Tips on House Hunting

Are you buying a home? Here are some tips to help you find your dream home.

1. Location, location, location!- Location is crucial. How far are you willing to commute to your place of work? How great are the local schools, shopping centers and other public amenities? Will your new home be next to commercial property or an empty lot? A dream home can be a mistake if it’s in unattractive location, and a poor location home can be a bad choice if you foresee reselling the home within a few years.

2. Make a list- Do you (and spouse, if married) really know what you need and want? You’ll save yourself hours of shopping if you make a list ahead of time. Zero in on the features you have to have, would like to have, absolutely don’t want and would rather not have. Your goal would be to find the right home for you or your family without falling in love with one that doesn’t fit your needs.

3. Homework- In the past, consumers had little access to information about recent home sales prices, homes on the market, sale prices, neighborhoods, and the home buying process. Today, this information and much more is available on the web.

4. Pre-approved for a mortgage?- Rather than guessing or estimating how much you have enough money to spend, ask a lender or mortgage broker to give you a full evaluation and a letter stating how much you’re qualified to borrow. The correct amount may be a lot more or much less than you think.

5. Checklist- Touring several homes is  a puzzling experience for most people. Rather just relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home shopping checklist and keep track of the features of each home.

6.  Make an offer- House hunting can be exhausting , especially if you truly know you are not emotionally or financially ready to buy a home. If you’re not ready, don’t do it or don’t be pressured by others. If you are really ready, go through a blank purchase contract so you’ll know what decisions you need to make when you put your offer on the table.

7. Relax- Home buying is major life altering event. But it’s not worth making yourself crazy or stressed. Save time at the end of you house hunting journey to wind down, composed your thoughts and emotions and keep the experience in perspective.

Realtors detail their layoff protection plan

The California Association of Realtors joined a number of companies seeking to assist customers who lost their jobs.

The CAR “Mortgage Protection Program” offers up to $1500 a month to first time homebuyers, who lose their jobs, provided they bought a California home from a California Realtor by December 31. The plan would assist homeowners up to 6 months.

The plan seeks to alleviate home shoppers from uncertainties about not being able to commit to a mortgage payment now because their job might be unstable. The association’s Housing Affordability Fund is providing $1 milliion for the program, this will benefit up to $3000 families.

To qualify
- Not have owned a home for the 3 yrs or more
- Open escrow today or in the future but close by December 31
- Use a member of the state Realtor association in the transaction
- Buy a home in California

Self-employed homebuyers and buyers over 70 are disqualified.

Other programs are available depending where you are located. The “Rest Assured Mortage Protection Program” provides up to $2500 per month to laid off homeowners for 6 months. Another program that is also available is the “Peace of Mind Program”.

Unexpectedly surge in housing

Construction of U.S. homes unexpectedly increase in February, after falling for about 8 months, according to a government report. Also the Commerce Department has said, housing rose to a seasonally adjusted annual rate of 583,000 in February, up 22% from a revised 477,000 in January. In other words thing can be changing in the housing market.

New construction of single family homes, are considered the core of the housing market and has increased 1.1% to an annual rate of 357,000 vs. 353,ooo  in January. In the other hand, February also increase was driven by an 80% increase in multi-family construction homes.

New construction of buildings with 5 and plus units increase 80% to 212, 000 from 118,000 in January. Applications for building permits are being considered a reliable sign of future construction activity. Economists were predicting huilding permits to have fallen in numbers.

In that note, you can start to see a little increase in the housing market and the building industry.

Fannie, Freddy may tap the U.S. Treasury for $51 billion

Freddy Mac and Fannie Mae could ask the government for $51 billiion in the next coming weeks, so they can continue to function as the largest providers of the funding for U.S. residential mortgages.

Rising deliquencies and falling securities values that led to the government’s seizure of the companies in September increase in the last quarter, requiring Fannie and Freddy to look for more of the stop-gap measure organized by the U.S. Treasury and their regulator. Analysts predicted additional capital needs from Treasury through 2009.

Losses in the latest quarter will probably be the hardest on Freddie Mac, which hold a larger portfolio of unsafe mortgage securities, including subprime bonds. The McLean, Virginia-based company is seeking $30  to $35 billion in capital from the Treasury in the form of senior preferred stock.

Washington-based Fannie Mae said that the Federal Housing Finance Agency, the regulator, may request $11  to $16 billion, based on estimates from the fourth-quarter results.

Signs of larger losses give emphasis to the importance of the Obama administration’s measure to bring to an end to foreslosures that are coming to a downward spiral in the housing market.

Manhattan Beach, Ca.- Buyers off the fence

With mortgage interest rates decreasing and the price of homes a good 30% below their peak in Southern California. Buyers are beginning to return to the housing market. Home shoppers being competitive, the cheapest foreclosures and agents say business is picking up.

Is the crisis over?

Any market recovery will be long and bumpy. There will be periods in which home prices flatten or even rise for a month or two and then fall again.

Many point to the last time the housing burst in the early 1990s, when real estate lost 20% of its value in the first three years but then continued to drop for four more years before beginning to rise.

In July, the number of homes sold in Southern California was up from the same month a year ago, the first increase in three years. The recent activity is a one-time high driven by prices on foreclosed houses. The increase of foreclosuress, for example, has created an opportunity for speculators and others rush in to buy homes that are cheap.

