6/08/2020

What is the Difference between Home Warranty and Home Insurance?

Home insurance types

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible. Another consideration is whether you are purchasing a single family home, or a property such as a condo situated inside a homeowner association which also carries a master common area policy.  Be sure to find out about the coverages available.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.  Some home warranty policy coverages may be quite extensive, so if you are covered through one when you close escrow, be sure to review what's included before calling a repair person, because savings may be considerable if you have coverage. The upfront home waranty fee for a repair call is usually much less than paying a full cost repair man or plumber.  Although not required, often a seller is willing to pay such a home warranty premium for one year, through escrow for the buyer.


Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

6/04/2020

How Do I Find the Right Property?


Today buyers have the ability to constantly look at homes on the internet before ever finding an agent to work with, or really knowing what they want.  In fact, according to surveys of buyers, the vast majority start their home searches online.  There's so much to choose from, so what should buyers do if they are really serious shoppers and know they want to buy? Put in writing what you are looking for.  Write down everything that you think is significant for making a house (or condo) your home.  Maybe your first decision will be:  am I looking for a single family home, or a condominium?  How many bedrooms and baths? Sometimes people say, "I'll know it when I see it", but that approach in my experience has never led a buyer into a home. Buyers should be as clear as possible about their priorities, but also expect a little flexibility about them.

2.  Most people have a location in mind--schools, shopping, ambience, are all things to consider. More than one area should be considered in order to give more options.

3. If you go to see homes at open houses or private showings with your Realtor, have an idea of what to ask questions about in  terms of condition, upgrades, age, etc.  Some things will not be visually obvious or known to the listing agent or your Realtor, they will more likely be a question for the physical inspector if you are in escrow on the property.

4. It's wise to not expect that a property have exactly all the features you would desire--just keep in mind that you can "make it your own" in the future.

5.  Working with an experienced Realtor will help you gain the right knowledge in your home search--online searches will be a good preliminary tool, but an experienced professional will guide you to the local market and buying preparation.

While the experienced past buyer may think some of these things are obvious, the market changes and so do certain aspects of purchasing.  An experienced professional has current knowledge of transaction requirements, as well as the current housing market!

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

6/01/2020

The May Real Estate Market for Long Beach and Nearby Cities

The average price of a single family home in Long Beach continued upward as of today's (June 1) available data--12.6% higher at an average price of $809,637. See how it compares to the previous years in May.  But other things are part of this picture also:  Total closed sales are down 46% from last June--107 for the month; current listings down 25% from last year; sales prices are still on average within less than 1% of the original asking price; inventory, one of the keys to this situation, is consistently low at 2 months, meaning if no new inventory came on the market all property would be gone within two months. Average days on market also decreased from last year.

Lakewood has a similar story:  average home price is up 9% to $657,347; total closed sales  down 39% at 43 sales for the month; current listings are down 42% at 51 listings total; closed prices are with 1.6% of original asking price; inventory is at .9% months, less than one month!  average of 14 days on market. 

Bellflower:  average sales price of SFR up by 4% at $575,000
Cerritos:  average SFR price up to $760,000, an increase of 6% from lst year.
Huntington Beach: average SFR price down 1.7% to $1,072,000 (typical of the million + category).
Cypress:  average SFR price up 18% at $855,000.

So the story of the under one million market is that prices have trended upward, and the pandemic effects are present in showing properties, open houses, amount of inventory, but not in market prices so far.

If you are thinking of selling, it's coming into the ideal time of year to be on the market.
Please contact me or go to www.juliahuntsman.com for a quick online estimate of your home's value.


Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

5/29/2020

Looking for Home Inspiration? Try These Instagram Authors


@inspire_me_home_decor

With 5.3 million followers, it won’t be long before you understand why so many people get hooked on Inspire Me! Home Décor’s Instagram. You’ll find everything from grand and opulent to whimsy and practical, but you’ll certainly never be bored.

