Mortgage lending rates are an obvious variable in determining the affordability level of a home, and, yes, these rates are very low. But it’s also important buyers consider an even more obvious variable – the home price itself.
On that front, the data clearly point to stable and rising home prices. Recent pricing stories sourcing Trulia, CoreLogic, Zillow, and the NAR show stable and rising prices in more local markets that spread across a wider geographical swath of the United States.
Even the S&P/Case-Shiller home price index, a lagging but consistently pessimistic index, points to rising home prices. The index recently posted its first back-to-back monthly gain since the spring of 2010. Not surprisingly, the index confirmed the price rebounds we already know are occurring in Phoenix, Miami, Tampa, Minneapolis, and Dallas.
The point we want to emphasis is not to overlook the obvious. Sure, buyers may be able to save a few basis points on lending costs in coming months, but that could easily be offset (and more than offset) by rising home prices.
Phone: (415) 694-5533
Whether you are looking to refinance your home or to purchase a new home, an appraiser is going to have a big impact on whether you get your loan. Anytime you get a home loan, the bank will send out an appraiser to determine the value of the home.
I attended a meeting yesterday with one of the top appraisal companies in the Bay Area, a company by the name of Axis. Their very difficult job these days is to let the banks know exactly how much your home is worth.
Receiving your appraisal can sometimes be shocking, particularly if you believe your home is worth more than all of the other homes in the neighborhood. Following are just things that you need to take into consideration when reviewing an appraisal you have received:
1) If you have spaces in your home that are unpermitted, the appraiser cannot consider them in their appraisal. They will only consider legal rooms in their appraisal and their primary consideration is the gross living area, not the garage, basement or stairs.
2) Is every part of the house connected to the rest? If you cannot access the whole home through the finished interior, the separate entry area may not be considered as part of the gross living area (GLA) and is given a separate value, even if it is a legal space. Read more
Inspections are the buyers right. You as a buyer have the right to inspect the home if your offer is accepted by the seller. This is your chance to find out as much about the property as you can. Depending on what type of investment you have in mind, would depend on what type of inspections you should get on the property. Areas, weather, years, all of these things need to be taken into consideration when deciding which inspections to do. Using your due diligence and inspecting the property is very much to the buyers advantage and at times to the seller as well.
The final walk – through is done at the very end of the transaction a few days before close of escrow. You can refer to your purchase agreement for future reference. You can find more elaborate information regarding the final walk- through in the section labeled “Final Verification of Condition” again, verbiage may vary depending on which agreement you use. The walk- through is used to solely verify the terms and conditions of the contract have been executed by all parties of the agreement. NOT to re-negotiate terms and conditions!
Remember, these terms are not always clear or at the very least create more questions, we are always here to answer any questions you have. As tech savy as we are these days its just silly not to ask when you can have the answer at your fingertips!
California’s Prop 90 allows a home owner in California to sell their home, buy a replacement property in a participating county, and move a lower prop 13 based tax value from their old home to the new county for the purpose of home tax assessment. It allows the adjusted base year value of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.There are some restrictions like the claimant or claimant’s spouse must be at least 55 years of age. The replacement property must be your principal residence and must be eligible for the homeowners’ exemption.
Participating counties are Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara and now, El Dorado County.
There are also purchase price restrictions on the new replacement property. Read more
Recently, it seems that all the buyers have come out of the wood work….
We have been inundated with large groups at our open houses and receiving large amount of “sign calls” and inquires on our websites…
But the one thing that has not changed is fear…Depending on where the property is and the price range that it is in, there is a different strategy on how to make an offer. I think the public understands that the interest rates are great, and inventory has lessened, and buyers are hearing about multiple offers; but there is something that is preventing them to make a move. My advise: Work with your agent…let them help you understand… ask a lot of questions.
Just this week, I have encountered buyers who I met a few weeks ago, they saw this home in their price range, and have their financing in order, but they needed time to “think about it”. When they came back to reconsider the home, it was gone (in escrow with multiple offers). Had they written a couple of weeks ago it could have been theirs.
Don’t lose your opportunity. There are several ways to protect yourself from competition and allow you to participate in obtaining home with your price and terms.
About 3 weeks ago, I wrote an offer on a bank owned property in Hayward for a client of mine. I tried contacting the agent representing the seller to let her know that I was sending an offer, but wasn’t able to reach her. So, I emailed the offer and, also, faxed it to make absolutely sure that she received it by the deadline.
Over the course of the next 3 weeks, I tried diligently to reach this agent. I tried both calling and emailing. Sometimes when I called, I would get her voice mail. Other times, I got her husband who was listed as the co-lister, but knew nothing about the property. He indicated that he had “taken the phone away from her, because if she kept taking calls, she would never get anything done.” Read more
We Realtors often bandy about tons of real estate jargon. We talk to our clients and friends about short sales, REO’s, contingency periods, etc. I have come to realize, however, that just because we know what all of this stuff means, not everyone does, so I thought it would be helpful to describe some of the terms we use. Hopefully, this will give you some idea of what we’re talking about as we rattle on and on and your eyes are going bleary! Here goes:
Contingency Periods: We, generally, refer to these when doing our contracts. As an example, we tell you that you will have a 10 day period to “remove your property condition contingency” or 20 days to remove loan and appraisal contingencies. What this really boils down to, is that these are the time frames during which you will have the right to get your deposit back if you cancel the contract. Once you “remove these contingencies,” you are no longer entitled to get your deposit back, unless you can prove some sort of fraud. Read more
Calling all Teachers… Incase you didn’t know, CalSTRS is the California State Teachers Retirement Program that provides retirement related benefits to teachers in public schools and community colleges in California. Back in 1984 CalSTRS developed a home loan program which was designed for an additional option for home financing for it members and retirees. Giving its members and retirees additional mortgage loan options at competitive rates. This is a great option for you first time home buyers as it only requires a 3% down payment. You can compare this program with an FHA loan as it requires a 3.5% down payment. A big thank you to Dean Rizzi of Guarantee Mortgage for sharing this program with us. Click on the flyer for additional info and qualifications (Once you have clicked on the picture click once again to see a clear copy or to print out the flyer)