Foreclosures Fall Again

October 11, 2011 By admin Leave a Comment

Foreclosures fall after sizable increase in the month of August

After a substantial jump in foreclosures in the month of August, largely a result of Bank of Americas tremendous inventory of distressed properties, foreclosures went back to a level more in line with the prior month, yet well below peak foreclosure numbers. California Foreclosures have dropped nearly 56 percent since its highest levels.

Filings for Notice of Defaults fell dramatically from a high of 58,623 in March 2009 to 25,778 as of today. The state of Arizona also had a similar decline in the number of Notice of Trustee Sale filings, from a high level of 14,722 in March 2009 to less than 6,000 filings in September 2011. This represents a decrease of nearly 60%. The state of Washington, which had the biggest decrease of any state, with 71.5 percent fewer Notice of Trustee Sale filings last month, than at the highest level back in June of 2009.

Overall sales of Foreclosures were a different story this month. Arizona, California and Nevada, all showed an actual decrease in sales of foreclosed homes, while Oregon and Washington both had increases. Even with the declines in overall sales, the percentage of foreclosed homes bought by third parties, generally investors, was at or near it’s highest levels.

In California for example, third party investors represented 27.4 percent of all sales last month, which is a record in California. In the state of Arizona, the number of investor purchased homes reached 38.3 percent, Nevada even came close to a record third party sales month, set back in the month of August at 29%. Foreclosure home sales to third parties in Washington was up 15%, and Oregon was the only state to have an actual decrease.

Filed Under: Foreclosures, Helpful Tips, Market Conditions, Real Estate Blog, REO Properties

30-Year Fixed Mortgage Rate Hits New All-Time Low

September 14, 2011 By admin Leave a Comment

Home Buying in Orange County CA – 30 Year Mortgage Rates

Home Mortgage interest rates for 30-year fixed mortgages fell once again this week, with a rate borrowers being quoted on websites such as Zillow Mortgage Marketplace at 3.91 percent, down from 3.92 percent this same time in the previous week. This interest rate represents the lowest rate recorded since the launch of Zillow’s Mortgage Marketplace in 2008. The previous low was 3.92 percent, first recorded back on Aug. 10, 2011.

The 30-year fixed mortgage rate remained below 4 percent level for most of last week, fluctuating between 3.92 and 3.99, until climbing to 4.09 percent just yesterday. The intereest rate quickly returned back to 3.92 percent during the same day and then climbed one last time before dropping suddenely to the current rate this morning.

In addition, the 15-year fixed rate mortgage rate this morning was 3.12 percent and for 5/1 Adjustable Rate Mortgage’s (ARM’s), the rate was only 3.48 percent.

All signs are pointing to one of the countries best real estate buying opportunities in many years. If you are thinking of purchasing a home anywhere in Orange County California, there may not be a better time than now, with these interest rates at all time lows and home prices at 6 and 7 year lows.

Cities such as Ladera Ranch CA, Mission Viejo, San Juan Capistrano, Coto De Caza and many others have excellent home buying opportunities right now.

The choices of Short Sale Homes, Bank Owned Homes and Foreclosure opportunities are plentiful in these outstanding neighborhoods.

For more information about home buying opportunities in these areas call mark (949) 292-5511 or Deborah (949) 292-5509

Filed Under: Coto de Caza, Helpful Tips, Ladera Ranch, Market Conditions, Mission Viejo, Mortgages, Real Estate Blog

New California Law will require Ladera Ranch Home Owners to install Carbon Monoxide Detectors

June 7, 2011 By Jim Starkey Leave a Comment

New California Law will require Ladera Ranch Home Owners to install Carbon Monoxide Detectors

A new California law that requires California homeowners and California rental owners to install carbon monoxide detectors will go into effect January 1, 2011 for single family dwellings and January 1, 2012 for multi-unit residences. There are many articles suggesting this law comes into effect in July of 2011. Anyone interested in viewing the entire bill click on SB 183 . The bill will change the language in the transfer disclosure statement required in transactions including the sales of real property. Under the existing law a seller of a single family dwelling must disclose to a buyer that he/she has installed an operable smoke detector in the home as required by law. This bill revises the statutory transfer disclosure statement as follows:

Requires the seller to check off whether or not the property has one or more carbon monoxide devices in the property. (i.e. gas burning stoves, ovens, and water heaters)
Adds a footnote to the statement advising buyers that installation of carbon monoxide device is not a precondition of the sale.
Requires the sellers to certify, as opposed to checking off as under current law, that the property is in compliance with laws requiring smoke detectors and the bracing of water heaters.