@marieflaniganinteriors
Can’t get enough rustic charm? Then be prepared for serious design envy when you follow Marie Flanigan. The Houston designer’s posts are filled with rich woodwork and earthy tones that yield warm spaces.

@myhouseishome
My House Is Home delivers an eclectic mix of contemporary-meets-cozy living spaces all over the world. Characterized by dramatic flair and plush décor, you’re more than likely to come across your dream home here.

@pierre.yovanovitch

Defined by soft lines and contours, French designer Pierre Yovanovitch creates spaces that look as if they’re straight out of an M.C. Escher painting. Materials like wood, stone, marble and metal all come together and result in homes that are minimalist and inviting.

@the_real_houses_of_ig
For a daily dose of downright beautiful living spaces, The Real Houses is a treasure trove showcasing homes, designers and products from around the world. You’ll find endless inspiration along with all the latest trends and styles.

@martynbullard
Celebrity designer and television personality Martyn Lawrence Bullard is known for his eye-popping colors and patterns. His knack for bold design has resulted in A-list clientele, from Elton John to Ellen Pompeo, and you’ll often catch a glimpse into their homes on his Instagram.

@alyssakapitointeriors
NYC-based designer Alyssa Kapito is a master of creating elegant spaces that are both timeless and tranquil. Her aesthetic has a distinctly Upper East Side feel with soft, neutral tones and an exquisite sense of light and space.

Thanks to Paige Brown of RisMedia for this post.


Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

5/15/2020

The April, 2020 Market in Long Beach, Bellflower, Lakewood and Cerritos


In spite of 2020's global health and economic pandemic issues, the Southern California housing market continues to move on. 

As of the end of April, the Long Beach average single family home price increased almost by 9% compared to one year ago.  The Cerritos single family home price increased by over 21%, Bellflower increased over 20%, while Lakewood increased by 4%. 

But what else is happening?  While the price went up, the supply of inventory compared to April 2019 continued downward, as it was already doing for months.  Bellflower's inventory decreased by 50%, Long Beach decreased by 12%,  Lakewood by 37%, and Cerritos decreased by 52%.  Also, houses sold much faster compared to one year ago, the days on market decreased 27%-66% across the four cities.
And, contrary to some buyers' expectations, April selling prices also stayed within 3% of the original list price. 

Not just in April, but actually since 2012, available inventory has been one of the biggest issues for buyers, because a limited supply tends to drive prices upwards.  There are numerous reasons for the limited supply, beyond the purpose of this particular post, which have been discussed elsewhere. 

But it can only be said again, that if you are an interested seller, maybe not even sure at this point because you need to make further decisions, it's still to your advantage to get information now about preparation--it will only help you in the future and perhaps make your path easier.

Please contact me for more assistance.  I have 25 years experience working with both buyers and sellers.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

A Sign of the Times--California Property Pictogram and Showing Rules


a
How to Visit the Property

Are you wondering about what it takes to see property now, if you're a buyer, or marketing your property if you're a seller?

On May 8, the California Department of the Public Health issued its “Industry Guidance: Real Estate Transactions,” which requires agents to post rules on the property – with pictograms -- that must be agreed to as a condition of entry by all people viewing the property. 
  • Wear a protective mask
  • Wash your hands with soap and water, or hand sanitizer
  • Wear gloves
  • Practice social distance, 6 feet apart
  • Do not touch surfaces, including knobs, faucets, countertops, light switches, etc.
  • Discard disposable gloves, asks, or shoe coverings
This or a similar rules form must be posted at the entrance to the property being shown, as well as a form signed by showing agent and the buyer, will keep property showings in compliance with the current health standards. 

It's part of the "new normal" in the industry.  Visitors to the property are required to bring mask, gloves, and engage in social distancing per these rules.  Sellers will need to keep some hand sanitizer handy.  It's really not too much work, and actually keeps things clean!

If you'd like to know more about preparing your property for the current market, or know your home's value, I'm very easy to reach!

