Real Estate Information Archive

Is now the right time for you to buy a home? You have many options to consider and choices to make. Buying a home is a big responsibility, financially and emotionally, but, most people want to own a home. Homeownership often is referred to as "the American dream." Why is it so special? Among the reasons: Real estate often is an excellent investment, perhaps the number one source of wealth-building for families.

Owning a home has many benefits. When you make a mortgage payment, you are building equity - and that's an investment. Owning a home also qualifies you for tax benefits that may assist you in dealing with your new financial responsibilities - such as homeowners' insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are definitely worth it! Owning your own home also can be a great source of pride and stability.

But homeownership may not be for everyone. It's a big financial commitment - starting with the initial shock of your purchase (including a "down payment" and fees paid to a real estate agent, the lender and others) followed by years of monthly mortgage payments, real estate taxes, property insurance and maintenance costs. When you decide to purchase a home, you accept responsibility for paying for these expenses. They are additional costs to your monthly mortgage payment and should be included in your budget estimates: Property Taxes and Special Assessments, Home/Hazard Insurance, Utilities, Maintenance, Home Owner Association (HOA) Fee if applicable.

One of the advantages of renting is being generally free of most maintenance responsibilities and the flexibility of moving almost as soon as you decide. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for your housing needs.

There are many considerations in choosing between renting and buying:

• Do you want to spend several years in a house and in a neighborhood?
• Do you enjoy lawn and garden work?
• Might you need to move suddenly to care for family?
• Do you want to keep your assets accessible in the bank, or do you want to invest long-term in a home?

There are tax advantages to homeownership in both the short and long terms. The mortgage interest and real estate taxes are tax deductible, which allows you to subtract part of your housing-related expenses from your taxable income, which could reduce your tax bill. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

For an Orange County Market Update click "My newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

For the 22 business days ending May 15^th Laguna Niguel homes sales (Total of 89) were down 25.8% from the previous 4 week period in 2006.  However, the median sales price increased to $759,500 up18.3% from the same period in 2006.  The median price is where half the homes sold for more and half for less.

For an Orange County market update click "My Newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

 

 

Before You Buy
Inspect!

Buying a home is one of the most important purchases you will make in your lifetime, so you should be sure that the home you want to buy is in good condition. A home inspection is an evaluation of a home's condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will review the readily accessible exposed portions of the structure of the home, including the roof, attic, walls, ceilings, floors, windows, doors, basement and foundation, as well as the heating/air conditioning systems, interior plumbing, and electrical systems for potential problems. Home inspections are not intended to point out every small problem or any latent defect in a home. Most minor or cosmetic flaws, for example, should be apparent to the buyer without the aid of a professional.

During the Home Inspection

While not necessary, it is recommended that the buyer be present for the inspection. This allows the buyer to observe the inspector, ask questions directly, and obtain a better understanding of the condition of the home, how its systems work, and how to maintain it. The written report may be easier to understand if the buyer was present during the inspection. It is important that safe access and sufficient lighting is provided so that the inspector can inspect the property.

At the conclusion of the home inspection, the buyer should be well informed of the condition of the home. It should be known if there are visible, apparent problems, if repairs need to be made, or whether or not there are any risks of concealed damage, and whether further investigation is recommended and/or required. After the inspection is complete, you will receive a written report of the findings, usually within five to seven days.

Spending Hundreds May Save You Thousands

When you make a written offer on a home, you should insist that the contract state that the offer is contingent on a home inspection conducted by a qualified inspector. You will have to pay for the inspection yourself, but it could keep you from buying a house that will cost you far more in repairs down the road. If you are satisfied with the results of the inspection, then your offer can proceed.

It should be clearly understood that a home inspection is not to be confused with an appraisal, a building code inspection, a guarantee of any kind, and/or an insurance policy on the condition of the property.

Selecting a Home Inspector

As the homebuyer, it is your responsibility to carefully select a qualified inspector and pay for the inspection. The following sources may help you find a home inspector:

• State regulatory authorities. Some states require licensing of home inspectors.
• Professional organizations. Professional organizations may require home inspectors to pass tests and meet minimum qualifications before becoming a member.
• The Internet or phone book. Search under "Building Inspection Service" or "Home Inspection Service."
• Your real estate agent. Most real estate professionals have a list of home inspectors they recommend.

  

For an Orange County market update click "My newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

Like most Americans, your home is probably your single largest investment. While the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth.

First, you need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.     

In other words, it's best to keep changes simple.

Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Things That Even You Can Do!

