Selling?

Five things that factor into comps

You may think that sale price is the only factor when you’re looking at comps and trying to set a price for your listing. But it’s actually a bit more complicated. Here are five things that affect comps that you might not be aware of.

  1. New construction nearby: Because of low prices for lots and varying prices in home building materials, new homes can actually be cheaper and cost less per square foot than existing homes. If there’s a lot of new construction nearby, that can affect the price for your own listing.
  2. Renovations: Recently renovated homes typically sell for more than homes that haven’t been updated in a while. If you’ve recently upgraded your home-especially sought-after upgrades like the kitchen or master bath-your home should be priced appropriately.
  3. Developable lots: Not all lots are created equal. Even if the square acreage is the same, a lot that’s easily developable will get a better price than a hilly or rocky lot that needs a lot of preparation.Comps
  4. Listing price vs. sale price: Whether sellers actually get their asking price depends greatly on the market. When you’re pricing your home, it’s important to look at sales prices, not just listing prices. The listing price doesn’t always accurately reflect what a home will sell for.
  5. Location: Nearby amenities, safety, schools, and noise levels can vary greatly within a neighborhood. Homes in more desirable parts of the neighborhood will sell for a higher price, all else being equal.

Improve or Move?

Improve or move?

Unless you built a custom home, you probably have a long list of things you’d like to improve in your current home. Browsing online listings might get you in the mood to upgrade to a new home, or you might be thinking about renovating your current home after binging on HGTV. The answer to renovation vs. relocation depends greatly on what you’re trying to fix.

Thinking about a new kitchen? If you’re dreaming of a chef’s kitchen with new appliances and beautiful cabinets, renovating your own kitchen gives you incredible ROI and is less costly than moving. You’ll increase the value of your own home if you ever decide to sell, and there’s a great sense of accomplishment that comes with completing a custom renovation.

Need more space? If you’re running low on bedrooms, there may not be a lot of options. Converting an existing room to a bedroom doesn’t create any new space. If you’re in a condo, an addition is probably impossible. And additions can be expensive even if it’s a possibility. Moving is usually the best option.

If the neighborhood isn’t ideal You may have seen some potential for your neighborhood when you first moved there, but perhaps it still isn’t welcoming the shops and restaurants you expected. If that’s the case, consider moving. There’s no sense in waiting years for the neighborhood to improve, especially if you can move to a house in the same price range in a more preferred part of the city.

Tackle these Projects in a single day

Tackle these projects in a single day

It’s easy to get stressed out just hearing the word “renovation.” You’re instantly thinking of having your home life disrupted by construction debris, cluttered rooms, and loud noises.

But you don’t have to spend a ton of money and brace yourself for months of inconvenience to upgrade your home. Here are a few projects that you can knock out in a single day, and they’ll greatly improve the look and enjoyment of your home.

Paint or replace an exterior door: If you know the correct dimensions and specifications for a replacement door, replacing an exterior door is a quick and easy job. That’s even more true if you’re repainting it. Preparation and a few coats of paint will only take a few hours.

Plant some low-maintenance trees: Young evergreen trees are relatively simple to plant, and after some heavy watering in the first few weeks, they’re very easy to maintain. They’ll add some color and texture to your landscaping, instantly improving curb appeal.

crop_sm_Pic5New light fixtures: Whether they’re on the interior or exterior of your home, something as subtle as light textures can have a dramatic effect. Swapping out traditional fixtures for something modern or industrial can completely transform a room.

New hardware: Drawer pulls and door knobs are easy to change out, and like light fixtures, they have a big impact. You’d be amazed how your kitchen or bathroom could look with new hardware.

What does a Title Company do?

What does a title company do?

When you purchase a home, a title company will research the property to ensure that you are the rightful owner. They’ll look through records for anything that might cause problems-ownership disputes, restrictions, unpaid taxes, liens, and more. Their goal is to document the chain of title and identify any issues that could become major problems down the road.

At the end of the process, the title company issues a title opinion. This is a legal document that states that the title is valid. The title opinion is part of obtaining title insurance. The insurance protects both the owner and the lender if there is a title dispute. If another party is actually the rightful owner of the home, your title insurance protects you from financial loss.