This bill is intended to reduce the avoidable deaths of Californian’s due to carbon monoxide poison. Home owners considering selling their homes should consider becoming compliant with this regulation sooner rather than later. The new devises range from $17-$40 dollars and could save your life. To find a current list of carbon monoxide alarms simply click here.

For more home safety tips or to sell or buy a home in Orange County California call your Priority Real Estate Agent today at 949-900-3800.

Filed Under: City News, Helpful Tips, Home Improvement, Home Safety, Real Estate Blog

Selling a home in a Sea of Bank Owned Homes, Foreclosure Homes or Short Sale Homes

February 1, 2011 By admin Leave a Comment

Selling in a Sea of Bank Owned Homes, Foreclosure Homes and Short Sale Homes

If your neighbors bank-owned home is for sale right next door, but the remaining homes in neighborhood for sale are equity sales, pricing is less of a factor. However, when a majority of sales and listings are bank owned homes, foreclosure homes or short sale homes, then pricing certainly becomes a much more important concern. The key is, like it or not you must compete with these distressed properties in order to to sell your home in this environment.

The current market value of your home in this scenario will be greatly impacted by these bank owed homes, foreclosure homes and short sale homes, especially when they represent the lions share of homes in the neighborhood.

Back just a few short years ago when the market was at a furious pace, appraisers simply did not have to seriously consider these distressed properties when appraising a home. This is because prices were increasing at the time, and there were just fewer distressed homes for sale back then. In our market today, an appraiser must pay closer attention to the number of distressed sales as well as current listings of distressed homes So you may ask yourself, how do I compete?

Here some guidance with regards to pricing your Home that has equity in a market of bank owned homes, REO’s, Foreclosures and Short Sales.

Pricing a home correctly is vital to selling successfully, especially in these troubled times. You have to consider the market, recent sales, active listings as well as the direction of the market itself. Keep in mind that no matter what you believe your home is worth, the fact remains that a buyer is only willing to pay what they believe the market says it is worth at the given moment in time. In fact, even if you were offered more than the asking price of the home, if an appraiser is unable to appraise the home at the purchase price, than a buyer would simply be unable to buy the home at that price. The only way would be if were willing to come up with cash as close of escrow to make up the difference between actual appraisal and the offered price. I would not count on that!, What would you do.? Would you pay more than the home is worth?

Think about these questions when determining price:

Why would any buyer decide to purchase your home versus a bank owned home, foreclosure home, REO home, or a short sale home?

Would a lender be able to appraise your home for more than the bank owned homes, foreclosure homes or short sale homes in your area, and why?

What are the benefits to your home versus a distressed sale like bank owned homes, foreclosure homes, REO homes, or a short sale homes?

Here is the reality check, your home is not necessarily worth much more than bank owned, foreclosures, or short sales, even if you had s significant investment in upgrades to the home. Although all of us want to believe that these are worth 100% of what you may have paid for them, the bottom line is, an Appraiser will be unable to show much more than they are worth in the market as compared to other like properties. many upgrades in down markets may only be valued at 10% to 30% of what you paid, depending on the upgrade. Luxury items such as pools and spas are generally hardest hit in terms of appraised value.

Put yourself in a buyers shoes, and think about what you would do in this market. I would be willing to bet you would exactly how they do right now. They see the values dropping, opportunities galore, and unless your home is priced in the range they feel comfortable with, they will simply move on. They may buy a home that needs some work like carpeting, paint, touch up, small tile repairs etc., but once they see a bank owned home, foreclosures home or short sale home, then can see the benefit of spending far less to buy the home, and only spend a little to make the basic repairs or traditional upgrades. On the other side of the coin, if your home has equity, shows in move-in condition, and priced within a higher, but reasonable range of bank owned, foreclosures and short sales, buyers are more likely to decide to buy your home.

Think about it, if bank owned home, foreclosure home or short sale home is priced at $450,000 and likely needs $25,000 or more worth of repairs or improvements, as compared to your home that needs no repairs, a buyer may be willing to offer only $$475,000 to $500,000 for your home simply because they can move right in !