Prices remain high when compared with people’s incomes. Even though home prices have come down, people can’t afford to buy them. Mortgage products that made it possible to buy expensive houses in the past are no longer available. Low interest rates can make pricey properties more affordable, but it’s worthless if you can’t get a loan, and most lenders have tightened their requirements.

In July, there were many houses on the market in California that it would take 6 months to sell them all. It’s better than a year ago, when there was a 10 month supply. With inventories high, prices will have to decrease for those houses to sell.

The mortgage mess is increasing from people with bad credit records who took out subprime loans to people with good credit. These borrowers are unable to pay their mortgages, because of increasing inerest rates on their adjustable-rate loans, lower home values, and job losses.

Loose mortgage lending standards did inflate the housing market, and the range of damage as borrowers default on those loans is still unknown.

Subprime mortgages given to unqualified buyers, a large number of mortgages were given out in 2006 and 2007 to borrowers who did not document their incomes, or agreed to a low, temporary interest rate that would reset to a higher rate and monthly payment.

Real Estate Misconceptions

Myth: Are all realtors equal?
Fact: Real Estate agents differ in experience, skills, ingenuity, accessibility and ability to produce results quickly & smoothly. Interview at least 3 agents, & be prepared with a list of questions you plan to ask. What is their track record? How do they market? Do they have a team to help sellyour home or is he/she responsible for everything? Finding a agent prepared to work hard & who will be accessible to answer your questions.

Myth: Should home inspections wait until an offer is present?
Fact: Before listing a home, sellers should hire professionals to inspect the property including the roof & other structural elements. Termites & other important buyer considerations & should be inspected. Make all reparis before you list the house on the market. A list of the inspections & repairs should be available to serious buyers.

Myth: Who needs a real estate agent?
Fact: Purchasing a home could be the most important & difficult financial transaction you engage in. Buyer’s agent can save your time, hassle & thousands of dollars. Take time when selecting a real estate buyer’s agent- find someone you can trust.

Myth: Buyers should wait to lock loan approval until they’ve found a home they want to purchase.
Fact: Buyers want to find the “perfect” home before having their credit pulled. It’s smart to get pre-approved for a loan even before you visit your first home. Your credit report may contain wrong information that you were not aware of. Or, you might not like what loan program you qualify for, or higher loan value than you thought. You should get a pre-approval letter with your offer.

Myth: Do all real estate agents charge the same commission percentage?
Fact: Not all agents and agent packages are equal. Full service agents to discount agencies, make sure you know the type of professional you are hiring and what EXACTLY they are going to do to sell your home. An agent that can professionally market your home above & beyond the MLS listing will increase your exposure within the marketplace, which will lead to a higher selling price & less days on the market. Will your agent incur costs to give your home the visibility? Find out, so that you may take everything into consideration when establishing the commission percent. Despite what an agent might say otherwise, commissions are always 100% negotiable.

The Hottest Home Trends in the South Bay

The hottest new home trends expected for 2009.

Less Square Footage:  Buyers are looking at their lifestyles & the significant aspects of their new homes. The result is a smaller home with bigger square footage. A smaller home does not indicate sacrificing on comfort. These homes still have expected luxury features – granite countertops, top-of-line appliance, & lavish owner’s baths.

Room to Store: As the years have changed, homeowners have wanted more storage space. Then new style is for bigger, walk-in closets with built-in storage systems & packing islands. The plan is to stay away from wasted space & maximize the square footage of the home. Built-in niches & attic storage rooms provide a purpose for unusable space.

Outdoor Living: There has been an increase in the attractiveness of outdoor living space. Many homeowners are requesting screened porches so they can enjoy the outdoors. Others requested open patio areas that feature fireplaces & built-in kitchens.

Universal Design: Today’s homes (and tomorrow’s) are easy to move around in, even with or with out physical limitations you or your family members might have. Bigger hallways & doors, fewer stairs seem to be normal. Architects frequently use the phrase “universal design” to portray homes with features like these.

Designing for Women: It’s no secret that women are the powerful force behind most home buying decisions. It’s a reason that homes are planned around features that are significant to the fairer sex. Larger laundry rooms, lavish spa like owners bath with attractive tubs and state of the art security systems are features significant to women.

Green & Heathly Homes: The green movement is not a trend, it’s becoming more of the “norm”. Buyers are looking for better ways to make their homes more effcient and with lower utility costs. Buyers are ready to go a step further. The use of paints with low levels of volatile organic compounds (VOC’s), carpets that give off no or lower gas levels & recycled materials that help make a healthier home. Better insulated homes not just saves energy, but keeps unsafe allergens out of the home.

Smarter Homes:  Today’s home wiring includes additional than standard electrical connections. Dedicated wiring for data, telephone, audio and video are the normal options. In-wall speakers, intercom systems, wireless network & options to control lighting & temperature are requeseted options in today’s homes. You can even install security cameras to keep an eye on the kids when you are away (Nanny cams) or see who is at the door.

The Kitchen Brings in the Heat:  It is one of the most important areas in the home & luxury buyers continue to look for bigger space & storage, restaurant-quality appliances & high-end finishes. Utilitarian extras like recycling organizers, specialized storage options & walk-in pantries are necessities. Kitchens islands are still a trend.