5 Great Tips for Home Buyers

1.  Get Your Credit in Shape  

If you plan to finance your home purchase, check your credit history, especially if you're a first-time buyer.  That way, you can correct any errors, and take measures to boost your credit score.  Order one free credit report a year from Annualcreditreport.com

 

2.  Get Pre-approved For a Mortgage 

Early in your search, meet with a mortgage lender who will take a look at your credit history, your savings and investment statements and your current financial situation.  This will give you a better picture of what you can afford and the financing options available.

 

3.  Establish your Budget

Whether you're financing your purchase of paying cash, it helps to establish a budget.  This will help you focus your search on great homes within your price range.  

 

4.  Make a List

Buying a home is a process of elimination, not a process of selection.  Make a list of your ideal home's must haves and deal breakers.  This will help you to narrow your search so that you can find a home that fits your current and future needs.

 

5.  Think About Resale

 The average homeowner lives in their home for nine years. While you may purchase your home as a long-term investment, keep in mind that you may need to sell it one day.  Consider the home resale value when you're looking at properties.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. at Nancy Puder &Associates. If you have any questions or concerns regarding your own property or a home purchase, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com. Our highly skilled team of agents is always ready to help you with any of your real estate needs, no matter how big or how small.

 

Go to Facebook.com/Nancy Puder Realtor and "like" her page to access weekly real estate related articles.

 

 

 

 

 

Rents Are Sky-Rocketing

Since the recession many past or potential homeowners have chosen to rent a home rather than buy.  Because of this scenario, there has been an increased demand for rental homes, creating a shortage of homes available, and as a result, rental rates have sky-rocketed.

 

Some of the reasons people have been choosing to rent rather than buy a home include insecurity about job, the loss of a job, damaged credit, short sale, foreclosure or loss of equity.  Another reason has been an overall loss of confidence in the real estate market.

 

During and immediately after the recession it made sense for some people to rent a home until they could get back on their feet.  With the recent improvement in the overall economy, however, the decision to rent vs. buy should be re-evaluated, and probably be done soon.

 

Several housing studies conducted this year, reinforce the fact that owning a home is still less expensive than renting.  According to Trulia's 2014 Renting vs.Buy Report, this was the case nationally and in each of the 100 metro areas.  Assuming a 30-year fixed mortgage rate of 4.5 percent, buying is 38% cheaper, nationally than renting. These numbers vary according to region.

 

Renters who might mistakenly think that homeownership is out of reach, would benefit from speaking to a real estate professional to get the real facts about where the market is right now and how to begin the process of home ownership. It may be a good idea to ask yourself "why pay someone else's mortgage when you can own your own home?"

 

Take the first step and speak to someone who is knowledgable and interested enough in you to help get you on the right track if you are not ready to buy today.  It is not as hard as you may think it is to buy.  With focus and determination and someone to help guide you along the best path, you would be surprised at what can be accomplished in a relatively short period of time.  Believe me when I tell you that the road to buying will be much shorter with a plan in place.

 

If you are ready to get out of the rental market and become a homeowner, call me at (805)710-2415 or email me Nancy@NancyPuder.com to discuss the benefits of homeownership and to get the facts on today's real estate market.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

Why Now Is A Great Time To Sell

 

A lot has changed in the real estate market over the past several years.  If you are like a lot of other homeowners, you may have postponed the idea of selling your home for various reasons.  Here are some questions to ask yourself if you are thinking of selling.

 

• Has your family situation changed or will it in the near future?

• Do you want to move closer to family and friends?

• Does the area where you live no longer suit your needs?

• Does your home no longer meet your space requirements?

 

• Do you foresee a job relocation?

 

• Do you just want a change?

If you answered yes to any of these questions, now may be an excellent time for you to sell your home.

 

Existing home sales have risen 20% since 2011.  Factors contributing to this rise are increased job growth, lower interest rates on mortgages and small inventory.  It's interesting to note that, historically, the average homeowner stayed in their home for 5 years. Recent statistics show that the average stay in one home has risen to 9 years.

 

Before making the decision to put your home on the market, be sure to speak to a local real estate professional who is actively selling homes and can show you a track record of success.

 

Nancy Puder is a Real Estate Broker in Arroyo Grande, CA at Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

5 Tips for Sellers

Here are 5 tips for sellers whether you are selling now or in the near future.

 

1.  Clear the Clutter - Before you put your home non the market, clear the clutter that has accumulated over the years.  Tackle one room at a time and divide your items into 3 piles.  One to keep, one to donate and one to toss!  

 

2.  Get Packing - Of course you don't want to pack everything but it helps to start boxing up the items that you want to keep but won't use for awhile, like seasonal clothing or sports equipment. Some personal items make your home feel cozy and like an actual home, however, a little goes a long way with a future buyer.  Pack most of your sentimental and valuable items away so that the buyer can emotionally picture themselves living in your home.

 

3.  Do Your Research - Have an active and experienced agent research your neighborhood so that you know what homes are selling and also to get an estimated time frame on how long it will take to sell your home.

 

4.  Repairs and Improvements - Curb appeal is always very important.  Do minor repairs and improvements inside and outside your home.  Tackle necessary repairs, paint your walls a neutral color and replace light fixtures that are damaged or out of date.  Don't forget to clean as you go.  It's much easier to enjoy the view if the windows are clean!

 

5. Be Realistic - A seller who is realistic about the selling process, experiences much less stress when selling their home.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

Buyer's Confidence Up But Not Enough

 

While buyer confidence has increased significantly during the recovery and caused home prices to significantly swing upward, we are not yet back to "normal" levels in the housing industry.   Granted, the real estate market, in general, has been brisk and there has been renewed hope and a lot of excitement.   Then things slowed down and perhaps you are wondering why.  

