you may not be considering moving for a long while, you will not want to wait until the last minute and spend a ton of money and time on doing those things. If you defer, you may only have two options, to sell "as is" which means that all of those fixes and updates will be on the new owner, with a cost to you in the form of a lower sales price, or the other option will be to invest a lot of time and money into updating and fixing the deferred maintenance, hopefully getting the money out that you put in at the last minute. Like anything else, if you take care of a property, it will hold it's value in the long run.

3. Upgrades and Remodeling

While upgrading and remodeling are usually good things, some people do not stop to consider what their changes could do to the value of the home. For instance, deciding to make a four bedroom family home, in a family neighborhood, a two bedroom home. I have seen this done! This couple, wanting to update to their taste and needs went a little overboard by not considering the long term ramifications of their choices. While they clearly spent a great deal of money upgrading their kitchen by expanding it, upgrading the flooring to expensive tile and adding a "dressing room" in their master suite, they also thought it a good idea to tear down the walls to a bedroom to make a larger entry way and cut another bedroom in half, enlarging their master bathroom and making a separate dressing room. Now, although they updated to their ultimate vision, they failed to consider what the eventual resale value would be, in the eyes of the vast majority of people purchasing in that neighborhood. The result was that when it came time to sell their, now 2 bedroom 2 bathroom, home, it sat on the market for several months. This was in a highly desired neighborhood with low inventory! A 4 bedroom 2 bath, with a lot of square footage, home would've been snapped up immediately had they not deleted bedrooms. This couple eventually lowered the selling price considerably in order to get it sold. My guess is that they lost some money on their home because of their large investment in upgrades that would not be appealing to most buyers.

Something also to keep in mind is that everything is relative. If you plan on staying in a house until the day you die, you may not care about it's future resale value. But for the majority of people, do your homework when picking a neighborhood, do your regular maintenance and consider resale value when making major changes to your home. If you think about your asset for the long haul, you'll help to control the value of your investment in the future.

Why is it a Seller's Market?

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        You may have heard over the years, "It's a Seller's Market". But a lot of people are uncertain of what that means. The actual definition is this: A market which has more Buyers than Sellers. High prices result from this excess of demand over supply. This means that when there are more people seeking to buy a home than there is inventory, there may be several buyers who will want to bid on the same property. This, in most cases, will drive up the price of a home's value.

As you may have noticed, in the past several months that the real estate market trends have been shifting. For much of 2015, the market was a bit more balanced, the supply and demand were weighted about the same. Inventory in quite a few areas in Southern California has been declining recently. So again, most real estate analysis' are predicting that 2016 will be a "seller's market."

Generally, here are the characteristics of a sellers' market, according to Reality Times:


1. Booming local economy. Local businesses are hiring at a brisk pace. New companies are opening up shop.

2. Low existing housing inventory. More jobs are coming into a market where there's not enough inventory to house all the workers, thus creating financial pressure on local resale units.

3.  Home sales prices are escalating. Over the last several years, the national increase has been in the five to seven percent range. In a seller's market, it's not unusual to experience double digit increases. Some communities could double in price in just a year or two.

4. Buyer contracts begin to come in non-contingent. Buyers want to purchase a house, period. They no longer offer under list price, ask to sell their house first before settlement, or try to buy without financing already approved. There is no negotiating for the "perfect" terms. Getting the house, is the perfect term.

5. Seller subsidies disappear. While buyers used to ask for some sort of assistance -- lower price, points paid, closing costs -- the buyers must come to the table without any help from the seller.

6. High down payments become the norm. Buyers benefit from high appreciation and begin bringing down payments such as 25-plus percent to the transaction.

Does any of this ring true in your area?


While we are starting to see this trend emerging, it is still not too late for buyers to benefit from buying now. The rates are still at an all time low. The Feds are expected to slowly raise the interest rates over the next year or two, but we are not there yet. Buyers are in a very good position to take advantage of rates that may never be this low again. Another way buyers are still in a good position is the season. Typically we find that most people who are wanting to buy do so more often in the spring and summer. The benefit to a buyer who makes a purchase in the off season, is that even though inventory may be low, your competition with others buyers for the same home will also be extremely minimal. It's time to buy some Real Estate!

