Here is an article from the Wall Street Journal that I think you will appreciate! Enjoy. Crista :)
By SARAH MAX
Even in this market, buyers can get tripped up. Here are a few do's and don'ts for first-timers..
Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal homebuyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.
Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the foul market–and the record low mortgage rates.
But woe to the overconfident buyer. Here are five common missteps that first-time home buyers make.
1. Snubbing the real estate agent
With so many websites offering a mass of data on listings, who needs an agent? Most people, actually. Finding a house and figuring out comps–the price of comparable homes on the market–is the easy part. Managing the nuances of offers, inspections, financing and all the other pivotal steps to buying a home is where many new buyers tend to get tripped up, says Shii Ann Huang, an associate broker with The Corcoran Group in New York.
When you hire an agent to act as your "buyer's representative," she's obligated to put your interests first, even if her commission is paid by the seller and based on the sale price. Skeptical? That's all the more reason to find an agent on your terms. Ask friends and acquaintances for referrals and interview two or three candidates before deciding.
But don't let the agent find you. When Viviane Ugalde and her husband, both physicians, bought their first home in Sacramento nearly two decades ago they made this mistake. "We stumbled onto an agent when she saw us peeking in the windows of an empty house for sale," Ms. Ugalde recalls. The agent, who happened to live on the same block, came out of her house (wearing pajamas), offered to show the couple around the neighborhood, and ultimately helped them find a house. Then the agent, who was new to real estate, neglected to show up for the closing. "It was scary and confusing signing what seemed like a thousand pages," says Ms. Ugalde.
2. Guesstimating how much you can afford
Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt and then get a dose of cold water when lenders refuse to qualify them for that amount. "The process is so different than it was four or five years ago," says Diann Patton, a broker with Coldwell Banker in Grass Valley, Calif. Not only are lenders reading loan applications closely, she says, they're verifying employment and running credit checks multiple times during the process.
Make a date with a mortgage broker or banker before you get serious about your search, says Ms. Patton. Remember, too, that the costs of buying and owning a home go well beyond the sticker price. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.
3. Letting charm cloud your judgment
No one will fault you for falling hard for a charming older home. But, unless the house has been painstakingly remodeled or you're prepared to pay for repairs and upgrades, an old house can quickly lose its allure. Last year Alison Koop, a public relations manager for the University of Washington, came dangerously close to saying "I do" to a seemingly fabulous mid-century home in northeastern Seattle. Ms. Koop was so smitten with the big windows and vaulted ceilings in the living room that she neglected to notice the exposed wires, shoddy roof and other structural problems. Any delusions Ms. Koop had were laid to rest in the guest bathroom. "When the inspector turned the faucet on," she says, "the spigot fell off, hitting the floor of the tub with an exclamatory thunk."
If you're considering an old home, don't let the inspection be your last line of defense, says Jay Papasan, vice president of publishing at Keller Williams Realty. "Negotiate a long due diligence period," he says. That gives you time to get real estimates from contractors and back out if need be.
Of course, new homes aren't without their drawbacks. Recently, many newly built homes experienced serious problems with Chinese-made drywall, for example. Proceed with care whatever the home's age.
4. Focusing on the house, not the hood
In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and marathon commutes. When Laurie Tarkan and her husband bought their first home in 2001 they were so infatuated with the circa-1924 three-bedroom cottage that–in addition to brushing over some of the headaches of an old house –they didn't give a whole lot of thought to its somewhat out-of-the-way location about a mile from downtown Maplewood, N.J., a popular New York suburb. "As a first-time buyer you're not aware of all the things you should think about that aren't about the house," says Ms. Tarkan, who after living in New York City for 17 years, still hasn't gotten used to driving everywhere.
Spend as much time as you can in your future neighborhood, ideally on different days and times. Eat in the restaurants, drop in a yoga class, test drive your commute.
5. Making arbitrary offers
With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them–all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.
If the house has been on the market for months, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity and market trends, and don't be afraid to start the bidding low. If the house is fresh on the market (or recently foreclosed) and other buyers are circling the block, put your best foot forward but don't get suckered into a bidding war.