In addition to title opinions and title insurance, title companies also handle escrow accounts and distribute money to the appropriate parties at closing. They’ll also deliver closing documents to the appropriate agencies.

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5 Big Trends in home decor

Five big trends in home decor

Thanks to websites like Houzz and Pinterest and TV networks like HGTV and DIY, it’s easier than ever to keep up with home decorating trends and find inspiration for improving your own home. Here are five of the top current interior design trends.

  1. Screen-free rooms: After a long day of using your smartphone and computer, it can feel amazing to come home and take a technology break. More and more, homeowners are creating specific screen-free rooms-perhaps a library, craft room, or listening room-where you can escape from technology for a while.
  2. Upholstered headboards: What if you could feel like you were sleeping in a luxury hotel bed every night? The bedding and mattress are an important part of that experience, but so is the aesthetic and comfort of an upholstered headboard.
  3. Earth tones: Natural colors have become increasingly popular, especially deep greens. It’s a great way to bring some of nature’s colors indoors, whether as an accent wall, in blankets and pillows, or for furniture.
  4. Black stainless steel: If you want a sleek, contemporary kitchen, black stainless steel is even more of a statement than traditional stainless steel.
  5. Patterned fabrics: While solid upholstery will never go out of style, patterns have become trendy of late. It’s an easy way to make a bold, eye-catching statement in your living space.crop_sm_Pic2

Thinking aboyt buying soon ?

Thinking about buying soon? Make sure your credit is in order

There’s no more important time to work on your credit score than when you’re about to apply for a mortgage. Improving your credit can save you a ton of money-we’re talking about thousands of dollars over the life of the loan. Here are the actions you can take that will have a notable impact on your score.

Pay down your credit card balances Credit utilization is one of the biggest factors in determining your credit score. Your credit utilization should at least be less than 30 percent of your limit, and it’s even better if you can get it below 15 percent. This rule applies to both individual cards and your overall credit limit.

It may even be worthwhile to use some of the cash funds you were planning to use for a down payment to pay off credit card balances.

Do no harm While you certainly want to improve your score if possible, at the very least you’ll want to keep it steady. Avoid opening new lines of credit if you’re applying for a mortgage in the very near future. This will cause a hard inquiry to show up on your credit report.

Take care of negative items It’s good practice to check your credit report for negative items a few times a year-you can get one free report from each of the three major bureaus (Experian, Equifax, and TransUnion) per year.

If you find any negative items (collections, late payments, etc.), write a letter to the original creditor. Explain the circumstances that led to the negative item, and request that it be removed from your report. It can be surprisingly effective, and removing a negative item will improve your credit score in a hurry. You can find some good templates for a request letter online.

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How do HOA’s work?

How do HOA’s work?

When you purchase a home, there’s a good chance you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly or annually, and it’s an important factor to consider when you’re weighing your options for a new home. So what is typically included in your HOA fees?

First, the fun stuff Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so-in theory-you’ll always have a clean pool whenever you want to use it.

Protecting the community HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property-think damage from weather or accidents.

General maintenance Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, snow removal, and trash/recycling services.

Be active in the association There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings-and the amenities they support-provide great opportunities to meet your neighbors and make your community a better place.

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Five Tips for first-time home buyers

Five tips for first-time buyers

 

No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase.

  1. Save as early as you can: Even if you think you’re years away from buying your first home, try to start saving for your down payment. It makes a huge difference in your monthly payments, and helps avoid paying Private Mortgage Insurance.
  2. Be thorough with mortgage shopping: There are countless resources out there that can help you get the best terms for your mortgage. It may seem like a lot of work to shave less than a point off your mortgage rate, but it’ll save you thousands in the long run.
  3. Consult a skeptic: You’re likely to fall in love with a home, and that can make it difficult to take problems seriously. Bring along a skeptical friend or family member who can give you an honest opinion.
  4. Be patient with getting settled: You’ll be anxious to make your new home your own, but take some time to see how your budget truly shakes out. In other words, hold off on big furniture purchases and remodeling projects.
  5. Make sure you’re happy with the neighborhood: The house may be perfect, but don’t discount the surroundings. You don’t want to end up in the suburbs if you’re going to miss walking to your favorite coffee shop, and you don’t want to settle for the city if you’re looking forward to some peace and quiet.crop_sm_Dreaming_of_home

Budget Friendly Projects..

