Southern California Real Estate Is Going To Be Hot!

It’s an early start to the fire season. The fires that started a couple of days ago near Camarillo, California remind us that we need to be prepared for the upcoming hot months. With the dry weather and lack of rainfall this year we are definitely prone to more fires.

Every year, I get a postcard from the LA County Fire Department reminding me of the annual brush clearance deadline. This means any vegetation, brush, tree or shrubbery that is not properly kept will need to be trimmed. The physical residence needs to be clear of anything that may be considered a “contributing factor”. The point is, as residents, we need to “fire-proof” our homes as best we can.

When it gets to this time, here are some tips I follow:

1. Cut and remove all vegetation (grass included) to the ground.
2. “Lollipop” all trees, bushes and shrubs.
3.  Clear rain gutters of debris.
4.  Clear perimeter of any dead vegetation.
5.  Buy first aid kit (I do this every year).
6. Create a “survival” package.

This is a nutshell version of what I do to prepare for the fire season. As a worse-case scenario precaution, the first aid and survival kits are included in case I were to separate indefinitely from my home. Let’s hope that the Southern California housing market stays hot on a figurative basis and not on a literal one. 

The Marriage between Real Estate and Technology

It’s hard to imagine a world without the convenience of technology. Where would we be without our ipads, cell phones, and laptops? Google announced their Glass concept which will change the way we capture and organize data. Apple’s “watch” not only adds convenience but applications limited only to our imagination.

Do you remember the newspaper? How about some local magazine or that special edition publication you waited every other month for? Let’s not knock the publishers of print-media after all they are the first physical version of the internet. Nowadays, the major player in delivering information is done through the technological advances in digital communication. Specifically, the technology applications field will continue by leaps and bounds to integrate everyday practical things we do in a seamless way.

As I was growing up, I remember the computer being somewhat of a big deal. We were the generation transitioning into the evolution of computing. Today, children often have an ipad in their hands as quickly as they are able to pick them up. I did not embrace this new evolution nor did I turn my back. In the last two weeks, I have attended a few technology events. These events led me to believe we haven’t even tapped into what our future will look like. The world’s information will be delivered quickly and efficiently to anyone on any platform. I’m not a creative person but this was my takeaway as I left these events.

Being in the real estate industry, I envision our business to drastically change even further from what it is today. Although buying a home still appeals to our senses, the traditional methods of searching will no longer apply. For instance, looking for an “Open House” through the Sunday newspaper may not get you very far especially since most home Buyers use online searching as their primary choice. Online buyers are quick enough to take a look that day to schedule something that afternoon with the possibility of making an offer if they like the property. The applications to bring up-to-date information accurately and efficiently will be intertwined with our industry as our consumers demand the data to fit their criteria. There will be innovative products out there to deliver the information that will be part of our daily lives. Who thought we would be so “naked” without our cell phones? Just as Amazon has conveniently brought to us the world’s store, it would not surprise me if the ease of purchasing real estate was conveniently done with the click of a checkout button.

Purchasing A Home Will Be One Of This Decades Best Investments

Buying a home today can be one of the most significant investment decisions you will ever make. It will not be the same experience if you had purchased a home 10 years ago. The primary reason is home prices and mortgage rates are the lowest they will ever be. It has been over 50 years since interest rates have been this low (source: Federal Reserve on the 30-year Bond). To put this into perspective; the world’s population in 1960 was a little over 3 billion (7 billion now). Neil Armstrong would set foot on the moon about a decade later. There have been numerous wars including Vietnam, Korea and conflicts in the Middle East. You get the point.

Since 2008, the price of homes fueled by numerous foreclosures and short-sales has spiraled downward. I believe we are in the recovery process but we have just turned this corner. In essence, we are still at the bottom of the market with some ways to go. Inflation, without a doubt, is coming. Prices are still low in certain markets however you will see a quicker increase in value in others. I would not consider this to be normal so you would need to perform some due-diligence.

With rates at an-all-time-low and home prices still at very affordable levels, you have a recipe for a very positive and favorable investment. Mortgage payments would rival and in some cases surpass those of higher rental payments. These are all positive benefits for the future homeowner. When you include inflation, you not only build equity but you also increase your net worth.

With all that is happening in the world, the crisis in Europe, the price of Gold dropping and the overall bearish position of our stock market, I would say purchasing a home has never been more appealing.