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

5/04/2020

Is The Convenience Worth the Cost? IBuyers Have Contracts, Too

iBuyers v. traditional buyer offer


The iBuyers have been a  certain presence on the market for a while.  Often they are bulk buyers or investors looking for profit and will offer to pay cash for your home, sight unseen.  They may be able to close in days, and maybe for some reason a seller would wish to consider such an offer under certain circumstances.  These buyers claim to speed up and simplify the transaction while removing hassle and inconvenience for sellers and buyers.  But despite iBuyers' claims to revolutionize the real estate transaction, some agents are not finding their transactions with iBuyers to be quick or seamless  ("Selling to an Algorithm", REALTOR Magazine, Sept.Oct 2018).  Typically, the inspection is held after the acceptance of the offer.  In one instance, a team of five Opendoor contractors "went through the house with a magnifying glass".  When all was said and done the requested repairs came to about $16,000 on a $300,000 home, this was for replacement of tubs and toilets, retiling of showers, all at the seller's expense.  The sellers relied upon their agent for help, but still made less than if working with a traditional buyer.

The story above is one example, but both the story and the graphic illustrate that their is a price for "convenience".  And would it work if, for example, you have a lien on your property to pay back at close, or heirs to consider for whom you would want to get your highest and best price? 

Realtors are bound by the Code of Ethics set forth by the largest trade organization in the country: the National Association of Realtors, which means they are governed in such matters by their local Board. Realtor contracts and transactional forms are carefully set up and reviewed to comply with all professional standard and state and federal laws.  The investment company or investor buyer may not have any such professional trade affiliation, use their own contracts, and any potential legal recourse must be taken directly to the courts.  It pays to know the features and clauses of the investor company's contract, and a seller would be wise to take the contract to an attorney for review before signing.  If a seller is truly interested in seeing what such companies offer, obtaining multiple offers before signing anything is possible, if only to use for comparison purposes.  Be aware that their motto is true to the concept of buy low, sell high--their goal is to slip the property and make money from it.

There's no harm in checking out an iBuyer offer, but there are also concessions and fees for such a buyer, and perhaps a much lower net at close. The iBuyer company may claim to not charge a commission, but the seller should ask about all other fees and costs, including their terms about any repairs requested before the close of escrow--don't be surprised if the seller is asked to pay, so check the contract before signing.

If you are thinking of selling and you would like to see a further explanation and comparison scenario for your property, please let me know for a no obligation valuation and comparison of estimates.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

4/21/2020

Owning vs. Renting - What Is the Comparison?



House, Owning vs Renting, April 2020
Click to enlarge
It's worth a look to find out what the difference is between renting and owning.
Let's say you're currently paying $2500/month in rent and you're thinking how nice it would be to own instead.  Based on a single family home price of $500,000 (it could be less if you're looking at condos, but remember to include HOA fees), and a down payment of 10% ($50,000), you could come out ahead in the local market after 4 years.  This is assuming a loan at around 3.63%, hazard insurance, home maintenance at .5% ($2500 annually), annual home appreciation of 2.5%, annual rent appreciation of 2.5%, and a gross household income of between $77,000-$165,000 where your tax savings might be about 22%.





Condo, Owning vs Renting, April 2020


The second graphic is for a condo at $400,000, monthly HOA dues of $275, gross household income up to $77,000, and a loan down payment of 5% ($20,000) and home maintenance cost of about .1% annually (that depends on numerous factors not included here).  A condo purchase like this one has an earlier date for breaking even, but notice the differences in equity.


These are samples of course, but based on standard Los Angeles County property tax rate of 1.25% (increases over time), and an HOA dues level which could be higher or lower depending on luxury vs basic HOA, and other factors. It's not guaranteed that the home growth rate will continue at it's present rate.  It's intended to be an example so that a prospective buyer might think about his/her capability to buy.

Many people prefer to rent, but many people have incomes and savings which could allow them to buy and obtain home equity benefits and tax savings.

If you have a sample scenario you want to try, just contact me!

