Irvine OC Real Estate Blog

No matter what the economy some of the same reasons apply to buy that exist any time. Right or wrong many people count on thier homes for a long term asset that can be leveraged for retirement or future financial needs. Here are some of those reason. 

Reasons Why You Should Stop Renting
1. Rents continue to rise
2. Having no economic security, not knowing how much your rent may go up in the next two to three years.
3. No tax benefits
4. No long term wealth accumulation

I have broken the homebuying process down to four steps.

• Step One: Determine how much home you can afford. Speaking to a mortgage loan specialist to be pre-qualifed for your home loan is the most important ste! The price range of the homes you look at will depend on this.

You can be assured you are in good hands with my years of experience and knowledge as a real estate professional. Vist my web site  for more articles and advice to help you along your home purchasing adventure!

Fall and Winter  is the Time to BUY!!

As the holidays draw near (or to a close) and the cold sets in we tend to become more dormant, much like the real estate market in many regions of the country, making it a great time to get out and buy before conditions likely thaw out by spring. There is still time to get a great deal!

The real estate market typically softens this time of the year. Kids are settled into the school year, the holidays are here, and many put off  buying a home until spring, or at least until the new year.

But the savvy home buyer will take advantage of the current conditions, which, coupled with historically low  interest rates , make it an excellent time to buy.

Homes will typically sit on the market a little longer in the winter which often presents buyers with a good opportunity to negotiate their best deal.

If you have been thinking about buying next year, or plan on buying in the near future, you may want to reconsider your plans to time the market  It could end up saving you a considerable amount of money.

Not only will you risk the probability that prices will rise, but who knows what interest rates will be like next year. Today’s low rates are  incentive enough to think about buying now.  

The chill of winter is setting in (well maybe not so much here in California!) and as the holiday season draws to a close (Happy New Year!) ,  sellers have been realizing they must be more competitive in the marketplace to affect a sale, “Many listings are now beginning to show reductions in price, and sellers are becoming more aware of how they need to  set their homes apart from all the others on the market.”

So if you do start looking in the weeks ahead, be sure to keep an open mind. Always think about the future potential. You can always change the carpet that would clash with your furnishings, paint the walls, replace outdated appliances, or add the back yard patio area that is missing. Remember, if the sellers are anxious to sell or the house has been on the market a considerable length of time, you’ll likely have the advantage in the negotiation process.

Finally, if you do manage to buy and close escrow by the end of the year (too late if you aren’t in escrow already!) you’ll have the added benefit of being able to deduct your closing costs, mortgage interest, and property taxes on your 2012 tax return!

If you’re pconsidering purchasing a home in the coming year, then you’ll want to keep an especially close eye on your holiday spending -as not to hamper your chances of getting a loan You will want to refrain from opening any credit accounts for major appliance or electronic purchases , avoid  running your existing credit cards to their limits, resist overspending by using your credit to finance your holiday gift spending  or dipping  into the money you’ve set aside for a down payment on your new home.

Why? When you apply for a mortgage, the lender will request a credit score with the credit report. A credit score is a computer-generated number that indicates your ability and willingness to repay a debt based on your credit record. This is an important factor the lender used to determine whether you will be approved for a loan and to determine the mortgage interest rate.

Your credit history is very important in obtaining a loan If you show a pattern of managing your credit wisely, keeping credit card balances low and paying your bills on time consistently, your credit score will be positively affected.

Remember, besides the initial down payment you plan to put down on your home purchase, you’ll also need to have some cash available for closing costs, which will usually run between 2 and 7 percent of the property’s value. Closing costs cover taxes, recording fees, inspections, prepaid loan interest, title insurance, financing costs, and points – the dollar amount paid to a lender for obtaining a lower interest rate on a loan.

In addition to the down payment and the closing costs, you’ll need to have some cash to move, for homeowners insurance, property taxes, maintenance and repairs. And don’t forget furnishings and other household items once you move in.

So, with that in mind, the best thing to do as you tackle your holiday shopping is to plan ahead and do your homework.

• Develop a budget. Determine who you’re buying for and how much you plan on spending.
• Look for other ways to pay for holiday gifts. Can you put in some overtime to earn extra money? Do you have time to work an extra job during the holidays? Can you adjust your household budget – perhaps exclude your monthly or weekly dinner and movie out?
• Try to avoid shopping at the last minute. The stress will lead you to buy whatever’s easiest, not most economical.
• Look for deals and sales. Scour the weekly ads. Look for deals and coupons on the Internet.
• Keep track of how much you spend. Once your shopping is done, don’t spend any more on the holidays.
• Pay off any debt in full in January. Try to limit credit card use during the holidays, but pay it off once you receive your first-of-the-year statement.

Small sacrifices when your consider the reward to spending next Christmas in your new home!

Could Inflation affect mortgage rates soon? Most people do not think about inflation but it is already here. Just consider how much prices have gone up in the last year. You will see an increase in almost everything you buy!

 Contrary to what the Fed has said about it moderating, year-over-year inflation is on the rise. Producer Price Index (PPI) rose by 0.8% in the month of September, elevating year-over-year wholesale prices by  6.9%. Meanwhile, the Consumer Price Index (CPI) for September rose by 0.3%, and while this was inline with estimates it pushed the year-over-year number to 3.9%. This is significant because the year-over-year figure was just 1.6% in January.

Remember, inflation is the arch enemy of Bonds and home loan rates. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

It’s still important to remember that now remains a great time to purchase  a home, as home loan rates  are still near historic lows. .