Staging vs. Empty When Selling a Home

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These days, home buyers usually start their home search online. One major factor that attracts them to a home is having good quality photos. In most cases, the more images of the home online, the better. In general, viewing  a room with furniture will give the buyers an idea of space. Viewing an empty room tends to be more ambiguous. The goal is to get as many interested buyers visually as possible, so by correctly staging your home before you sell it, you may get more than what you're asking.


Empty Rooms

You must show your home's potential! When you have an empty space, it may not send the right message to the prospective buyers. Typically, people have a hard time visualizing themselves in a vacant, empty room. By placing a few strategic pieces of furniture and decorations, suddenly the room comes to life and the buyers will be more drawn to that space.

Size Matters

By walking into an empty space, most people will have a hard time with the concept of space. It's hard to know what will fit in each room if there aren't markers to help them, such as furniture and décor. By decorating these rooms, considering the optimal amount of space, it gives buyers genuine perspective on how their furniture will fit in these spaces and therefore they will see the potential of the home for them.

Ideal Décor

The most important things to keep in mind when decorating are to maximize space in each room and show room potential appropriately. For example, placing a mirror on wall in a small room will create the illusion of more space. Also, putting potted plants around will bring to life an otherwise vacant home. Try to show as much usable space in each room as possible. Buyers love options, if they think there is a lot of usable space, even if the room happens to be somewhat small, it creates the illusion of a larger room.

Hallways

Hallways do not have to be just a means to get from room to room. Again, people want options for  rooms as well as potential, even hallways. For example, the end of a hallway is usually a great place for a mirror, a small table or some attractive artwork.

Room by Room

You will need to walk through each room and look for ways to spruce them up. Placing eye catching, modern décor will make your home memorable when buyers are looking at multiple houses. For example, having new dishtowels or brightly colored flowers in the kitchen can make it feel like the heart of the home. Do the same thing in the bathroom, find attractive details to stage with so that the house feels more livable. Going through each room and placing these items strategically will surely keep the buyers coming!

Don't Do This

Besides leaving a house completely empty, there are a few other things you will want to keep in mind when staging the home. Think about the size of the space, if it is smaller, do not use large bulky furniture, it will instantly make the room shrink. If you have a large space, you can be a bit more liberal with the size and amount of furniture you want to use. Adequately show the size of the room by using comparable sized furniture and décor to each room size. Also, do not put heavy window covering on the windows, this will only make the room seem dark and buyers tend to like light and bright spaces. Additionally, do not over decorate! This will also make the room feel cluttered and the buyers won't be able to see themselves in that space.

Stagers charge various amounts for their services. But they have access to a ton of inventory from warehouses. They can help you put together an appropriate and attractive theme that will most likely earn you some extra return on your initial investment!

Should I Buy a Condo or a House?

                                                   
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When it's time to buy a property, many first-time buyers consider two options, a condo or a house. Many people struggle with the various pros and cons of owning each. Ultimately there is no wrong answer to this question, you have to figure out what will work best for you. There are several things to keep in mind that may assist you in determining your best option.

Location and Lifestyle

Consider first where you want to live. The majority of the time condo buildings are clustered in certain areas, as well as single family homes. For example, urban areas tend to be a bit more impacted because those areas are centered around businesses, movie theatres, shopping and restaurants.Therefore, the type of housing that you will generally find here are condo complexes.
 Conversely, single family homes are usually clustered in suburban areas. These neighborhoods tend to be quieter, more spread out and can be several miles from shopping centers.

You also need to look at your lifestyle and figure out what makes sense for your needs. For example, if you work near the urban area, enjoy being able to walk to activities, have a small family, do not have a large budget, a condo may be a nice option for you. If you are beginning to build your family, you want more room for the long haul, or simply that you don't want to share walls with others and it fits within your budget, a house might work best for your growing needs.

