Attn: All California Realtors
Come join in on all the Fun as the San Diego Association of REALTORS® hosts its 18th Annual Real Estate Expo!
When: Friday, May 4, 2007
Time: 9:00 a.m. - 5:00 p.m.
Where: Town and Country Resort & Convention Center
Grand Exhibit Hall
500 Hotel Circle North
San Diego, CA 92108
Ok now It’s springtime in beautiful San Diego, and we’re experiencing some great opportunities in our real estate market. The loan limits for both FHA and Fannie Mae and Freddie Mac have been increased and this should act as a major stimulus for the housing industry and for those people wishing to own a home. In this edition, we bring you a couple of great articles; from the National Association of Realtors - ‘New HUD Conforming Loan Limits: What this Means For Housing, REALTORS®, and the Economy’ and from Realty Times - ‘What the Economic Stimulus Package Means to You’.
The CCDC recently released their 2008 Downtown San Diego Living Guide which lists housing in each of downtown’s eight neighborhoods - a great resource for anyone considering locating here. Finally, with summer fast approaching, we’ve included a handy Guide to San Diego Summer Camps 2008 to help you plan your summer fun - Enjoy!
You may have been searching for weeks to find the perfect home with your pre-approval letter in hand and have finally walked into a house that says “Home Sweet Home.” Now, as with anyone that has the dream of owning a home that fits the need of his or her family, you believe that with your pre-approval letter you will be able to move into this house quickly and have nothing else to worry about. Whoa! Hold on a minute. This is just the beginning of home ownership. Now, you will have to make an offer on the property, the seller will have to agree to your offer and then all that paper work begins. In most cases, if you are using a lender they will also have stipulations before you can receive that magic key to the front door. One very important part of the home buying process is getting the home inspected, even if it is a brand new home. With most lending companies, this is mandatory in order to fulfill the loan agreement. On the other hand, if it is not mandatory you should still act like it is because this inspection may save you headaches down the road along with your nest egg.
Now, you may be wondering why you should hire an inspector to inspect the property that you know you want. The answer is very simple.
A qualified home inspector will check the entire home to ensure there are no defect that might later on causing you hundreds possibly thousands of dollars to repair. If you are in the middle of searching for a home in the winter, you may not think about seeing if the air conditioner is working properly or if the swimming pool is need of any of repairs and the same goes for summer months and the appliances that you might use in warmer weather.
A professional home inspector will inspect every function of the home to ensure that all are in normal working order. These items include:
Structural Systems
Foundation Opinion
Electrical System & Components
Grading and Drainage
Roof covering
Roof Structure and Attic
Walls
Ceilings and Floors
Doors
Windows
Fireplace/Chimney
Porches/Decks/Carports
Electric
Service Entrance and Panels
Branch Circuits
Heating, Ventilation and Air Conditioning Systems
Heating Equipment
Cooling Equipment
Ducts and Vents
Plumbing System
Water Supply System and Fixtures
Drains, Wastes, Vents
Water Heating Equipment
Hydrotherapy Equipment
Appliances
Dishwasher
Food Waste Disposal
Range Hood
Ranges/Ovens/Cooktops
Microwave Cooking Equipment
Trash Compactor
Bath Exhaust Fans and/or Heaters
Whole House Vacuum Systems
Garage Door Openers
Door Bells and Chimes
Dryer Vents
Things most home inspectors do not inspect unless you specifically ask for these to be inspected include:
Lawn Sprinklers
Swimming Pools and Equipment
Outbuildings
Outdoor Cooking Equipment
Gas Lines
Water Wells
Septic Systems
Security Systems
Fire Protection Equipment
Examples of additional inspections you may choose to perform on your anticipated purchase.
Wood Destroying Insect Inspection
Well and Septic Inspection
Mold Inspection/testing
Lead Paint Inspection
Water testing
Asbestos Inspection
Lead Paint
After you sign a contract the home is yours, any work that needs done after that time will more than likely be yours to repair unless you have agreed to a home warranty.
This was sent by a retired Coca Cola executive. It came from one of his engineer buddies who retired from Halliburton. If you are tired of the gas prices going up AND they will continue to rise this summer, take time to read this please.
Phillip Hollsworth offered this good idea.
This makes MUCH MORE SENSE than the ‘don’t buy gas on a certain day’ campaign that was going around last April or May!
It’s worth your consideration. Join the resistance!!!!
I hear we are going to hit close to $ 4.00 a gallon by next summer, and it might go higher!! Want gasoline prices to come down?
