OC Realty Blog

Source:  Assest Preservation, Inc.  For more information on 1031 Exchange, visit http://apiexchange.com

As the property market cools down, it becomes a good time for buying real estate.  If you don’t have that much money to spend on a house, but you’re absolutely convinced that it’s the right time for you to move (or if you’ve found an intriguing real estate investment property) then you need to learn how to make the offer you want — and get it accepted.

First and foremost, learn what types of properties you’re looking for in terms of both the house and the seller.

The House:

The properties you’re interested in have been on the market more than a month.  There’s not necessarily anything seriously wrong with them, but they’re just not generating much attention.  Maybe they’re unattractive, on a busy street, or in disrepair.  The key is to find properties that maybe need a little repair work, but nothing major.  Your offer isn’t worth much if you have to spend all the money you saved on structural or wiring work.

The Seller:

When selling real estate, the seller you’re looking for needs to move ASAP.  Perhaps they’re relocating to a job in another city, or they’ve already bought another house but want to sell the old one before leaving town.  Maybe they’re selling the home of a recently-deceased relative, and they just want to get the whole thing over with.  Maybe they’ve defaulted on their mortgage payments and the house is foreclosing.  These are motivated sellers and they’re more willing to accept a low offer on their property.

The Secrets:

• Get pre-approved for a mortgage before you start shopping.  It’ll make you more attractive to sellers.  Also shop for the best mortgage loan rates. 
• Shop at the right time — one of the best times to look is during the week between Thanksgiving and New Year’s, simply because very few people are looking then.  If you find the right house or the right seller at this time, it’s a great opportunity for getting a low offer accepted.
• Make an initial offer that’s below what you want to pay, and prepare to be rejected.  Let the seller feel that they’re negotiating a better deal with you and they’re more likely to accept your second or third offer.  (Note: in a competitive market this strategy isn’t advisable, but in a slow market it’s worth trying.)
• Make offers on several properties.  The more opportunities you create, the more likely you are to have a seller accept your offer.
• Hire a buyer’s agent.  The seller’s agent is trying to get the best possible deal for their client and they’re not going to help you get a low offer accepted.  A dedicated buyer’s agent will, and they’ll most likely have more in-depth knowledge of the neighborhood and current market prices, too.
• Don’t use the list price as an indication of a property’s true market value.  List prices are often inflated, so do your own research.  Have your Buyer’s Agent get a Current Market Analysis for the area and find out how accurate that list price really is.
• Give the seller a good reason to accept your price.  Offer to close quickly, offer to pay in cash, and be flexible on inspection dates.  Accommodate the seller in every way possible, and if they’re motivated to sell they’ll be more amenable to your offer.

If you’re interested in purchasing Orange County Real Estate, call or email me so I can help you structure the best offer for your next home!

Orange County Home Prices & Sales (source DataQuick):

For the 22 business days ending April 25, sales for all types of Orange County home sales decreased 26.5 percent. The median sales price decreased 0.6 percent for all types of housing, however, Resale Homes were up 2.1%.  The median is where half the homes sold for more and half for less.  Types of homes selling, as well as home value changes, cause the median to change.

Although sales were down, prices still remain constant.  The featured city this week:

Laguna Beach Real Estate (Zip 92651)

• Median Sales Price = $1.546,250  (down 33.5%)
• Number of Homes Sold = 36  (up 5.9%)

For a complete city list of Orange County Real Estate , click on the below link.

http://www.ocregister.com/ocregister/money/housing/article_1691591.php

Deciding how much house you can afford is a personal decision.Many factors come into play.How much can I borrow?  How much can I put toward my down payment?  What size monthly payment can I afford? 

There are no black and white answers to these questions.  Its a matter of give and take.  If you plan on a 30 year mortgage, you can probably make a lower down payment (or perhaps no down payment at all) and still manage the monthly payments.  If, on the other hand, you plan on a 15 year mortgage, youll probably want to make a larger down payment to keep your monthly payments in line with what you can afford. 

How large a down payment can I make?

Many buyers look at their cash on hand as their only source for their down payment.  This simply is not the case.  One way to fund or partially fund a down payment is by using a gift.   Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home. 

There are also down payment assistance charities that can help you.  And, of course, if you are selling a home, the equity youve built up can be applied to your down payment.