Budget friendly projects with a big ROI

Not all home improvement projects are created equal. Some renovations may cost a lot but not add significant value to your home. This list goes in the opposite direction: Here are some inexpensive home improvement projects that will not only increase your enjoyment of your home, but will also increase the home’s value.

  1. High quality ceiling fans: In a recent National Association of Home Builders survey, ceiling fans ranked No. 1 as the most-wanted decorative item. If your ceiling fans are outdated, replace them with something in the $400 range-it’ll make a big difference when it’s time to sell.
  2. Trees: Mature trees can be worth as much as $10,000 toward the value of your home. Trees also protect your home from the elements and prevent erosion.
  3. Energy efficiency: Buyers are increasingly interested in saving energy, so any efficiency update is worthwhile. Switching from a wood to gas fireplace is a great start.
  4. Outdoor lighting: Exterior lighting is great for highlighting the accents of your home, and you can typically expect a 50 percent return on investment.
  5. Molding: You can finish a room with crown molding or railing for as little as $1.50 per foot if you take a DIY approach, and it’s extremely desirable among prospective buyers.crop_sm_Remolding

The Most Effective Way To Buy A Home In A Sellers Market

How exciting, you’re thinking about purchasing a home!

makingmemories_out_Our homes are THE PLACE!  A lifetime of recollections are made and even put away. Our memories can be made around the Kitchen table as we meet with our family to eat up our dinners of the day; eat when we have an extraordinary cook in the family, that is! Maybe, it’s not the considerable cooked feast you’ll remember, but rather the giggling shared, which is similarly in the same class as a flavorful homemade constructed supper. Furthermore, it’s not quite recently the Kitchen where recollections are made as pretty much any spot in your home can be loaded with memories. Because of this, you understand the major ordeal about purchasing a home, so you need to ensure that you hit the nail on the head. Regardless of the season, and regardless of whether you’re purchasing a home in Murrieta or across the nation, this will help you have home buying success!

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How To Buy A Home In A Sellers Market

 

We’ll examine here how to purchase a home in a Seller’s Market.

Exactly how would you do it? Do you even know what a Seller’s market is?

It’s imperative to understand the diverse Real Estate markets that will develop over different time periods.

At present here in my nearby Real Estate market of Murrieta, Temecula, Hemet in California we are encountering a Seller’s Market. This doesn’t mean that your nearby market is encountering a similar Real Estate Market. It will be essential that the Realtor you employ comprehends what kind of market you’re in, so they can guide you to turn the home buying process into your advantage and ultimateley into homeownership.

How about we Take A Closer Look At The Types Of Real Estate Markets:

Seller’s Market

A Seller’s Market, as the name implies, is the point at which the local Real Estate market favors Sellers. Usually, the inventory of homes is not more than a 6 months supply. Absorption rates measure this inventory. This is determined by knowing what number of homes are available to be purchased and what number of homes had closed the month prior to. This determines the supply of homes, as an absorption rate reveals. The last reported absorption rate for my Local market of Murrieta, California was 3.3 Months of inventory. (look at picture below)

Despite the fact that the supply of homes has expanded from a year back, regardless we’re encountering a Seller’s market with just under a 4 months supply of homes for Buyers to look over. This current Blog Post’s concentration is on our present Seller’s market and how to be able to buy a home in a Seller’s market.

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Adjusted Market

An adjusted market is the point at which the Real Estate market isn’t favoring Sellers or Buyers. It’s smack touch in the center and adjusted. This is commonly experienced when there is a supply of 6 months of homes available to be purchased in any Local Real Estate Market.

Buyers’s Market

A Buyers’s Market, as it’s name implies, favors Buyers. A Buyer’s market will indicate active homes available to be purchased regularly over a 6 month supply. Many homes from which Buyer’s can choose from in their home search; a Buyers’s fantasy, obviously. There is by all accounts enough homes for everybody to purchase, simply take your pick!