We need to take some intelligent, united action. The oil companies just laughed at that because they knew we wouldn’t continue to ‘hurt’ ourselves by refusing to buy gas.
It was more of an inconvenience to us than it was a problem for them.
BUT, whoever thought of this idea has come up with a plan that can really work. Please read on and join with us!
By now you’re probably thinking gasoline priced at about $2.00 is super cheap. Me too! It is currently $3.19 for regular unleaded in my town.
Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at $1.50 - $1.75, we need to take aggressive action to teach them that BUYERS control the marketplace..not sellers.
With the price of gasoline going up more each day, we consumers need to take action.
The only way we are going to see the price of gas come down is if we hit someone in the pocketbook by not purchasing their gas! And, we can do that WITHOUT hurting ourselves.
How? Since we all rely on our cars, we can’t just stop buying gas.
But we CAN have an impact on gas prices if we all act together to force a price war.
Here’s the idea: For the rest of this year, DON’T purchase ANY gasoline from the two biggest companies (which now are one), EXXON and MOBIL.
If they are not selling any gas, they will be inclined to reduce their prices.
If they reduce their prices, the other companies will have to follow suit.
But to have an impact, we need to reach literally millions of Exxon and Mobil gas buyers. It’s really simple to do! N ow, don’t wimp out on me at this point…keep reading and I’ll explain how simple it is to reach millions of people!!
I am sending this note to 30 people. If each of us send it to at least ten more (30 x 10 = 300) … and those 300 send it to at least ten more (300 x10 = 3,000)…and so on, by the time the message reaches the sixth group of people, we will have reached over THREE MILLION consumers.
If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted!
If it goes one level further, you guessed it….. THREE HUNDRED MILLION PEOPLE!!!
Again, all you have to do is send this to 10 people. That’s all!
(If you don’t understand how we can reach 300 million and all you have to do is send this to 10 people…. Well, let’s face it, you just aren’ t a mathematician. But I am . so trust me on this one.
How long would all that take? If each of us sends this e-mail out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8 days !!!
I’ll bet you didn’t think you and I had that much potential, did you!
Acting together we can make a difference.
If this makes sense to you, please pass this message on. I suggest that we not buy from EXXON/MOBIL UNTIL THEY LOWER THEIR PRICES TO THE $2.00 RANGE AND KEEP THEM DOWN. THIS CAN REALLY WORK.
Keep it going!!!worth a try
There have been some questions regarding potential FHA buyers. 1st, they must be prequaled. FHA loans are FULL-DOCUMENTATION loans, so each potential buyer who may be a candidate for FHA must be prequaled in order to determine whether or not they can meet the documentation requirements. The following matrix will help you in determining FHA eligibility:
Loans < $417,000 the max LTV is 97.75% on a *purchase and rate & term
Loans > $417,000 to $697,500 the max LTV is 95% on a *purchase and rate & term
Loans < $417,000 the max LTV is 95% on a cash out refinance
Loans > $417,000 $697,500 the max LTV is 85% on a cash out refinance
Note: All loans > $362,791 require a credit score of 620
All loan < $362,791 require a credit score of 580
*The definition for a refinance with an appraisal for a rate & term is to add existing first lien, any purchase money seconds, any junior liens greater than 12 months old, closing costs, prepaid expenses, points and acceptable fees. HELOC drawn in the last 12 months in excess of $1000 is not eligible for inclusion unless home repairs/improvements can be fully documented.
All realtors if they are professional licensed realtors have a code of ethics to honor in that they will treat all parties equally. This is just one reason you should contact a realtor if you plan to buy a home.
Just because you wish to own your home, does not necessarily mean you know exactly how to go about purchasing a home. There are many things can contribute to the purchase such as your own buying power, the appraisal of the property, the inspection of the property, and even who is behind the sale of the property. Every home you see listed on the MLS has a seller that is normally in the background of the sell until the closing date. You will have to work with their realtor or have your own to do all the negotiating for you as the seller does. You will find that the seller can be an individual, a bank, a mortgage company, or even a group of investors. Each one of these sellers has their own way in which to sell property and professional realtors know the ins and outs of the various ways.
The reason to find a realtor that you feel comfortable with and one that you trust is very important. The ways a realtor will make your life easier include helping you learn your buying power, aiding in finding a loan source, help you with your quest in finding a home, do all the negotiating with the seller and his or her realtor on your behalf, finds out the scoop on all the inspections, valuations, etc… on the home you wish to purchase, and help you throughout the entire closing process.