Maintenance Costs

You can't avoid maintenance costs when you own any kind of  a property. But there are a few differences between what you can expect to have to pay for in a condo or a house. When you purchase a condo, you also agree to pay a monthly fee to the Home Owners Association (HOA). The good news is that this fee handles some of your maintenance costs for your property. They typically handle most things on the outside of the building and the upkeep of the amenities that the community offers. Such as; painting the building, landscaping, pool, gym, etc. Although, most issues with the inside will be the owners responsibility. Having said this, with these benefits that the HOA offers, they also will have a list of rules and regulations that you will need to abide.

When you purchase a single-family home that property is wholly the owners responsibility. Everything that the home needs, in the way of updates and regular maintenance is financially up to you. But with this, you are your own boss. You have complete domain over your property and you do not need to ask permission for anything.

Lending and Price

Another thing you want to consider when deciding between the two property options is, the lending process. You will want to get in front of a lender that will first get you pre-qualified to help determine your price range. This alone may narrow your options for purchase. But also, your lender will tell you what kind of a loan you will qualify for, whether it be Conventional, FHA or VA. Each of these loans requires a different minimum down payment and FICO score minimum. This may also help to narrow your search. And consider this, most condo complexes do not qualify for a FHA loans. That means that you will have to have a Conventional or VA loan only. Now houses on the other hand will take any of these loans, which widens your options greatly.

The price difference between a condo and a house is also something to look at. For example, you may be looking to get a nice, large condo in a good area. For the same price range in a home, you will find a smaller, fixer home, in an area that you may not like as well. Now of course there are exceptions to this rule, but generally speaking, you will spend a great deal more on a home  than on a condo.

Again, both of these options are good ones. Sometimes the process of deciding what's best can seem overwhelming. But, taking things step by step will help to lead you in the right direction!

Tips for Home Buying

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First-time home buyers, even seasoned ones, might often feel burdened and overwhelmed by the many steps that there are to get to home ownership. If you feel this way, you're not alone! This is definitely a natural feeling and emotion to have when making this kind of a huge financial decision. What may help is laying out a plan to assist you in putting these several steps in order, therefore making the path to homeownership more clear and less scattered. I have comprised a list of tips that will support you when beginning your home buying endeavor.

1. Budget

Make sure to get with a lender that will pre-qualify you prior to house hunting with a real estate agent. There's really no sense in going much further down the home buying road if you haven't set a budget for yourself. This can really make you feel anxious and confused if you don't know what price range you are searching in. Don't rely on your own feelings about what you think you can afford, house budgeting is a logic and numbers game, not an educated guess. The peace that comes from having a pre-qualification letter from your lender will set you on the right footing.

2. Choosing a Realtor

Do your research!  The last thing you want to do is open the white pages and pick someone at random. A great way to choose an agent is by talking with your friends and family members to ask for referrals. If you trust these people's opinions, you know that they wouldn't steer you in the wrong direction. The internet is also a good resource for your search. If you decide to find an agent off of the internet, make sure that you research all of their reviews. Just because an agent pays to have their face on many websites doesn't mean that they will do the best job for you. Yelp is a great way to screen agents...although you may have to weed out the genuine reviews from the inflated or deflated ones.

3. House Preferences

Start by making a list of priorities of specifications for your home, then clearly convey these things to your realtor. This list should include all of your must-haves, wishes and deal breakers in a home. Such as; areas, style of home, number of bedrooms, number of bathrooms and the size of the home. Also, make sure to think about how you want a home to work for you for the next 5-10 years, not just the short term. You never want to be forced a move, if you think about your families long term needs, you'll be in control of your next move.

4. Give a House a Chance

When viewing homes, keep in mind that NO home is perfect and will fit your exact needs. Keeping an open mind about each home will allow you to be flexible and possibly even see a homes' hidden potential. On the flip side, it's also important not to get too emotional about a home. Sad but true, when you become emotionally invested in a particular home, it can cloud your better judgment in making the best choice. Try too look beyond the beautiful hardwood flooring and the granite countertops and look at the homes true quality and condition.

It's Time to Buy Some Real Estate

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There has never been a better time to buy a home! With interest rates at an all-time low and housing prices cooling off considerably, making 2016 the year you buy a new home will be one of the best financial decisions you've made.