Tuesday, September 14, 2010
Friday, September 10, 2010
Who got hit hardest during this California Foreclosure Crisis?
I saw this article in a First Tuesday newsletter that I receive and I thought it was worth forwarding. It addresses who was hit hardest during the CA foreclosure crisis. I think you will find it interesting. I remember during these times, with the advent of stated income loans, and low introductory rates, many people were purchasing homes they truely couldn't afford in the long term. I hope we have learned our lesson! Enjoy. Crista :)
Who suffered the most in this California foreclosure crisis?
By Krista Craig • Sep 9th, 2010 • Category: real estate newsflash
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Statistics about California’s foreclosure crisis involving loans originated between 2004 and 2007 abound. During the period from July 2006 through October 2009, 48% of California homes foreclosed on and repossessed by lenders were owned by Latinos, the ethnic group hardest hit by California’s foreclosure crisis as reported by the Center for Responsible Lending (CRL).
Further, 54% of African-Americans and 47% of Latino homebuyers in 2006 were charged higher interest rates on their mortgages for single family residences (SFRs) than non-Hispanic, Caucasian borrowers. Today, Latinos account for nearly half of California’s foreclosure volume, but they only make up 21% of California’s homeowners and one-third of California’s adult population. However, the high volume of foreclosures these homebuyers suffered was not the result of their ethnicity, but rather the terms of the loans the lenders saw fit to give them.
first tuesday take: The most revealing factor in the CRL report is the fact lenders targeted then steered Latinos and other minority borrowers into unacceptable, improper real estate financing — adjustable rate mortgages (ARMs) — solely to increase profit without separate economic justification. With exposure to predatory lending practices, no first-time homebuyer was safe (much less protected by the enforcement of regulations) from knowingly risky mortgages made during the Millennium Boom. These ARM loans, improper when made, now weigh heavily as a contributing factor to the dire straits of California’s real estate market since nothing is being done to square loan balances with current home values. [For more information on ARMs, see the March 2010 first tuesday article The danger of an ARMs build-up.]
Re: “Dreams deferred: impacts and characteristics of the California foreclosure crisis” from the August 2010 Center for Responsible Lending report; “Foreclosures in state hit Latinos hardest” from the San Francisco Chronicle; “California home foreclosures hit Latinos hardest, study says” from the Sacramento Bee; “Study: how to stop unnecessary foreclosures” from the Orange County Register.
Copyright © 2010 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.
Who suffered the most in this California foreclosure crisis?
By Krista Craig • Sep 9th, 2010 • Category: real estate newsflash
Share this with a friend!
Statistics about California’s foreclosure crisis involving loans originated between 2004 and 2007 abound. During the period from July 2006 through October 2009, 48% of California homes foreclosed on and repossessed by lenders were owned by Latinos, the ethnic group hardest hit by California’s foreclosure crisis as reported by the Center for Responsible Lending (CRL).
Further, 54% of African-Americans and 47% of Latino homebuyers in 2006 were charged higher interest rates on their mortgages for single family residences (SFRs) than non-Hispanic, Caucasian borrowers. Today, Latinos account for nearly half of California’s foreclosure volume, but they only make up 21% of California’s homeowners and one-third of California’s adult population. However, the high volume of foreclosures these homebuyers suffered was not the result of their ethnicity, but rather the terms of the loans the lenders saw fit to give them.
first tuesday take: The most revealing factor in the CRL report is the fact lenders targeted then steered Latinos and other minority borrowers into unacceptable, improper real estate financing — adjustable rate mortgages (ARMs) — solely to increase profit without separate economic justification. With exposure to predatory lending practices, no first-time homebuyer was safe (much less protected by the enforcement of regulations) from knowingly risky mortgages made during the Millennium Boom. These ARM loans, improper when made, now weigh heavily as a contributing factor to the dire straits of California’s real estate market since nothing is being done to square loan balances with current home values. [For more information on ARMs, see the March 2010 first tuesday article The danger of an ARMs build-up.]