Do you really know how much buying power you have? Once you give all your income information to a realtor, they can aid in finding a lender that will be able to match you with the perfect loan so you can begin the process to become pre-qualified. With a pre-qualification letter or a full qualification letter, you will know just how much money the lender is willing to give you for a loan, how much down payment you will need, and an estimate on your monthly costs.
Once you have your letter in hand, your realtor will begin scouring the areas you wish to live in order to find a home. However, once again you must let your realtor know what your top line is when it comes to monthly payments. If you cannot afford to pay over $970 per month, your realtor will be able to figure the cost of the home along with insurance, etc… to ensure your monthly payments will not exceed the price you have stated. You will also have to let your realtor know a few more things about the home you wish to buy such as how many bedrooms, if you have preferences to the number of bathrooms, square footage you desire, lot size, or whatever you desire.
Negotiating for you may be the most important aspect of purchasing a home. The realtor will be your mouthpiece and will fight on your side such as an attorney does in court for things like price, terms, financing, date of closing, and the inclusion or exclusion of repairs.
Before you sign the dotted line on the home contract you should listen to your realtor about the various inspections and evaluations that should be performed such as termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests. This is only a short list to give you an idea. Your realtor will know which inspections will need to be performed according to the location of the home you wish to purchase.
Last, but certainly not least, your realtor will be there during closing. He or she will ensure that every step of the way the process will be smooth and that you understand exactly what is going on during the entire procedure.
Instead of traveling down the road of home ownership on your own, take along a friend that will guide you and be at your side to ensure your success, a professional realtor.
If you are self employed you more than likely use a schedule C when you file your taxes to the IRS and doing so, you write off just as much as you can so you can keep your hard-earned dollars instead of paying the money to Uncle Sam in the way of taxes. This seems like a great idea unless you are searching for a lending company so you can purchase a home. Most lending companies need to see your tax returns in order to get you qualified for a loan. It does not matter how much money you actually make in a year what is known as your gross income, the only figure that is looked at is your net income or adjusted gross income. In many cases, this figure may be your downfall when it comes to buying a new home. Some of the items on your schedule C can be added back into your income however, the majority of the items cannot be added back in such as depreciation on your automobile.
Along with needing your tax return, many lenders need to see a terrific FICO score. With the market the way it is now, self employed individuals are being to see that it is even tougher trying to get a home loan. All of the stated income loans are gone, lenders are asking for high FICO scores such as 680 and higher, and of course you have to show proof of income with your tax returns. All of this can put a dapper on self-employed people of ever reaching their dreams of home ownership.
The good news is portfolio lenders are there to help. You may have to search to find one, but they are the light at the end of the tunnel for many. A portfolio loan is really a loan program that is outside the box of most underwriting guidelines that you see with conventional loans such as FHA, Freddie Mac, and Fannie Mae.
The reason portfolio loans are better for self-employed people are that they look at the person or persons requesting the loan such as not only their credit rating, but if they pay their bills on time and if they believe, the person is worth the risk. In many cases, portfolio lenders are a group of individuals instead of a large corporation. The interest rate they offer might be a bit more than what you would find with a Fannie Mae loan but 1% over Fannie Mae is not that bad when you cannot find another loan option. In most cases, with a portfolio loan, you will to have 10% down but 5% of the amount can come as a gift. You only need to have 5% in your bank at the time of putting a bid on your dream home.
If you are in this boat like several other self-employed individuals across America, it may be time to forget the normal avenues for home loans and look for a portfolio lender.
The Southern California Home Buyers Fair is only a few weeks away Saturday, April 12, and Sunday, April 13 don’t forget to mark your calendars!!!
In an effort to support REALTORS® and educate consumers about current opportunities in today’s challenging real estate market, C.A.R., in participation with the Los Angeles Times, will present the Southern California Home Buyer’s Fair for consumers Saturday, April 12, and Sunday, April 13 at the Los Angeles Convention Center in downtown Los Angeles.
The Southern California Home Buyer’s Fair will feature more than two dozen educational seminars presented in English and Spanish for consumers, designed to address many of the concerns of first-time home buyers and arm them with all of the practical information they need to know as they begin the road to homeownership. Seminar topics range from understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of the home inspection.
In addition, the exhibit hall will feature nearly 75 exhibit booths where consumers can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
For more information, visit www.homebuyersfair.com.