You should also carefully evaluate the local market of bank owned homes, foreclosure homes and short sale homes to see what the comparable sales are in the most recent 6 month period. Any further back than 6 months is typically not used on any appraisal so why even consider this in your comparison. Make sure you only consider homes within a range of no more than .5 miles (

You should also make sure that you stay within neighborhood lines, tracts and or actual dividers like major streets or highways. You do not want to compare sales from areas completely outside your immediate area.

A fair comparison of living square footage is another pricing issue. It is very important that your sales comparisons stay within a range no higher or lower than 10% from your home. Anything over 10% may begin to make unfair comparisons. Why would an appraiser compare a home of 2500 square feet to a home that is 3200 square feet?

Also make sure you consider age of comparable sales. If your home is built in 1975, and the comparable sales are built in 1995, that would be completely unfair to make the comparison.

At the end of the day, you should seriously consider all of the tips provided here, but you should consult with a local real estate professional to help guide you in the right direction. Believe it or not, think about pricing right at, or even slightly below the market place, this will almost always encourage multiple offers, which typically results in a selling price higher than the actual listed price. Results will certainly vary from place to pace, but this can be an effective selling strategy.

If you are still unsure about pricing your home or you would like to discuss selling your home with a Priority Real Estate professional agent, please call us at (949) 900-3800 for a FREE no obligation consultation.

More Home Selling Strategies- CLICK HERE

What is My Home Worth ?- CLICK HERE

Filed Under: Bank Owned, Helpful Tips, Market Conditions, Real Estate Blog, REO Properties, Short Sales

Year End Tax Tips

December 10, 2010 By admin Leave a Comment

Year End Tax Tips

Since 2010 is about to come to a close, and 2011 approaches, you should at least take a few moments to think about a year end income tax strategy. There are many areas you should be thinking about. These helpful tips just may lower your tax bill and save you money.

1. Income, expenses and deductions: If you are thinking about making any adjustments, you should look at how much you currently earn, spend and save, then consider any additional items you could deduct.

2. Check investment portfolio: If you have higher than normal capital gains, consider a last minute loss from a sale of stock to offset any capital gains income. Especially if the stock is a loss that may not show any positive returns in the near future. Better to benefit form the deduction than continuing to lose money anyhow.

3. Additional income deferral: If you have additional income, you may be able to defer this until after the start of the new year. This is especially helpful if you are self-employed. You could simply wait until late December to send out invoices due so you would receive these payments after December 31st and into January of 2011.

4. Pay January 2011 mortgage payment early: This is helpful if you need an additional mortgage interest deduction to offset another gains. Don’t forget to add this additional interest to the amount reported on the 1098 misc interest form sent by your lender.

5. Teachers; deduct your students: Teachers may take up to a $250 deduction on any materials purchased personally for your classroom. This tax deduction may also be taken by principals and anyone else employed by a school. Please consult with a tax professional if you are not sure about how to deduct this.

6. Self-employed; Big purchases: If you already planned to make any larger purchases in the near future, consider taking the plunge by year end for additional tax benefits and deductions. Purchasing business equipment or supplies are perfect last minute tax deductions, but make sure to save all your receipts.

7. Pay state taxes early: As long as you don’t see your personal income tax bracket being higher in the new year, you might want to make state tax payments prior to the end of this year. This allows you to take the additional deduction this year, rather than waiting until the end of next year.

8. Charitable donations: If you are fortunate to have additional money this time of year , consider donating some of this money to a charity. Save the receipts and use the charitable donations as deductions on your tax return. This is a wonderful thing to do, and you also benefit at the same time.

Regardless of which tips you are able to actually benefit from, you should always consult a professional CPA or tax preparer for any additional questions or concerns about any tax deductions or expenses you have thought about before year end.

Filed Under: Helpful Tips, Mortgages, Real Estate Blog

Top 5 Hottest Holiday Tech Gadgets

December 10, 2010 By admin Leave a Comment

Top 5 Hottest HolidayTech Gadgets

This year it’s all about the hottest tech gadgets, and there are 5 truly hot ones right now.

Although these “toys” are on the more expensive side, they will surly get the recipients attention, and you you may be able to benefit all at the same time. Nearly all of these gifts are great for the whole family, so even though you may have bought it for dad, you may be able share in the fun as well.