If you need help in purchasing or selling a home in Orange County Ca just Contact Mary or text /call 949-275-6544

 Pricing  your  home  is  an  art  — not a science.

 Achieving the optimal price  is  the result of both objective research into similar properties and  instinct in  determining how much a buyer will be willing to pay for  your  home.  The  right  price  will  attract  showings,  which  will generate offers.

The  unfortunate  fact  is  that  price is  the  number  one  factor that most  homebuyers use to determine which homes they want to view. It’s also important to remember that although you and your Realtor set the asking price, the selling price is determined by the buyer.

The Correct Price Will:

•  Expose the property to more buyers
• Result in a quicker sale, with less inconvenience to the seller
• Increase Realtor response
•  Generate more ad calls
•  Prevent your listing from getting “stale” or “shop worn”

 Typically  homes  that sell more quickly, sell closer to or sometimes over asking price.

 Some Common Reasons for Overpricing

• Over-improved property
•  Original purchase price too high
• Desire for “negotiating room”

 Overpricing Pitfalls

•  Most  of  the  activity on  your  home will occur in the first few weeks.
• Pricing ahome properly creates immediate urgency in the minds of buyers and agents.
•  There  is  a  pool  of  buyers  who  have  seen  most  available homes  in  theirprice  range and are now only waiting for new listings  or  price  reductions.  Abuyer  that has been waiting, may fail to see your home if it is priced too high.
• Sometimes, a price  reduction  may  be too late, as interest by both buyers and Realtors, may have waned.

 Buyers and  their  agents are very aware of the length of time on  the  market, the most  common  question  continues to be: “How  long  has  it  been  on  the  market?”  Often buyers are reluctant  to  make  an  offer  on  a home that has beenon the market  for  “awhile”  thinking  that there is something wrong with the home.Unfortunately,  overpriced  listings  frequently help you to sell your  neighbor’ reasonably  priced  home,  making  it appear that their home is priced very well.

 The Role of a Real estate Agent in Pricing

 Provide  you  with  a  comparative  market  analysis,  which  is a comparison  of recent  homes  with  similar  amenities  that  are available, in escrow and sold. There  is  no  “exact price”; your home is worth what a buyer is willing to pay. The  market  determines  value;  together  you  and  your agent determine asking price.

  Realtors  have no control over the market, only the marketing plan. The  seller  determines  the  asking  price.   Never  select  an  agent based on price. 

If you’re serious about selling and not just listing your property, call me today. I will give you an honest evaluation of what it is going to take to get your property sold.

Mary’s October Real Estate Update!

FEATURES

•  Buyer protection in “as is’ real estate transaction
• 3 Money lessons from US credit downgrade

ARTICLES AND ADVICE

• Don’t fixate on mortgage rates
• Score doesn’t guarantee better rate
• Seller’s musts when fixing home defects
• Five brights spots in the real estate recession

 I hope you will find this information useful!

 A few recent articles you might find interesting!

 The Mercury News

Bipolar housing market: The haves and the have-nots
Think of this housing market as bipolar.  In the luxury sector, the recession is a memory and sales and prices are rising.  But everywhere else, the market is moving sideways or getting worse.

Read the full story 

  Bloomberg

Home prices up in July in 17 cities
Home prices rose in 17 U.S. cities in July, according to the Case-Shiller Home Price Index, a closely watched measure of the health of the nation’s housing market.  Nationally, prices were up 0.9 percent from the previous month, exceeding analysts’ expectations.

Read the full story

  The Los Angeles Times

Troubled homeowners beware of “mass joinder” lawsuit invitations
Financially strapped homeowners should beware of unsolicited mailings inviting them to participate in a “mass joinder” lawsuit that promises to force lenders to modify their loans.

Read the full story

Here is the latest edition on my Monthly Newsletter! I have included a few of the topics below.

Mary’s July Real Estate Update!

FEATURES

• Align home purchase with your life, not the market
• Get a mortgage after foreclosure bankruptcy
• Buyer strategies for negotiating home improvements
• Forecast: Real estate recovery won’t arrive till 2013 or beyond 

ARTICLES AND ADVICE

• Inspection musts for long-distance real estate purchase
• Six tips for a higher credit score
• A seller’s game plan for hearing offers
• Case-Shiller: 13 of 20 metros see monthly gains

 I hope you will find this information useful!

Here are a few reasons to: Never Sell an Empty House!

People don’t buy houses-they buy homes: Buyers often are drawn to a warm feeling of home that furniture and accessories provide.

With no furniture there is no sense of size or purpose: Empty rooms are not inviting and hard to determine what size furniture will work within them. Also some rooms are difficult to know what the intended purpose for the room is. It can be a dining room or family room or den, etc? Only 10% of buyers can visualize the potential of a room.. If it is designated it at least gives the buyer the initial use and often will spur ideas of possibilities.

When rooms are empty buyers focus on negative: It is much easier to notice a not so perfect paint job or crack in the wall when the room is empty. There is simply nothing else to focus on!

Two mortgage payments are expensive! A vacant home typically takes twice as long to sell and usually sells for less! Don’t take this chance is staging a home is within your reach.

If you are planning on selling your home and would like a personal evaluation please give me a call at 949-275-6544 or email to schedule an appointment. Selling a home is stressful, but putting your best home forward can help alleviate some of the anxiety.

Please use the link provided to visit my September Housing Trends eNewsletter. This eNewsletter is specially designed with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click on this link to view the Housing Trends SEPTEMBER – 2010 Newsletter http://mburke.housingtrendsenewsletter.com

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus community reports that map shopping, schools, recreation and more.