 There are 5 reasons that will make it easier than it's ever been to buy a home this year; looser mortgage credit, lower down payments, cooling home prices, low rates and high rents. A set of new guidelines from Freddie Mac and Fannie Mae set the tone for this change earlier this month with more "normal" lending requirements, according to The Urban Institute. These government sponsored giants are lifting some of the harsh regulations that were previously in place, and they are relaxing on credit and underwriting requirements, therefore making it easier to qualify for a home loan.

Another reason why it's a great time to buy is because Freddie Mac and Fannie Mae have also decided to back loans with as little as 3% down, making it much easier for new home buyers to get  a leg up in the housing market. “Our goal is to help additional qualified borrowers gain access to mortgages,” Andrew Bon Salle, a Fannie Mae executive vice president, said in a statement. “We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers.”

In addition, housing prices are continuing to cool off. The overall pace of housing price growth has slowed considerably. Also, increases in housing inventory may also help to push down prices in some places. Depending on your area, this may vary. That being said, studies have shown an overall increase in home values. There may be a "cooling", the increase is at a lower rate than usual, but housing values do continue to rise yearly.

Also, rates are at an all-time low. A host of economic and geopolitical factors combined to keep rates lower than anticipated this year. Right now the average for a 30- year fixed rate is about 3.5%, far below historical averages. According to Janet Yellen, Chairwoman for the Federal Reserve, Increases in interest rates probably won’t come before mid-2016 at the earliest. This gives you plenty of time to take advantage of the low rates available now before they go back up.

The price for renting is also at an all-time high. Renters in metropolitan cities spend nearly 50% of their monthly income on rent!

If you’re growing your family and need more space, it may make more sense to purchase rather than rent a home. This gives you control of your own property while letting you build equity in the home. It’s certainly better than giving your money to a landlord.

What to Look For In Your Next Home

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       Home buying, especially for first-time buyers, can be an overwhelming process. You have earned, saved and sacrificed for the day in which you can own your own home. Every penny that you put into that new home will be equity toward your family's future. So we can safely say that determining what house will be best for you and your family will be one of the most important decisions you will make. Consider the long term investment that you will be making in that home, as opposed to your present lifestyle. For instance, a young couple who is buying their first home may be more apt to choosing something that they can entertain their family and friends in. But chances are in a few years that may give way to the needs of small children and may cause them to start rethinking their need to entertain and more about their needs of raising a family, which also may include what kind of schools their children will be attending. If you don't want to have to make another move in a few years, it's important to look at a wider range of qualities that will help you get the most quality of living, longevity out of your home and financial future. There are several things that you may want to consider when searching for your dream home, and they don't have anything to do with whether the flooring is carpet or wood. 

Structural Issues

 Although it is true that you will get an inspection done after your offer has been accepted by the seller, you may want to avoid the heartache of getting emotionally attached to a property only to find out that there are issues that should be "deal breakers". By touring these homes with a keen eye, it may help you to avoid making a costly mistake. It's a good idea to educate yourself on the warning signs of any significant issues and even bring someone along who can also recognize these issues. Chances are, they will be more objective because of their lack of emotion when it comes to pointing out potential costly fixes. In touring these homes, along with getting excited about where your couch will look best, you also want to keep your eyes out for things such as water stains on the walls and ceilings and cracks in the foundation. Although it is not always the case, there may be significant problems that can be expensive to fix. Another thing you may want to look for is deferred maintenance, such as; full rain gutters, caulking in the bathroom which has become detached or a deck in need of re-staining and also, duct tape holding things together. Again, these may not seem like large issues on the surface, but it may indicate a certain poor upkeep by the owners, which ultimately may point to larger issues. 

Neighborhood Issues

 Even if you've found the world's perfect home, if it's next to a superhighway, you won't be happy there, not to mention the lack of return on your investment, should you decide to sell. Although it is important to keep in mind the quality of school district that that home is in, there are other possible indicators of a good neighborhood. So before you put an offer in on a house, you should first take a walk through he neighborhood and ask yourself these questions; are there children playing outside? Are people gardening in their yard? How are the homes decorated/maintained? Are there people out walking their dogs? Are there cracks in the sidewalks? Is there a sense of neighborliness? If you are satisfied with the condition and surroundings, that will affirm your next step in making an offer on the home.

