What should buyers be considering BEFORE they buy? Looking on the internet gets people into the initial stage of exposure, before they even call a REALTOR. Most people think the property viewing stage is fun, both on the internet and in person, and it should be enjoyable. But what about the advance homework? Internet photos and marketing can get you hooked, but it can also be a nervous, even fearful time, coming to the decision to submit an offer when you're new to the process. Even if you're a repeat buyer, buyer's remorse or indecision will have far less impact if you think over some things in advance, and consider now what your fears may be (it's not unusual to have a few).
Sticker Shock: Renting might be cheaper than owning -- do you have a mortgage pre-approval with estimated costs before you go out and look?
Home Maintenance: Are you prepared to spend time on painting, fixing leaks (or hiring someone), mowing a lawn, saving up for a new roof? Do you know how much it will cost to heat that pool every month--or just keep it clean? And then there's annual insurance premiums. Just some of the things to think about.
Have you checked out all utility bill costs for a house vs. your one-bedroom apartment? It would be a smart thing to do now.
1/23/2013
Being a Buyer In An All-Cash Competition
I hear from buyers who put in offer after offer, but don't get the house because of losing out to the all-cash buyer or mostly cash buyer.
What does such a buyer need to do? First of all, be prepared to be persistent, and persevere. Next, be totally pre-approved with a good lender. Know the difference between the average "pre-qualification" letter and a good pre-approval letter from a reputable lender with a local track record and who can close on time, and not surprise you with last-minute underwriting issues that could have been avoided up front. A good REALTOR can be of tremendous assistance here by pointing you in the right direction, not only with all buyer preparation for an offer, but with the local market. See how quickly you can close, and be willing to negotiate with the seller on some extra days to accommodate their moving date. Be prepared to provide all necessary documentation at the time you submit your offer, sellers want to know they can close the deal with motivated and qualified buyers, not get stuck putting the house back on the market again.
Keep in mind that cash buyers may not offer a seller the most attractive offer, and that a good price from a well-qualified buyer who is getting a loan may stand a very good chance with a motivated seller. Keep your offer terms clear and simple, and bear in mind that trying to change your contract terms after acceptance by the seller could cause them to cancel and go with one of their backup offers.
Let the seller know you are very interested in their property as your next home (presumably you are), and tell them that when you make an offer.
Last, but not least, review the 10 items to the right to remind you about being a successful buyer! I'm experienced with both 1st time and repeat buyers and can help you position yourself towards success for your next purchase, contact me at 562-896-2609.
1/17/2013
People Still Want to Own Their Own Home
The majority of adults still think buying a home is the best long-term investment, and see homeownership as an important long-term financial goal. The majority of renters want to own in the future, and over half of first-time homebuyers bought because they were tired of renting. Over 90 percent of adults surveyed were happy with their decision to buy!
Are you ready to prepare for buying? Contact me, a Long Beach Realtor with 18 years' experience.
1/12/2013
California's Housing Market Projected to Rise in 2013
The good news is that prices are rising in California and the share of underwater mortgages is dropping, but the fact is that 29% of California mortgages are still "underwater" and 15% of them are still more than 125% loan-to-value.
Housing affordability is at records highs with California still over the 50% mark, meaning more than half of California households can afford to buy. Mortgage lending is very tight and "defensive", and appraisals are problematic (example: Many 20% down borrowers are finding their new property doesn't appraise as high as what they agreed to pay for it, but if they can put down another 10% of the purchase price, the lower loan-to-value erases the appraisal issue), and listing inventory is down by more than half compared to one year ago, so opportunity is scarcer. In fact, in Los Angeles County, we have an average of 2 months of inventory--down from 8 months 2 years ago. For December, Long Beach had 1.9 months of inventory.
Why is this? One reason is that many sellers are stuck where they are due to underwater value, or they are skeptical of moving on, and also because large amounts of foreclosed inventory is being bought up by investors in bulk and rented out. Distressed sales volume is decreasing gradually, and in California statewide, equity sales are now about 64% of the market. But expect short sales to stick around, they have been about 23-24% of the market since 2011.
There is a pent-up housing demand, and job creation is one thing that can loosen up the housing market--the prediction is that new housing construction will begin again in California with the improvement in jobs.
Each city and each area has it's own local real estate market, but tight inventory, short sales, and loan issues are very much a universal picture in the local, state and national areas. Overall, the California market is predicted to increase in 2013.
And, another important fact: According to a REALTOR survey, buyers are more optimistic than ever before about buying, in spite of all these other factors -- because housing affordability still makes this a great time to buy (something seller need to think about also). Thanks to Leslie Appleton-Young, California Association of Realtors, and her report of January 11,2013.
For an agent very familiar with the Long Beach/Lakewood/Cerritos areas, please contact me at julia@juliahuntsman.com, or my phone!
Housing affordability is at records highs with California still over the 50% mark, meaning more than half of California households can afford to buy. Mortgage lending is very tight and "defensive", and appraisals are problematic (example: Many 20% down borrowers are finding their new property doesn't appraise as high as what they agreed to pay for it, but if they can put down another 10% of the purchase price, the lower loan-to-value erases the appraisal issue), and listing inventory is down by more than half compared to one year ago, so opportunity is scarcer. In fact, in Los Angeles County, we have an average of 2 months of inventory--down from 8 months 2 years ago. For December, Long Beach had 1.9 months of inventory.
Why is this? One reason is that many sellers are stuck where they are due to underwater value, or they are skeptical of moving on, and also because large amounts of foreclosed inventory is being bought up by investors in bulk and rented out. Distressed sales volume is decreasing gradually, and in California statewide, equity sales are now about 64% of the market. But expect short sales to stick around, they have been about 23-24% of the market since 2011.
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| 2013 California Market Recovery |
Each city and each area has it's own local real estate market, but tight inventory, short sales, and loan issues are very much a universal picture in the local, state and national areas. Overall, the California market is predicted to increase in 2013.
And, another important fact: According to a REALTOR survey, buyers are more optimistic than ever before about buying, in spite of all these other factors -- because housing affordability still makes this a great time to buy (something seller need to think about also). Thanks to Leslie Appleton-Young, California Association of Realtors, and her report of January 11,2013.
For an agent very familiar with the Long Beach/Lakewood/Cerritos areas, please contact me at julia@juliahuntsman.com, or my phone!
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