Since you know now the difference between the sorts of Real Estate markets, I’ll explain, what it takes to guide youthrough buying a home amid a Sellers’s Market. Understanding what’s in store, how to plan and how to win over the Seller can have a significant effect in buying your home. I’ve listed various things below that you can do to help you win the home you’ve recently found and really want.

Remember, that this knowledge you’ll be picking up is part of the research procedure that you ideally began when you initially started to consider homeownership.

What will help you to buy a home?

Be Pre Approved with your financing

Before you even start to set out to buying a home, it’s important that you have your Lender confirm your financial capacity to purchase a home by giving you a Pre Approval letter. A Pre Approval goes past a verbal discussion between the home Buyer and their Lender. For a Pre Approval, they’ll need to check your credit, salary and assets to decide your qualification for financing. They’ll take a long stare at your credit report, your paystubs, your bank statements and your Tax returns (W2’s, 1099 etc) ,just to name a few points here. The verbal discussion is the thing that you’ll likely find in a Pre Approval which will be of no use to a home Seller considering your capabilities to bear to purchase their home.

This Pre Approval  will be as a composed letter from your Lender that spells out your ability to purchase a home; the Seller’s home. This letter will be introduced alongside your Real Estate  Purchase contract (RPA)

Be quick with your offer

When you find a home that meets your needs and wants, don’t lollygag about making the fundamental arrangements to see the home. When you come across a home that you truly like, you can envision yourself in it and by all means you are not the only Buyer who thinks this home would be ideal for them. Tell your Realtor that you need to see the home immediately. If it’s Monday when you see it on the web or your Realtor brings it to your consideration, do not to hold up until Saturday to view the home. ASAP. At the point when Saturday moves around there could without much of a stretch be a few offers on the home as of now, especially if it’s a pleasant home, priced right (which means the Listing Agent knows what they’re doing). The same remains  for when you really went to see a home and you truly love it, yet you simply require a couple days to consider it. This is another formula for passing up a major opportunity for the home you truly adored as there was another Buyer who loved the home you wanted and put in their offer, so now the house is no longer available to be purchased. Shockingly, this is one of the main, hard lessons learned by a Buyer attempting to buy a home in a Seller’s market when they lose the home they truly loved in light of the fact that they were “sleeping” at the worst possible time.

When you snooze, you’ll lose in a Seller’s Market.

Being quick, additionally includes showing that you’ve agreed to terms of the contract that will be finished rapidly and without prolonged delays. For instance, if your Residential Purchase Contract has a standard time of 30 days for a loan commitment, consider slicing that down the middle to 15-20 days, the length of your Lender can guarantee you this is doable. On the other hand if the Inspection time standard is 10 days, consider finishing your Inspection in 5 days. These sped up times that you offer, tells the Seller you’re not kidding. In any case, it’s important that any shortening of time frame  that you offer must be met so you’re not in default of your commitments as a buyer. You would prefer not to be in default as this will and might cause your escrow deposit to potentially being forfeited. I can’t give legitimate guidance as just a Real Estate Attorney can give lawful advice.

Be priced spot on

Price your offer to win! Your Real estate Agent ought to do a watchful review of the home’s nearby market to determine fair value of the home and ideally, the Listing Real estate broker will be talented at determining home selling prices. So your offer can demonstrate that you need & want the home when your offer supports the list price or above. Since well priced homes can trigger various offers in a Seller’s market, it isn’t unusual for a buyers’s offer to be pushed over the Listing price of the home. Fair Market Value must be known and please know, that it’s not about taking a brisk look at Zillow for their Zestimates it much more than that.

Is this an opportunity to low ball an offer on a home that you need?