Here is a list of the hottest tech gadgets from 2010.

e-Readers

Industry analysts are saying loud and clear that e-readers are one of the hottest tech gadget items this holiday season. Compared to last year when only a few e-readers were on the market, there are at least a 10 available now, and more on the way into next year.

e-Readers are very cool, but if the person is not a “real” reader, you should consider a tablet PC, like the iPad from Apple or other new tablet devices. e-readers are more limited since they are designed for reading books or newspapers and don’t offer much else.

You should consider at least the following two things if you decide to purchase an e-Reader as a gift. If the person getting the gift likes to spend time outdoors while they read, then consider Amazon.com’ Kindle ($139) because it has an “E Ink” display. They are more like paper, and are good for people who want to read outside.

The alternatives with LCD displays do suffer some glare issues in strong sunlight. The trade off is that they offer color, and they are backlit so you can read in bed at night. Consider the Barnes & Noble Color Nook ($250) as one of your options for an LCD screen and color, especially if the person does not need the full capabilities of a tablet PC.

Tablet computers

If an e-reader is too limited or you are a person with many tasks all the timer then the tablet PC is the way to go. This way you can still have the benefit of an e-Reader, plus the added bonus of a color display, real internet, email and other applications for around $500.

PC tablets are also referred to as a “slate” computer. This new tech category is basically a laptop computer with no attached keyboard , so rather than a mouse or trackpad, you simply use your fingers on the touch-sensitive display.

The most recognized tablet is of course the one that started the revolution, Apple’ iPad (4 models starting at $499) The iPad was originally launched in January of 2010 and has seen meteoric growth in sales.

Companies are now scrambling to compete with Apples iPad, and Samsung is one of the early players with The Galaxy Tab. This features a 7-inch touch screen, as compared to a 10-inch screen on the Apple iPad. It does have a built-in camera and the iPad does not. The unfortunate part is the Galaxy Tab is more expensive starting at $600.

If you maybe-prolly-kinda are going to buy a tablet for a nerd on your list, again, think about whether he or she really needs it. Tablets are great for consuming media — so browsing the internet, watching movies, playing games. They’re not so hot for creating stuff.

Connected Televisions

Connected Televisions allow you to connect to the internet. Think of them as a computer with a much bigger screen, that also allows you to watch YouTube videos or even streaming movies with Netflix.

Some of the systems like Google TV from Sony ($800), feature full keyboards so you can search like you would on a regular computer.

This is not like hooking up your laptop to the TV now. Connected Television is designed to help you locate media and content very quickly from web sites like Hulu, YouTube or Netflix, and even websites to buy TV shows or movies, like Apple’s iTunes .

3-D Television

3-D television is hot this year, especially since so many major motion pictures are now shown in 3-D at your local movie theater. 3-D television first appeared on the market in 2010, and unless you are a real tech geek, you most likely will want to wait until the costs are lower and the technology improves, and it will!

Keep in mind that in addition to the costs of the television, you need to consider how many people may want to watch in 3-D, this means you may need to buy extra 3-D glasses, which is required for viewing in 3-D and these can cost $100 per pair.

Which should I buy if I really want one? There are several 3-D TVs on the market from Panasonic, Sony and others. Before you decide to buy a 3-D television, consider that these can cost from $1,750 to more than $3,000, and the technology will be changing.

Smartphones

Let’s face it Smartphones are HOT! The iPhone, Android, Windows Phone, and more on the way. These have truly started a technology revolution.

Once you have decided to buy a smartphone, you must consider 2 key things: Which service provider — AT&T, Verizon, T-Mobile, Sprint. Which operating system — Google Android, Apple iOS, or Windows Phone 7.

You should consider the phone service provider first. The phone could be very cool, but if you cannot make a phone call then the rest may not matter. You also need to think about any contract you may be in now, and also a new contract should you decide to buy one of these phones.

As for the operating system, this is simply a matter of preference. many people prefer the iPhone (iOS as it is called), some prefer Google’s Android operating system. There is no right answer, and only you can decide.

We suggest that you visit the stores to actually see the operating systems in your hand before you make your final decision. You should also seriously consider the available applications or “apps” Apple’s iOS has significantly more apps right now than for any other mobile operating system.