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

4/02/2020

Pandemic: Local Housing Market Trends for March 2020

The single family home market in Long Beach, Lakewood, Huntington Beach and Cerritos, for March 2020 show average home price increases in all cities except Cerritos, which is down 6%. See the panel at the right of this blog for those graphs.

There is no question that the virus pandemic is currently influencing the markets.  Before mid-March, the average daily closed sales in 6 Southern California counties were  higher than at the end of March which shows a downward curve. Los Angeles County, for example, averaged 82 closings a day dropped to 67 average daily closings by the end of March.  The average daily new listings in Los Angeles County dropped from 135 to 98. Similar drops in new listings are in Orange, Riverside, San Bernardino, San Diego and Ventura.  It so far doesn't mean that sales have stopped, or completely will, but the trend is obvious at this point. On average, counties are down about 25% overall in listings.
So what is the hope here? Mortgage interest rates are low, and are set to stay that way for indefinite time this year.  Prior to the mid-March slowdown, California February sales volume was the highest in two years. Small business and unemployment assistance, and direct payments, were a start to fiscal stimulus.  In spite the media attention to what the pandemic will do to our world in the future, look at past events with SARS, MERS and Fukushima, and how the market recovered:


If current measures of social distancing are adhered to, and if the needed medical resources are obtained, the current projection is a decline by June 1.  But will we meet that?  Everything depends on how people follow the rules!!


If you have questions about how to sell your home in the current market, just contact me.  Necessary contract requirements such as physical inspections, appraisals, buyer inspection, etc., can be carried out within guidelines unless there is some stricter local level operating.  Virtual open houses minimize contact to keep to the absolute essential visit to a property.  For more on this, please contact me.  Email, phone, or text.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

3/26/2020

What Is Happening With Buying, Selling and Closing in California??

UPDATE: real estate is now classified as an essential business. Stay tuned for further information about what this means for you.

If the pandemic was happening before the widespread use of the internet, a lot  of our current options would not be available.  So much of our business can be handled without being physically present, that we can get all transaction documents signed, all escrow documents signed, without having to leave our computers.  Listings may be uploaded, viewed and closed virtually.

One could theoretically forego all physical contact and buy the property, and in fact, some buyers have bought this way.  What is changed, however, is, if strictly following California Association of Realtor guidance, is currently there is no in-person showing of properties, no in-person listing appointments, no property inspections, no in-person open houses--but there are virtual open houses.  Well, what if it's a vacant property, and there's no one to be in immediate contact with?  Maybe then?  Best get legal consultation, but be assured, if your property has to go on "hold" status for a while in the MLS because buyers don't want to come over and see it, and right now many do not, and you're not getting any offers (digitally of course), the MLS will not count those days on "hold" status, so when it does go back to "active", that time on hold will not be included.

So, right now, Realtors in California do have to comply with the "Safer at Home" California prohibitions.  California Association of Realtors is currently, however, attempting to get the Governor to make real estate one of the essential businesses.  Because after all, some people are already in escrow, and have to move out and away for the new owners.

But if you are thinking of selling, and have more questions about how to handle a "virtual" situation, I can definitely help.  Yes, the County Recorder Office is closed, however, the title company I most prefer to work with is issuing gap title coverage so that a property can still close, and be covered.  Escrow companies are not receiving in-person visits, but their officers are still in the office working, handling phone calls, and issuing documents.  Are you not computer savvy?  You can still get your docs sent to you for execution and physically sending back, but if you can handle digital signatures (not difficult at all) then all real estate transaction documents on the Realtor's end, and all escrow documents can be handled via computer.  This has been the trend for several years now, in fact.

It's a good time to buy, in Long Beach there's 1.6 months of inventory, that means the available properties to buy are low and you could have competition, but on the other hand interest rates are extremely low!!!! so you save money on the monthly payment. And, it's a good time to sell, because there only 1.6 months of inventory in Long Beach.

So contact me to find out your options right now--the crunch won't last forever.



Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996
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