But these are not your only options.  We can help you explore all your down payment options, including low down payment and 100% mortgage financing options that might be right for you. 

What size monthly payment can I afford?

When determining what size monthly payment you can afford, youll want to consider what other monthly expenses you have.   Tangible expenses such as car payments, day care and utility bills, all play a role in how large a monthly payment you can afford. 

There are also the intangible expenses or lifestyle expenses that youll want to consider.  Things such as dining out, travel and when you buy your next car can effect how much you can afford.  Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment? 

How much can I borrow?

This is a question you’ll want to get answered before you begin your home search.   This is something that I can help you with.  Here is my loan broker’s http://www.ocloanteam.com/MortgageCalculators to help you see how your down payment, monthly payment and the amount you borrow are all interrelated. 

I can answer any questions you may have about the mortgage process.  But the best way I can help is by getting you pre-qualified for a mortgage loan.  To get started, simply complete call or email me.  I look forward to helping you buy your dream home.

The question as to when to sell an investment property depends on many factors, including: the likelihood of future appreciation, the cash flow it produces, the ease or difficulty of managing the property, and the property’s fit in an investor’s overall investment portfolio.

When selling real estate, many sellers want to know how long their home will take to sell.

If you’re interested in getting an estimate on how much time to plan for your next South Orange County real estate move, please call or email me. I would be happy to provide you with an updated market evaluation for your home and discuss a timeline that will work for you, so you can accomplish your moving goals.

Orange County Home Prices & Sales (source DataQuick):

For the 22 business days ending April 18, sales for all types of Orange County home sales decreased 23.9 percent. The median sales price remained unchanged for all types of housing, however, Resale Homes were up 2.6%.  The median is where half the homes sold for more and half for less.  Types of homes selling, as well as home value changes, cause the median to change.

Although sales were down, prices still remain constant.  The featured city this week:

Corona Del Mar Real Estate (Zip 92625)

• Median Sales Price = $1.606,250  (up 8.2%)
• Number of Homes Sold = 24  (down 17.2%)

For a complete city list of Orange County Real Estate , click on the below link.

http://www.ocregister.com/ocregister/money/housing/article_1680803.php

Homeowner’s Exemption - Have You Applied?

I was just advising a client who was buying Orange County real estate to watch out for the California Homeowners’ Exemption form in the mail.  This is sometimes overlooked and not filed with the County Assessor’s Office, which will result in paying more property taxes than you need to!  I don’t know about you, but I don’t like paying more taxes than I have to!!!

What is Homeowners’s Exemption?  It reduces your assessed “taxable value” by $7,000.  This will save you real $$$ off your property taxes annually!  You may qualify if:

• You own the property
• The property is your primary residence
• You don’t alrready have a Homeowners’ Exemption
• You submit a completed application

If you aren’t sure if you’ve filed your exemption already, just call or email me (provide name and address on title and a contact number).  I’d be happy to check on your status for you.

To find out more information about Homeowner’s Exemption, visit the Orange County California Assessor’s Office website at http://www.ocgov.com/assessor/exemption2.asp

(Part 5 of a 5-Part Series): 

This is the tough part.  Where do you begin if your current home is packed full of years of accumulation?  How do I decide what stays and what goes?  Here’s a simple checklist to help you in this process……and remember, it’s never too early to begin planning. Start by space planning to determine what will fit in the new home, whether it’s Senior Housing or Residential Housing.  Sorting through your belongings:

•  Start in rooms that will be easier (ie: not being used). 
•  Take it a room at a time = less overwhelmed. 
•  Start with larger items to decide how much space you need. 
•  Save the family photos & treasures for last. 
•  Call a family meeting to distribute personal belongings and share your memories about each item before giving it away. 
•  Determine what to keep, what goes to family & friends, what to donate, what to trash and what to sell (it’s OK to re-gift). 
•  When in doubt, throw it out.  If you can’t bear to lose the memory of an item, take a picture of it before you let it go. 
•  Keep a list and mark all items. 

What does go, arrange for an auction (including E-Bay), Garage Sale or Estate Sale.  

Have a moving party and share the favorite memories of your home. 

Pass on the history of your home to the new owner to keep the memories alive.