Filed Under: Helpful Tips, Real Estate Blog, Technology

Christmas Holiday Safety Tips

December 8, 2010 By Jim Starkey Leave a Comment

Christmas Holiday Safety Tips

The holidays are everyone’s favorite time of year. With the holidays come hazards, Christmas Tree Hazards, Toy Hazards, fire hazards, and road hazards. We have listed important safety tips to insure a safe holiday for all. Have a happy and safe holiday from Priority Real Estate.

Trees

Purchase an artificial tree with a “Fire Resistant Label”
If your preference is a live tree check for freshness; fresh trees are green and needles are difficult to pick or break from the tree. A fresh tree has sticky sap at the base and does not shed needles when bumped on the ground.
Position your tree away from fireplaces, radiators, and portable heaters. Do not place trees in high traffic areas. Water the tree daily.
Cut off an additional half inch from the bottom of the tree prior to setting the tree up, this will allow for better water absorption and a longer lasting fresher tree which will be more fire retardant.
Dry heat dry’s a tree quickly keep the tree filled with water continuously.

Lights

Check all lights to insure they are secured tightly and make sure all wires are not frayed.
Never use electric lights on a metallic tree. Faulty lights may positively charge the tree and electrocute anyone who touches the tree.
Make sure all lights used outdoors are certified for outdoor use. Secure lights with insulated staples to reduce the potential for fire and electric shock.
When taking the lights down unplug before taking the lights down. Never pull on the wire to extract the staple use needle nose pliers to extract staples first.
Plug all outdoor electric decorations into circuits with ground fault circuit interrupters to avoid potential shocks.
Turn off all lights when you go to bed or leave the house.

Decorations

Use only non-combustible or flame-resistant materials as tree decorations. Choose tinsel or artificial icicles of plastic or nonleaded metals.
Never use lighted candles on a tree or near other evergreens. Always use non-flammable holders, and place candles where they will not be knocked over.
In homes with small children, take special care to avoid decorations that are sharp or breakable. Keep trimmings with small removable parts out of the reach of children to prevent them from swallowing or inhaling small pieces. Avoid trimmings that resemble candy or food that may tempt a young child to eat them.
Wear gloves to avoid eye and skin irritation while decorating with spun glass “angel hair.” Follow container directions carefully to avoid lung irritation while decorating with artificial snow sprays.
Remove all wrapping papers, bags, paper, ribbons and bows from tree and fireplace areas after gifts are opened. These items can pose suffocation and choking hazards to a small child or can cause a fire if near flame.

Toy Safety

Select toys to suit the age, abilities, skills and interest level of the intended child. Toys too advanced may pose safety hazards for younger children.
Before buying a toy or allowing your child to play with a toy that he has received as a gift, read the instructions carefully.
To prevent both burns and electrical shocks, don’t give young children (under age ten) a toy that must be plugged into an electrical outlet. Instead, buy toys that are battery-operated.
Children under age three can choke on small parts contained in toys or games. Government regulations specify that toys for children under age three cannot have parts less than 1 1/4 inches in diameter and 2 1/4 inches long.
Children can have serious stomach and intestinal problems – including death — after swallowing button batteries and magnets. Keep them away from young children and call your health care provider immediately if your child swallows one.
Children under age 8 can choke or suffocate on uninflated or broken balloons. Remove strings and ribbons from toys before giving them to young children.
Watch for pull toys with strings that are more than 12 inches in length. They could be a strangulation hazard for babies.
Parents should store toys in a designated location, such as on a shelf or in a toy chest, and keep older kids’ toys away from young children.

Food Safety

Bacteria are often present in raw foods. Fully cook meats and poultry, and thoroughly wash raw vegetables and fruits.
Be sure to keep hot liquids and foods away from the edges of counters and tables, where they can be easily knocked over by a young child’s exploring hands. Be sure that young children cannot access microwave ovens..
Wash your hands frequently, and make sure your children do the same.
Never put a spoon used to taste food back into food without washing it.
Always keep raw foods and cooked foods separately, and use separate utensils when preparing them.
Always thaw meat in the refrigerator, never on the countertop.
Foods that require refrigeration should never be left at room temperature for more than two hours.