Livability Issues

This idea is much more subjective and individualized. Think about how this home will fit into your daily routine. It's a good idea to consider how difficult or easy it will be to maintain the home. For example, that large entry way with the chandelier may seem attractive now but do you cringe thinking about cleaning it? Also, you've wanted a house with a second story, but how long will it be before going up and down those stairs becomes an issue for you? And keep in mind, the larger the home is, the more expensive it will be to run heating and air conditioning. Again, you want to consider situations beyond the "now" and look at the house for what it is, a long term investment as well as the best place for your quality of living. 

Remember, the right time to buy or sell a home has to do with YOUR timing. If your family's needs dictate the sale or purchase of a home, that is always the best indicator of when to make your move! 

Myth vs. Fact: Buying and Selling Real Estate

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1. "The perfect time to buy or sell a home is in the Spring/Summer."

Myth:

Although Spring and Summer have their benefits for buying a home or selling a home, Winter also has it's perks. For one thing there are less competitors bidding on the same home. In this kind of a market with low inventory, that is huge. As you may know, if there are multiple offers on a home, that will most certainly drive up the  price. Because it is a typically a slower productivity period, agents will have more time to spend with you to ensure you get the best deal on your optimal property. Also, not only are agents more available, but so are the banks with their loan turn-around time. If the banks are less busy, your waiting time for loan approval and processing could be far shorter than what it usually takes.

2. "I have to update and make improvements on my home in order to get it sold at a good price."

Myth:

Not only is it not a good idea to put a lot of money into fixing your home up for selling purposes, but you may end up losing that return on your investment all together when you go to sell your home. The time and money that it takes you to fix up your home before selling is typically not worth the hassle and will probably put you behind the eight ball. Home buyers will usually want to put their own unique stamp on their new home, not pay for someone else's upgrades. So, putting $30,000 into fixes and upgrades will not necessarily get you more for your home. In most cases, you will usually not even break even on the investment of time and money. Conversely, buyers do want to see a bit of a clean slate. So doing the minimal, like painting and light patching, will be enough to get you what your home is worth.

3. "If I have a short-sale on my credit, I only have to wait 2 years to buy another home."

Fact:

Good news, if you have had a short-sale over 2 years prior, you can be eligible to buy a home again now. That is the time period that the banks require you to wait until they will lend you the money to make another home purchase. Although, if you are lucky to have the full amount of the home in cash, you can buy the day your short sale is final.

4. "I need 3% to put down on a home."

Fact:

The majority of standard loans only require you to have 3% of the purchase price to put down on a home. If you qualify for a VA loan, your down payment requirement will be 0%.

5. "I can't afford a home in my price range."

Myth:

This is one of the most common misconceptions that people have when thinking of purchasing their own home. When you consider how much you're paying in rent monthly, in most cases, you should be paying that for a mortgage instead of to a landlord. Sitting down with a Real Estate agent will help you to sort out properties that you may be able to afford in some of the areas that you'd like to live. We pay some of the highest rents in the United States right here in Southern California. For the price of some rentals, buying could even be a more affordable option for you.

6. "My credit scores are not good enough to qualify for a home loan."

Myth:

The fear of the unknown is what keeps people from investigating their options. In fact, there are banks that will lend to you with a score of 560 or better. Sitting down with a mortgage broker is your best way to find out if you can get qualified.

Adding Value to Your Home

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     The first step to consider when you're thinking of selling your home is to figure out how much your home is worth in the current housing market. Before you invest in upgrades to your home, ask a realtor to do a Market Analysis to help you accurately access your homes value in it's current condition. This way you can decide if it will be profitable for you to add upgrades or to sell without.

     

    If you are considering adding value to your home with some upgrades, you may want to keep in mind some of these ideas. Buyers, nearly across the board, have their own checklist that they have put together when looking for a new home. Although the saying may hold true, "Beauty is in the Eye of the Beholder", each buyer has their own personal wants and needs, some are specific to them and some are more generalized. It can be crucial to whether your home sells fast or gets overlooked by some buyers.