Admittance to the Southern California Home Buyer’s Fair is free, however, event coupons are available. Members may obtain coupons from their local association, or download and print for distribution to their clients directly by going to www.homebuyersfair.com/pdfs/SCHBFCoupon.pdf.
The National Association of Realtors published their Code of Ethics and Standards of Practice on January 1, 2008. This is an outline of the way in which real estate agents across America should work with buyers, owners, and the public in general, other realtors, and their obligation to Mother Earth.
The Preamble explains the overall big picture of the way in which each realtor should “recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.”
As real estate agents seek to help individuals and families find the perfect home, find buyers for their clients, and work alongside builders the preservation of the environment is or should be at the top of their list.
Not only does the Code of Ethics and Standards of Practice explain the obligation each realtor has for preserving the environment but it also is very specific on the duties to clients and customers that all real estate agents should adhere to.
In the very first portion of Article 1 under Duties of Clients and Customers, this state stands out. “When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve Realtors of their obligation to treat all parties honestly.”
So, what does this statement mean to the clients and customers?
Say you were looking at a home and you wanted to offer a bid that is quite a bid lower than the asking price. Let’s say around $40,000 to $50,000. Your agent could easily explain to you that your bid is low and suggest that you give a bid a bit higher. This would not only be in the best interest of the seller, but also for you as well. Realtors know the market, which gives them the edge they need to see how much a homeowner will take for their home. They look at such things as the real estate market in the area, what other homes have gone for in the area with the same amenities, how long the home has been on the market and many other aspects that the normal buyer may not realize. If you give a bid that is much lower than what the buyer will take, you will miss out on your dream home and another buyer will snatch it up.
Throughout the code of Ethics and Standards of Practice integrity and honestly are upheld. The bottom line is that each real estate agent must pledge they will follow this Practice by being truthful, by not misrepresenting, or concealing any facts of a property or transactions to all parties, and shall not deny equal services to any person for any reason such as race, religion, handicap, etc…
2008 Buyers are on the search for a deal and Sellers are trying to figure out what is a realistic price to list their house.
The 2008 Buyers are looking for roomy bright and well lit floor-plans. They are looking for large Masters with large spacious spacious closets with open and large Master Baths. The 2008 Buyer would also like to see the home updated with new paint, floor coverings and granite counter tops. However, the 2008 buyer does not mind making some updates to save a buck!
Mark Nash has conducted a study of what home buyers are looking for in Real Estate for 2008 across the country which is:
Bathrooms will need to be roomy with big tubs, espresso machines and wine coolers along with multiple flat screen TV’s. (I’m talking about in the bathroom)
Home buyers want pet showers, elevators and outdoor living spaces.
Eco-friendly homes are top on the list with solar and wind backups to conventional power.
Quality is IN no matter what the size and ceiling height between 9 and 11 feet. No more high ceilings that raise the heating and air cost.
No more upgrade costs with new builders. Buyers want the price to reflect the total cost and not be continually jabbed with additional costs.
Pocket Doors in the kitchen are what buyers want in order to conceal appliances
Floating Homes ( I think this is obviously for those wanting to live on the water).
Technology friendly homes that allow operation using hand-held devices are a must for the technology savvy home buyer.
This is What is OUT for Real Estate in 2008:
Unrealistic Home Sellers who do not have their houses show quality and priced properly.
Living Rooms are out since more home buyers want larger Family Rooms.
Mosaic tile is a thing of the past and too costly to remove for the home buyer.
Retro-1970’s chic is no longer appreciated by home buyers.
Empty “for sale” homes. If your home is not staged and empty, don’t expect the home buyer to buy it!
Double-digit home value appreciation is no longer.
The catch phrase is Hello Green design, goodbye minimalism
From Europe the trend is wood and cork along with warm colors, like watermelon and carrot orange. Kitchen are going fruit colored…lime, orange, yellow, kiwi and tangerine.
Colors like grey are considered sexy such as granite, putty and stone but should not be used in places where the light is harsh.
Furniture such as wicker or a bentwood chair will be combined with chrome. Old styles will be used with new materials.
Be watching for Asian influence in decor since the Olympics will be held in China this year. You will see bright reds, magenta’s, purples, pumpkin orange, peacock turquoise, jade greens and royal blues used as main colors and accent colors.
As you can see there are a lot of changes on the horizon and the future is bright for the 2008 San Diego Home Buyer! However, the 2008 San Diego Home Seller’s have to be realistic or they will be sitting there with their home still on the market in 2009!