Re: “Dreams deferred: impacts and characteristics of the California foreclosure crisis” from the August 2010 Center for Responsible Lending report; “Foreclosures in state hit Latinos hardest” from the San Francisco Chronicle; “California home foreclosures hit Latinos hardest, study says” from the Sacramento Bee; “Study: how to stop unnecessary foreclosures” from the Orange County Register.
Copyright © 2010 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.
Tuesday, September 7, 2010
Lastest Market Report!
Hi, I wanted to pass along this real estate market report that I received from an associate and mortgage consultant, Glenn Brickner. He does a good job of relaying key information in easy to understand language. Enjoy! Crista :)
For the week of September 6, 2010 – Vol. 8, Issue 36
>> Market Update
INFO THAT HITS US WHERE WE LIVE Last Thursday, July Pending Home Sales came in UP 5.2%. This measure of signed contracts on existing homes indicates we should see an increase in Existing Home Sales for August and September. Some analysts feel it shows the start of positive market movement after the end of the tax credit, which pushed signed contracts forward into April. We now have a new batch of buyers looking to take advantage of today's affordable prices and historically low mortgage rates.
Speaking of prices, Standard & Poor's/Case-Shiller National Home Price Index reported home prices UP 1.0% from May to June in 20 major U.S. cities. This was the index's third straight gain, which many experts feel came from the increased demand due to the tax credits. So sellers still need to be flexible, since not as many eager buyers are now in the market. But prices do seem to be stabilizing, so buyers would do well to act on a property they like, rather than hold out for any significant price declines going forward.
National average mortgage rates have recently been at historic lows. But in their latest forecast, Mortgage Bankers Association economists see rates going up slightly in the last three months of the year, rising a bit above that for 2011, then perhaps up another percentage point by the end of 2012. More reason for buyers and refinancers to not drag their feet!
>> Review of Last Week
POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, ending with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.
There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.
Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.
For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.
Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels.
Glenn Brickner
Loan Officer
2173 Salk Ave #100
Carlsbad, CA 92008
Office: 760 804 5773
Mobile: 760 310 2034
Fax: 866-215-5268
For the week of September 6, 2010 – Vol. 8, Issue 36
>> Market Update
INFO THAT HITS US WHERE WE LIVE Last Thursday, July Pending Home Sales came in UP 5.2%. This measure of signed contracts on existing homes indicates we should see an increase in Existing Home Sales for August and September. Some analysts feel it shows the start of positive market movement after the end of the tax credit, which pushed signed contracts forward into April. We now have a new batch of buyers looking to take advantage of today's affordable prices and historically low mortgage rates.
Speaking of prices, Standard & Poor's/Case-Shiller National Home Price Index reported home prices UP 1.0% from May to June in 20 major U.S. cities. This was the index's third straight gain, which many experts feel came from the increased demand due to the tax credits. So sellers still need to be flexible, since not as many eager buyers are now in the market. But prices do seem to be stabilizing, so buyers would do well to act on a property they like, rather than hold out for any significant price declines going forward.
National average mortgage rates have recently been at historic lows. But in their latest forecast, Mortgage Bankers Association economists see rates going up slightly in the last three months of the year, rising a bit above that for 2011, then perhaps up another percentage point by the end of 2012. More reason for buyers and refinancers to not drag their feet!
>> Review of Last Week
POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, ending with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.
There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.
Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.
For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.
Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels.
Glenn Brickner
Loan Officer
2173 Salk Ave #100
Carlsbad, CA 92008
Office: 760 804 5773
Mobile: 760 310 2034
Fax: 866-215-5268
Friday, September 3, 2010
Great video of North San Diego County Market Summary
This video is a must see if you want an easy, quick summary of the North County housing market. North County Housing statistics are compiled by Cal State San Marcos and here is their latest report:
http://www.nsdcar.com/video/brownreport/index.php
You will see that housing prices have steadily increased! Number of sales have dipped since previous months. I highly recommend you take a momemnt to check it out. Let me know if you have any questions. Thanks, Crista :)
http://www.nsdcar.com/video/brownreport/index.php
You will see that housing prices have steadily increased! Number of sales have dipped since previous months. I highly recommend you take a momemnt to check it out. Let me know if you have any questions. Thanks, Crista :)
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