   

    If you've ever wondered about valuable upgrades to your home, I have compiled a generalized list of features that may set you apart from other sellers. Hopefully this will help you when preparing your house to sell and for getting top dollar.

 

1) Updated Appliances

    Buyers look for modern looking appliances, especially in the kitchen. Visually those items can grab their attention and knowing that they will not have to spend additional money to do the upgrades themselves is a plus. These days, it may also be important to potential home buyers that the appliances, such as the water heater and furnace, are energy efficient. Upgraded appliances not only look great but they can also put money back 

in the pocket of the buyers monthly. When these items are upgraded, it also makes the buyer feel that you have kept up with the rest of the property.

2) Solid Counter tops

Buyers will also tend to look at things like counter tops, both in the kitchen and baths. Solid surfaces, such as granite, marble or quartz, are variances that may make a difference to a buyer. Solid surfaces look nice and tend to be more durable and long lasting, if kept up properly. This will most definitely give you a leg up on the competition.

3) Hardwood or Ceramic Flooring

When a buyer walks into a home with hardwood or ceramic floors, that almost always ticks one of their boxes upon entry. When buyers see carpet or vinyl flooring they tend to see that as something that will have to be replaced sooner than later. You can never go wrong with these types of upgraded flooring.

4) Two-Car Garage

These days buyers are looking for an optimal amount of space, a two-car garage will be a great selling point for them. Something that people may overlook when deciding on upgrades to their home is the value that this may add. A two-car garage not only provides space to park two cars but buyers will like the added storage space that a garage provides. 

5) Master Suites

 Unequivocally, master bedrooms are a huge selling point for buyers. This addition to your home will not only be an attention grabber with the bedroom and connected bathroom, but will most assuredly add a great value to your home.

6) Walk-In Closets

Another great thing to consider when wanting to improve the value of your home is enlarging closet space, or adding a walk-in closet. Again, space is key when buyers are looking for a home to purchase. This could be an easy way to boost your homes value.

7) New Windows

    New windows add great value to any home! Windows are important when it comes to maintaining the indoor climate. Therefore, buyers often look for homes with newer, efficient windows that will help them keep their energy costs down.

Not to mention they create attractive curb appeal!

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Renting vs. Owning

                                                     

                     

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Buying a home is the largest single investment most people ever make, and this also makes it one of the most important decisions they will face. We have listed ten reasons why we think it is important for everyone to own a home.

Freedom and Privacy

The property is yours to do with as you choose. You are not at the mercy and discretion of a landlord or owner.

Inflation Protection

Your rent will keep going up, as do house prices. Once you purchase a home, you, not the landlord, reap the benefits of it's appreciation in value. Historically, home prices will maintain value even in recessionary times, and increase in normal or good economies.

Tax Benefits

Many interest deductions have been eliminated from the IRS regulations, yet mortgage interest on your home is a very healthy deduction, especially in the first years when the bulk of your payment is interest. Other deductions are also available to homeowners for energy credits or other improvements. Property taxes are also deductibles.

Improvements

A renter gains nothing when he improves the house he lives in. A homeowner reaps a return on those improvements when the house is sold.

Retirement Security

Unlike rent, which goes on forever, a mortgage is paid off at some point in time. This can provide a "rent-free" retirement for you.

Environment and Lifestyle

It is usually apparent whether a neighborhood is made up of owners or renters. Homeowners have a financial stake in their neighborhood, and consequently, take good care of their property. This in turn helps your property to continue to increase in value.

"Trading Up"

In today's real estate market, not everyone can afford their dream home on their first purchase. By getting your foot in the door by purchasing a home that you can afford initially, you will be in a great position to upgrade in the near future. In addition, by making any improvements and upgrades to the property, and with normal appreciation, many people are able to sell their first house and "trade up" to that ideal home of their dreams.

Investment or Income Property

A second home is an excellent tax deduction and investment. Interest on a second home is also tax deductible, and you will be able to gain profits and tax benefits from renters.

"Effective" Interest Rate

The interest you pay will be much less than you think. Because the interest is tax-deductible, you may be able to change your withholding or receive a larger tax refund.