Party Safely

Clean up immediately after a holiday party. A toddler could rise early and choke on leftover food or come in contact with alcohol or tobacco.
Remember that the homes you visit may not be childproofed. Keep an eye out for danger spots.
Keep a list with all of the important phone numbers you or a baby-sitter are likely to need in case of an emergency. Include the police and fire department, your pediatrician and the national Poison Help Line, 1-800-222-1222. Laminating the list will prevent it from being torn or damaged by accidental spills.
Traveling, visiting family members, getting presents, shopping, etc., can all increase your child’s stress levels. Trying to stick to your child’s usual routines, including sleep schedules and timing of naps, can help you and your child enjoy the holidays and reduce stress.

Travel

Plan trips in advance. Arrive early and leave early.
Be cautious of road conditions, remember bridges ice over first.
Be mindful of other drivers, there are many drivers under the influence this time of year.
Designate a driver.

Fireplaces

Before lighting any fire, remove all greens, boughs, papers, and other decorations from fireplace area. Check to see that the flue is open.
Use care with “fire salts,” which produce colored flames when thrown on wood fires. They contain heavy metals that can cause intense gastrointestinal irritation and vomiting if eaten. Keep them away from children.
Do not burn gift wrap paper in the fireplace. A flash fire may result as wrappings ignite suddenly and burn intensely.

Source, American Academy of Pediatrics (AAP) www.aap.org

Filed Under: Helpful Tips, Home Safety, Real Estate Blog

Retail Sales Show Strong November

December 2, 2010 By admin Leave a Comment

Retail Sales Show Strong November

Retail sales for the month of November showed a stronger than anticipated sales month, and gave retailers a good reason to be happier as the holiday season began.

Many retailers across different product categories reported monthly sales that exceeded industry estimates. This due to shoppers drawn in by the substantial sales and price discounts. Major retailers like Costco, Toys R Us, Target, The Apple Stores and Macy’s showed encouraging sales improvements.

According to Thomson Reuters the sales index rose by 6%, which exceeded industry expectations by nearly 3%, as compared to 2009, when sales rose less than .5% during the holiday selling season.

The great deals offered by retailers seem to entice shoppers to the stores and shoppers were more than ready for the deals.

The most positive signs were when shoppers continued to shop in the days after the normal Black Friday rush. Another encouraging sign is that the major department stores and specialty retailers had better than expected results as well.

Filed Under: Helpful Tips, Market Conditions, Real Estate Blog

Is Home Ownership Right for Me?

November 24, 2010 By Jim Starkey Leave a Comment

Is Home Ownership Right for Me?

Taking the step to home ownership is the single biggest decision most people make in their entire life. The question you must ask yourself is home ownership right for me? There are many advantages of owning your home. Owning your home means no longer paying rent and throwing away the biggest expenditure in most family’s budget, housing cost. Purchasing a home is the biggest investment most people will make in their life and in many cases the after tax cost of housing is less than renting.

How long do you plan on living in your home? Depending on the current market it may not make sense to buy a home if you do not plan on living in the area for a while. According to the national association of realtors United States homes appreciated 5.4% annually from 1968 to 2009. If home value is appreciating in your area faster then the rate of inflation it is actually possible to live for free. In most cases if your home is appreciating at 1.7% faster than the rate of inflation then you will recoup your housing cost for the time you lived in your home when you decide to sell. You will never live for free when you rent.

Once you have determined that owning a home makes financial sense there are some important things to know before you get started.

Top 10 things you need to know before you buy a home.

1. Check your credit. It is always important to be conscious of your credit, but it’s never more important then before you buy a home. Check your credit scores with one of the free credit report websites. If you are required to divulge credit card information to get your free score move to the next site. You want your FICO credit scores to be above 680 and scores above 720 will qualify for the best interest rates.

Consult with your lender or your Realtor for advice on how to improve your scores. The right professional can give you tips on how to rapidly improve your credit score as much as 40-60 points in as little as 15-30 days.

2. Buy a home within your means. Your total housing cost should not exceed 32% of your total gross household income. This cost should include total cost of housing which is defined as principle, interest, taxes, insurance and home owners insurance which is referred to as PITIA. So simply stated, your PITIA should not exceed 32% of your gross household income. Your total debt to income should not exceed 50% of your gross income. Total debt includes, PITIA, car loans, student loans, minimum payments on credit cards or any liability you have that is extended over 6 months or longer. If you have liabilities that will be paid off inside of 6 months pay them off before applying for a loan. This will help improve your FICO credit score.