Not in a Seller’s Market, as you’ll likely be competing with other Buyer’s for the home as I portrayed previously. As you review, in a Seller’s Market the inventory is low, not able to keep up on buyer demand, which equates to the ability to drive the prices higher. In case you’re financing, despite everything you’ll need your Lender to appraise the home’s value and if the appraisal comes in lower than the price tag, you’ll need to backpedal to the Seller to inform with respect to the evaluated value. Obviously, the Seller doesn’t need to acknowledge the appraisal ,an incentive as they may need you to compensate them  for any shortfall from the appraisal estimate and the price tag, be that as it may, Seller’s may also work with you,agreeing to revise the price tag on the home. This may mean the Seller  will reduce to the appraisal price  or they may need you to contribute towards the difference between the appraised value and purchase price.With the  Seller additionally agreeing  to lessen the price to some degree. On the off chance that no assention is made then your escrow company would refund you under the assumption that all terms of the contract were met.

Be Exact And Provoke

Exactness and quickness of your offer is key here. Try not to feel that haphazard will work. Each “i” must be spotted. Each “t” must be crossed. Each blank should be filled in precisely. Ensure all courses of events are viable and in concurrence with different timetables of the agreement. Each required addendum and divulgence must be displayed. Comprehend, that you should cling to all courses of events as well.

At the point when request are made that require your consideration, you’ll need to get appropriate on it and don’t delay. Try not to give the Seller’s any motivation to view you as being “scatterbrained”.

Be Simple On Home Inspection Requests

Indeed, even after you’ve won your home through the offer you exhibited to the home Seller, it’s no time amid the home inspection to all of a sudden turn into a Buyer who says my way or the highway. In no way, shape or form am I saying that you shouldn’t be worried about what the inspections comes about, however it’s not an opportunity to nitpick about each and every detail that may come up, as there dependably is by all accounts a ton of seemingly insignificant details that surface amid a home inspection. It’s best to attempt to cooperate with the Seller to go to a commonly pleasing game plan for any required repairs. Obviously, if there are bigger required repairs, you can simply reevaluate if you buy,if the Sellerr is being  mean and greedy. Comprehend that the Seller couldn’t consent to your repair demands in the event that they knew there had been whatever other intrigued Buyer’s holding up in the wing. To move fast, simply ensure that any repairs/conformities that you ask for don’t impede what you’re willing to acknowledge to possess the home.

Be your enchanting self

This ought to come simple for you right? We can all be enchanting. In all seriousness, in the event that you just recount an anecdote regarding why the Seller’s home would be ideal for you it can likely pull at the Seller’s heartstrings. Inform them regarding you as well as your family, by all methods spill your complete self to the Seller. Tell them why their home would be ideal for you.

Here’s a story, that worked admirably for one of my Seller’s:

A Buyer had seen my Seller’s home and at the showing one of the Kids of the Buyer had forgotten their doll. The Seller let me know and I called the Buyer’s Agent. The Seller had gotten numerous offers on their home and even had one offer that was higher than the Buyer’s whose youngster had forgotten the doll. The Seller’s chose to accept the Buyers’s offer with the doll. They expressed that they loved the way that a young family would purchase their home as they had lived in the home a long time while bringing up their kids. A case of pulling at a Seller’s heartstrings. Does this imply you ought to abandon one of your kids’ toys behind when seeing a home, gee, perhaps, quite possibly.

escrow-640x330Be Prepared To Make A Big Escrow Deposit

This backpedals to being exact and incite above. At the point when the agreement expresses your escrow company ought to be made upon Seller acknowledgment or inside 3 days or whatever the agreement stipulates, ensure you stick to the course of events. It keeps on being about being on your best conduct. Who wouldn’t have the capacity to do that for the new home you need?! You see I noted “significant” as well. An important escrow store likewise indicates you are not kidding about purchasing the Sellers home. A $1000 deposit on a $300,000 home is not significant. Your deposit ought to be more considerable with a minimum, 1%, and I mean at any rate yet more is better! You can without much of a stretch begin with your required up front installment for your particular sort of financing you’re endorsed for or if paying cash, you’ll increment that significantly.

Be Prepared To Begin Making The Most Of Your New Home

You took after the proposals over that empower you to get the Seller to focus on you and your offer to purchase their home. Your offer has been acknowledged; music to any new Buyer’s ears! Congrats!

Make the most of your new home now that you know how to purchase a home in a Seller’s Market.