 

According to Fannie Mae's June 2014 National House Survey, consumer confidence in the housing market has increased significantly, but it is still not enough to bring the market back up to "normal" housing levels.

 

Chief economist and SVP of Fannie Mae commented this month that "the uptick in the share of consumers expecting mortgage rates to go up (55 percent) and the accompanying decline in home price expectations (the average 12-month home price change expectation fell to 2.4 percent) reflect the pause in activity in the housing market so far this year."

 

Before making any real estate decision, it is more important than ever to consult a local Realtor who is up to date on what is going on in your market.  If you have any questions concerning your own real estate needs, call or email me anytime.  I always enjoy hearing from you!

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

 

Negotiating the Sales Contract

 

Q. My husband and I made an offer on a house which we really like.  We were wondering, though, if we find another house that we like better, during the escrow period, can we cancel the contract?  My husband says that we can but it doesn't feel right to me.

 

A.  Buyers should understand that when an offer is made and accepted by all parties involved, that it is a contract and everyone involved is expected, whether legally or morally, to act in good faith. A well-written sales agreement will allow contingencies for the buyer to get a loan, have time to investigate the condition of the property or the area they are buying in and for the home to be formally appraised at the purchase price.  These are the most common contingencies, however, other issues can be agreed upon also.  

 

A well-written sales contract will have a specific time period written in that the buyer must adhere to. At the end of the time period, the buyer is required to remove their contingencies or cancel the contract, based upon their inability to obtain satisfaction  in the area of investigation, obtain the loan or if the property appraises lower than the contract price.  In most cases, if this occurs, negotiations are re-opened, buyer and seller come to an agreement and the property then moves to a successful closing.  This is the way most transaction go and is a fair way to do business.

 

At the time of submitting the offer, buyers should be fully committed, barring unforeseen circumstances.  From a legal standpoint, buyers need to understand that what they are signing is a legally binding contract. Your agent may tell you that there are ways they can get you out of a contract, but buyers should consider how their attitude when entering the contract and the decisions they make are affecting everyone.

 

Often, the buyer and seller do not actually meet during the escrow period for a couple of reasons.  Keeping the distance between the buyer and the seller allows the agent to objectively negotiate the needs of both parties.  This widely accepted process minimizes the emotional effect that many buyers and sellers experience during negotiation and escrow.   Another reason is that nowadays, so much business is conducted with the use of technology, there is no need to meet in person. Sometimes even the buyer and seller agent don't meet face-to-face during the entire escrow period.

 

Perhaps because of these reasons, buyers are becoming desensitized to the effect that "changing their mind" will have on a seller and their family.  Imagine receiving an acceptable offer which is due to close escrow in 30-45 days.  The loan is going well, the appraisal has come in (or at least everyone is confident it will come in at the right price) and the buyer is happy with their investigations.  You, the seller, have finally found another home to either buy or rent, made arrangements for a truck to help move the family in 2-3 weeks,  arranged for the kids' schooling, spoken to utility companies, the list goes on and on.  Then the buyer simply withdraws their offer at the end of their contingency period because they have found another home that they have decided they like better or just decided to wait.  How would you feel?  Now your life has been turned upside down and you need to start over. 

 

During the recession, making offers randomly and then backing out was a common occurrence. Many buyers felt no moral obligation because they weren't really dealing with "people" but just the banks through foreclosures and short sales.  Now the recession is over and most sales these days are regular saleswith regular people.   

 

Naturally, there will be some real circumstances where a buyer needs to withdraw an offer and this article is not intended for those situations.  My intention in writing this it is to simply encourage buyers to have the right attitude and level of commitment BEFORE signing the offer.  Remember the Golden Rule. Do unto others as you would have them do unto you!

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

Cash is King...Not Always

 

Most of us have heard the statement "cash is king", when referring to a real estate purchase.  Listed below are the advantages of paying all cash to purchase a home. Be sure to read further, though, to see why this may not always be the case.

 

• The seller may reduce the price for those who pay in full up front.

 

• All-cash purchases streamline the home-buying process: No loans means less paperwork and no delays for mortgage approval.

 

• Cash buyers can save money on closing costs, bank appraisals, mortgage applications and fees, title insurance, and so on.

 

• Cash purchases eliminate the risk of loan denial.

 

• Cash buyers pay much less for their homes in the long run: No loans means no interest.

 

• Cash buyers never have to worry about losing their homes because they can’t afford to repay their mortgage loans.

 

• Cash buyers gain full, immediate equity in their home.

 

• Financially and emotionally, paying with cash benefits the home buyer.

 

• Sellers often show preference to cash buyers

Home sellers generally prefer quick, smooth sales. They know that even buyers who have been pre-approved for mortgages might be denied by the lender later on. Sellers are often willing to reduce the house’s price for cash buyers.

 

•  Cash purchases avoid the risk of low appraisals

 

 

 

Home appraisals are notoriously fickle. Lenders determine a home’s worth by weighing it against comparable sales — other homes in the neighborhood that may have sold at low prices for unknown reasons. A low appraisal could lead the lender to reduce the amount of the loan offer, even after seller and buyer have agreed on a price. If the loan amount comes up short, the buyer often cannot afford to buy the home. All-cash buyers sidestep mortgage applications, avoiding the need for a potentially deal-breaking home appraisal.

Cash is a powerful tool when buying real estate, however, cash buyers should know that making an all cash offer does not guarantee it will be accepted or that the seller will work with you.



One reason that an all cash offer would be rejected in favor of a financed offer would be if the seller receives a cash offer that is significantly lower than the asking price, the seller will often choose a higher offer even though it involves financing in this case.  Many homeowners need every dollar that they will net from the sale of the home and if they feel that the difference between the cash offer and the financed offer is worth the risk, they will often go with the financed offer.



Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.