3. Do you have enough for a down payment? The crazy lending days are over! Lenders have reverted back to the basics which includes requiring a down payment. Because of the lending practices that led to the recent financial failures, and the subsequent financial bailouts by the federal government, buyers are required to bring cash to the table when buying a home. Don’t be too alarmed just yet; there are programs you may qualify for as little as 3.5% down. Once again this is why it is imperative to work with a knowledgeable realtor. Your realtor will be able to assist you with all your real estate questions and concerns, they are even likely to have in in house lender or work closely with a lender.

4. Location! Location! Location! It is extremely important to buy in locations surrounded with high quality schools, low crime rates, conveniently located near shopping centers, and easy access to main transportation roads, highways, and freeways. Homes with views of Oceans, Mountains, Lakes, or city lights bring premium values. It is important to consider these features and many more when buying your home, because these are the features potential buyers’ will consider when it is time to sell your home.

5. Seek the advice of a Realtor. Realtors are trained professionals in real estate. Remember this is probably the single biggest investment you will be making for your family. You don’t seek the advice of your barber on whether you should consider brain surgery, so why would you trust the advice of just anyone when you are making the biggest financial decision of your life?

6. Should you buy your interest rate down? In many cases you will have the option of buying a better interest rate resulting in a lower monthly payment. Is buying the interest rate down in your financial best interest? When making this decision consider the cost of buying the better rate, the time you anticipate staying in the home, and the overall reduction in monthly payment. If the reduction in the monthly payment divided by the months you plan on living in the home exceed the cost of buying the better rate then it makes financial since to buy the rate down. Remember this investment when you consider refinancing at a later date. Have you paid for your last financial decision before you make the next one? Simply stated this means if it cost you $10,000 to buy a better rate resulting in a $100 a month saving you must plan on living in that home for at least 100 months or 8 years and 4 months in order for it to make financial sense.

7. Get a loan preapproval prior to beginning your search. This is extremely important, and there is nothing more discouraging than finding your dream home and discovering you do not qualify for the loan. Be weary of anyone offering to show you homes without asking for your preapproval letter. This should be a red flag that you may not be working with a properly trained real estate professional. A preapproval will assist your realtor in finding the perfect home for you that fits within your means.

8. Have your realtor provide you with a buyers comparative marketing analysis before you make an offer. Once you have found the perfect home that fits within your budget, you want to make sure you do not over pay for the home. Ask your realtor to show you some of the recent home sales in the neighborhood; ask to see some of the comparable homes currently listed so you can make an informed financial decision and make an appropriate offer.

9. Don’t make lowball offers. If your realtor has found you the perfect home that fits within your budget and you and your realtor have done your do diligence, make an offer that is inline with the comparable homes. It’s great to want a deal, but it is devastating to loose you perfect home for a couple thousand dollars. Remember this is where you plan to live for a long time and saving a few thousand dollars equates to insignificant monthly payments.

An offer of $10,000 dollars bellow the comparables comes out to be $50.67 a month over 30 years at 4.5% interest. Would you want to take the chance of loosing your dream home for a monthly cost of less than your cable bill?

10. Make sure to have your home inspected. It is very important to uncover all discrepancies in the home before you make this investment. Don’t be alarmed at the findings your inspector may find. Many homes will have numerous insignificant minor discrepancies just from normal wear and tear. Have your inspector explain the inspection report to you and seek their advice on what is important to repair and what is insignificant.

Filed Under: Helpful Tips, Real Estate Blog

4 Reasons to Sell your Home Today!

November 23, 2010 By Jim Starkey Leave a Comment

4 Reasons to Sell your Home Today

1. The Market has improved in Orange County. In fact most markets have either bottomed out or are at the verge of bottoming out.

2. Location, in Real Estate it is always about location. In the high demand location of Orange County California there will always be a demand for real estate.

3. Spring is just around the corner. The holiday season in November and December is traditionally slower for Orange County real estate as it is throughout the country. Homes start coming out on the market in mid January or early February for the spring buying surge. If a family is going to move then it makes since to sell in the spring in order to be moved in before the next school season.

4. Mortgage rates are back on the rise. Due to the recent change in monetary policy interest rate have begun to move higher. If interest rates return to more normal levels than money will be harder to borrow and there will be less qualified buyers in the market thus providing downward pressure on home sale prices.

If you are considering selling your home call 949-900-3800 for a free consultation; find out why you should hire a marketing company to sell your home and not a listing company.