FHA Loan vs. Conventional Loan

When it comes time to choose a loan, many people can be overwhelmed from the different types of loans that are available. It doesn’t help that there are plenty of lenders, banks, brokers and other financial institutions to choose from. It always seems that whomever you speak to may give differing views on lending information and practices. The experience of finding the right loan can be somewhat confusing, overwhelming and stressful. Let’s look at the types of loans that are available:

A Conventional Loan is a salable loan that is not affiliated with a government agency. These loans are guaranteed by Fannie Mae or Freddie Mac and are underwritten by their guidelines to ensure sound practices of issuing credit based on income, assets and collateral. These guidelines are widely accepted by lenders, financial institutions and banks which allows these entities to sell mortgage loans to Fannie Mae or Freddie Mac directly. Guidelines may differ based on credit score, loan amount, down payment, etc.

A FHA Loan is a government-issued loan. This loan is backed and fully insured by the US Department of Housing and Urban Development. One primary difference between a Conventional Loan and a FHA loan is with an FHA loan, you can bring a minimum of 3.5% down payment when making a home purchase. Another difference is the source of the down payment can be gifted by family, friends or employer. There are also some guideline differences but that would depend on your particular credit and income profile.

This is a broad and general overview of the two major types of loans that are available. Factors such as location of the property, type, credit score and loan amount will determine eligibility of the loan qualification. This should serve as a basic understanding on the key differences of available loan products. 

Tips on Getting Your Purchase Offer Accepted

California’s housing market appears to be heading in the direction of a Seller’s market. With inventory in certain price ranges at an all-time low, Sellers are seeing multiple-offers once again. Listings in the price range of $600,000 and below seem to sell quickly. The chance of these properties going into escrow within 30 days is highly likely so one has to be prepared.

The level of difficulty to get an offer accepted on a home purchase has increased. To this point, we’d like to make some suggestions on how you can increase the chances of getting your offer accepted. As a reminder, if you like a house enough to make an offer, assume there are 15 other people who feel the same. Some of which will be presenting all cash offers. This doesn’t mean that you are automatically going to be rejected but it does mean your offer will need to stand out. In the many years I have been involved with real estate and finance, here are some ways I have found Buyers to be successful in a bidding war:
     1. Find a Buyer’s agent that knows the area very well. Chances are the agent will most likely know the Listing agent.
     2. Personalize your offer by creating a profile on yourself and your family. This lets the Seller know what they would be selling to and that you actually went the extra mile to let them know you are truly interested in the property.
     3. Be prepared to spend days, nights and weekends to find your property. Properly priced new listings won’t last too long so the sooner you see it, the sooner your offer gets seen.
     4. Prepare a game plan between yourself and your spouse to view homes and write offers. Chances are your schedules won’t be exact so it’s important to detail what you like, how you will tour homes, and how you will present offers.
     5. Get loan approval for your home price range.

For a list of lenders and real estate agents, please contact us at marketing@mypropertychannel.com

Renters Boon

The housing industry is definitely in the recovery process. Where it will lead is anyone’s guess however, if history suggests anything, we will have a boon. Now it does not take a rocket scientist to figure out our economy is based on a cycle. We happen to be at the bottom of one and all things indicate that we are trending positively from a recession to growth. Depending on who you ask and what you read, not all experts agree on the timing of the growth stage. This brings us to our topic of discussion.

Renters make up approximately 40% of new home buyers. This includes previous homeowners and first-time home buyers. This is an important statistics because renters today are equipped with resources to make a well-informed decision on what to purchase. The internet provides an enormous tool to research properties and real estate agents, which allows significant amount of due diligence to be performed prior to a home viewing. The reality is renters have a certain expectation on what they are looking for. Many renters I know are handy and enjoy do-it-yourself projects. Keep in mind, that many renters were once previous home owners so they understand periodic maintenance and improvement. They have made it clear that minor cosmetic to major construction work is something they will not shy away from and some even prefer it. Who wouldn’t want an under-valued asset?

With rental rates at a high and vacancies at a low, renters can choose to make a purchase that will only benefit them for many years to come. Include the lowest rates in history and low prices; you have a recipe for many renters that can pave the way to economic growth.

300 South Snyder Place West Covina, CA For Sale

New Listing in West Covina, CA – Los Angeles County

Great home beautifully constructed in a peaceful neighborhood just minutes from South Hills Country Club. Walk up to a huge wrought-iron double-door entry. Enter into a lovely foyer with a spiral staircase, to the left you have a formal living room with a marble fireplace connected to a private library with coffered ceilings and wood paneled walls. The formal dining room is adjacent to a large media room complete with a build-in bar, perfect for entertaining. The kitchen includes all stainless steel appliances, built-ins include: side-by-side refrigerator, double ovens, coffee station and microwave. It features a center island with counter-tops, cook-top and breakfast bar. All 5 bedrooms are upstairs including the laundry room. The master bedroom includes an on-suite bathroom with a double-sink vanity area, step up Jacuzzi tub and separate shower.

For complete details and agent information: http://www.mypropertychannel.com/West-Covina-CA-Homes-For-Sale/300-South-Snyder-Place-MLS-97866436208