Outside:

• Sweep all walkways and sidewalks.
• Remove newspapers, bikes and toys.
• Park extra cars away from the property.
• Trim back the shrubs.
• Clean windows and window coverings.
• Keep pet areas clean.
• Make sure roof and gutters are in good condition.
• Mow the lawn more frequently and plant flowers.

Inside:

• Kitchen and bathroom should shine.
• Put dishes away.
• Clean and/or vacuum carpets and rugs.
• Place fresh flowers in the main rooms.
• Make beds and put all clothes away.
• Open drapes and turn on lights for a brighter feel.
• Straighten closets.

For an Orange County market update click "My newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

For many Americans “coming up” with a down payment for their first home purchase can be a major roadblock – and quite often the reason for renting, rather than owning. A down-payment is the difference between the home’s purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements.

 

Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid or a borrowed amount secured by assets.

 

While conventional loan down-payments may be close to 20% of the sale price, government loans typically have lower down-payments requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down-payments that are less than 20% of the sale price typically require mortgage insurance payments.

Click  "My newsletter" to read more about the latest on the Orange County real estate market.  

"It's a great day to buying and selling a home in Orange County!"  Zen

Your FICO scores are affecting you more and more everyday.  From purchasing a home, buying a car, insurance and finding your dream job.  Yes, I said even finding your dream job!  Employers check your credit and it could be the difference of you getting your dream job.  Add to all of the identity theft that is going on today it is critical that you keep an eye on your credit.

It is really important that you monitor your credit report several times a year.  I recommend checking it monthly or a minimum of once every 3 months.  I recommend services like www.truecredit.com or www.myfico.com as good websites to check your credit scores.  You can also subscribe to their services that allows you unlimited monitoring of your credit report and scores.  You should make sure you check all 3 credit scores to keep your credit safe!  Checking one bureau is not enough. 

Don't miss out on your Dream Home or Job!  I've helped many people get their credit scores up so they can purchase their Dream Home or to help them get a better interest rate.  I'd be happy to discuss or email you more credit tips.  Please feel free to contact me for more information by calling me at 888-877-6062, or by clicking here and sending me a message.

Click  "My newsletter" to read more about the latest on the Orange County real estate market.  

"It's a great day to buying and selling a home in Orange County!"  Zen

Selling a home is a less taxing prospect since the 1997 tax law changes – literally. If you’re married, you can exclude up to $500,000 of the profit from the sale. If you’re single, you can exclude up to $250,000.

 

Qualifying is simple: you must have owned and lived in the house for two out of five years before the sale. And this is not a one time exclusion: you can use this exclusion every time you sill a house, as ling as you haven’t sold another house in the last two years. If you’re married, you have to meet additional requirements to take the $500,000 exclusion:

 

You must file a joint return

 

You or your spouse, or both must own the house

 

You and your spouse must have lived in the house

 

(There are also exceptions where you may be able to take the exclusion if you don’t meet the ownership and use tests and you may be able to take a partial exclusion even if you can’t take the whole exclusion.)  For more information visit the IRS web site at: www.irs.gov/publications/p523/index.html

For an Orange County Market Update click "My newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

Home Prices may be flat to down in 2007 but one thing for sure is that rental rates continue to rise in Orange County and across the U.S.  While USA Today has stated that they expect rents to rise 5% across the Nation, Orange County and Southern California is seeing increases of 6% -10%.  The Irvine company in Orange County is raising most of its rents 7% - 10%. 

Why are rents increasing so much? 

1)  High home prices has increased the demand for rental properties. 

2)  The hundreds of condo conversions throughout Southern California has decreased the amount of rental homes. 

3) A Strong economy and the fact that more people are moving to Southern California then leaving. 

4) The demand of people wanting to live in Orange County continues to be strong.  Irvine was the 3rd fastest growing city in California for cities under $300,000.

For an Orange County market update click "My Newsletter" to read the latest.  Please contact me for more info about rents, purchasing you own personal residence or investment properties.  888-877-6062. 

Spring is here, and unfortunately home sales are not growing quite as quick as the new blooms. In fact, they are growing in the exact opposite direction-down %25.5 from last year. And what news for the rest of troubled 07'? The same sluggish pace according to some experts and Realtors. In fact, home prices are predicted to be even lower by the end of the year.

March has become the 18th strait month of home sale declination with just  3,130 sales recorded according to DataQuick, making it the slowest since 1995.  Click  "My Newsletter" to read more about this topic and the Orange County Market.