Filed Under: City News, Helpful Tips, Market Conditions, Real Estate Blog

More Efficient Heating & Cooling

November 21, 2010 By admin Leave a Comment

More Efficient Heating & Cooling

Did you know that nearly half of the energy used in a typical home goes to heating and cooling your home. This is why it is so important to make good decisions about your heating and air conditioning (HVAC) systems. These simple, yet important decisions can have a tremendous impact on the monthly utility bills, not to mention comfort for you and your family . Take these steps to increase the efficiency of your heating and cooling systems.

Air filter changes

You should be in the habit of checking the air filters on a monthly basis, especially during high usage months, like summer and winter time. This is simple to do, if the filter looks dirty change it, or at least clean it with a vacuum to remove any items that may block good air flow. You should really change the filters at least every 3 to 6 months. A dirty air filter will prevent air flow, which in turn makes your HVAC system work much harder just to keep you warm or cool. A clean filter prevents dirt and dust particles from clogging the system, which prevents costly repairs or entire system replacements.

Yearly equipment check ups

Yearly check ups of your heating and cooling systems will keep them running efficiently and will prevent unnecessary repairs or malfunctions. Think of it like your cars tune up, it improves gas mileage, and overall performance. This is no different.

Programmable thermostats

One of the easiest ways to provide a more efficient system is to install a programmable thermostat in your home. These are especially good for people who are often not home during regular times throughout the week, or go on frequent vacations. When programmed properly these thermostats can save you nearly $200 per year in energy costs alone.

Seal all duct work

The ducts in your home that move air from a furnace, air conditioner, or even heat pump can be an area of tremendous energy loss. Simply by sealing and properly insulating these ducts will improve the efficiency of your system by 20 percent or more.

You should first check the ducts that run through your attic, unheated basements, or even the garage. Make sure you use duct sealant or metal tape to seal all seams and the connections between the ducts. Once properly taped and sealed, wrap them in special insulation to keep them cool in the summer warm in the winter.

ENERGY STAR rated system

Any equipment more than 10 years old should be checked by a professional HVAC contractor, especially if not performing properly. If your system is older, or not performing properly you should consider installing a new system that has the ENERGY STAR rating. ENERGY STAR rated equipment can reduce your energy bill by nearly $200 per year. Before replacing any equipment make sure you check the ducts and insulation for air leaks in your house. Sometimes, these can be simple fixes to common problems, and can avoid the extra expense of a new system

Professional Installations

If you have determined your old equipment needs an upgrade to a more energy efficient system, make sure it is professionally installed for the best performance. Poor installations can reduce your overall energy efficiency by as much as 35%, which costs you more on your utility bills

Filed Under: Helpful Tips, Home Improvement, Real Estate Blog

Mission Viejo Real Estate Market

November 20, 2010 By admin Leave a Comment

Mission Viejo Real Estate Market

The Mission Viejo real estate market has struggled in last few months, even though median prices in Mission Viejo climbed slightly. The number of home sales have decreased over the most recent reporting period, this is also apparent in the overall California real estate market.

According to OC Metro magazine, “Orange County sales fell 12.6% in July, compared to the same period in 2009, and prices fell 14.5% since June of this year. The drop in sales and prices has seen a trend across the entire state of California. The state reported a 20.8% drop in total home sales as compared to 2009.

For the rest of 2010, normally slower seasonal sales may have had an adverse impact on overall median home prices.

C.A.R. (California Association of Realtors) reported, Orange County’s median home prices saw a 6.9% increase in July, as compared to the same period of 2009, which rose to a median price of $449,000.

Newport Beach was again ranked one of the top 10 most expensive cities in California, with a median home price of over $1.1 million dollars. Lake Forest was among the top 10 cities in California which saw the highest increase in median home prices compared to 2009. Lake Forest saw an increase of over 24%

Overall Southern California’s home sales saw a decline. Home sales in Southern California fell 21.2% last few months for the highest drop in more than two years. DataQuick said the Southern California region saw 18,946 sales last month, compared with 24,104 in July 2009.

The median home price in Southern California declined 1.7 percent to $295,000 from $300,000 earlier in the year.

These prices are driving tremendous opportunities in the Mission Viejo Real Estate market. With rates at 40 year lows, it is certainly a good time to consider purchasing a home in Orange County. The combination of low rates and falling prices makes for the perfect storm of opportunity.