Buying a Home Compared to Renting

Owning a home still has more appeal than renting for Americans, according to Fannie Mae. A sign of stability, safety, family and community, home ownership is an essential component of the “American Dream” of success and happiness and has been for many generations. The recent National Housing Survey (Q4, 2011) conducted by Fannie Mae found that this is still true.

The majority of those surveyed (at all education and demographic levels) still believe that owning a home is preferable to renting. The study, conducted from over 3,000 interviews, also showed that 64% of the renters surveyed planned on a future home purchase. Most of the survey participants listed high-ranking schools and safety as prime concerns when considering the location of that future home.

About 34% of those interviewed felt that “now” is a very good time to buy a home, but only 5% felt it was very likely that they would be purchasing a home in the next 12 months. The majority of survey participants (53%) felt that the housing market was likely to stay the same in the next year, but nearly all realized that the possibility of rental prices decreasing was unlikely. In fact many of those surveyed recognized the possibility of rental prices increasing, with 43% believing rents would increase and 47% believing they would stay the same. The majority of the respondents listed income, amount of down payment or job security as the largest obstacle to home ownership.
Click here to review the entire survey.

San Diego Statistics Compare Buying a Home to Renting

Great article from one of San Diego’s best mortgage brokers:

“Take note of this figure.  In many San Diego sub-markets, (mostly the beach cities), housing prices will never reach parity with today’s rents.  Like the La Jolla example, inlaftion may cure that in 2-3 years.  Still, some San Diego County markets have already reached parity meaning, it’s cheaper to own rather than rent.  Even in some beach cities, like Oceanside or Imperial Beach.

I searched active Oceanside homes for sale and found one which is listed for $189,000.  With about $7,000 down payment,  and an FHA loan with a 4.88% APR, the monthly mortgage payment would be $1250, some $50-$100 below what it might fetch in rent.  That’s one of many Oceanside properties which are at or below parity for the rent V own model.”

Go ahead and let us know if you’d like more information.

Realtor Don Reedy

I’ve been doing real estate for a long time, helping people buy homes, helping sellers value, list and sell their homes, and in the end it’s almost always about the money….the final decision, that is.  More than one person has hung their head and wondered if they had it to do over again if they’d do it the same way.

Don't worry - Ask your real estate questions

 You Have to Work with a Great Mortgage Lender…Period

Great mortgage lenders are the lynch-pin of a successful real estate transaction.  That’s mostly always been true, but now working with a professional, trustworthy, competent and caring mortgage lender is more important than ever.  Let me explain why.

• “It ain’t over till it’s over.”  (Yogi Berra).  Although everything else in a real estate transaction has been ironed out, only when the seller receives the money and the deed has been recorded is the deal consummated.  It really is never over until it’s over.
• The mortgage lender is NOT a party to the contract.  Yep, they don’t owe you any contractual duties to do the right thing.  Sure, they have rules they need to follow with regard to good faith estimates, etc., but if they don’t perform, neither the buyer or seller has a hammer to use against them.
• Mortgage lenders have a harder job now thanks to the rules Congress passed in an attempt to make the industry more transparent.  Instead of transparency (seeing clearly what is being done), there are rules so foolhardy that it’s now hazy out over every transaction that’s taking place in America.
• You need someone who really knows the product they are selling.  Mortgage lenders “sell” their products, FHA loans, VA loans, 203b loans, etc., to you the buyer.  They have to know the appraisal rules, underwriting rules, time constraints and pitfalls of each and every one of these they say they are going to help you with.  Believe me, knowledge and understanding is power.  Everything else is disaster waiting to happen.

 Meet a Great San Diego Lender

Brian Brady

Brian and Debra Brady have been lending to veterans since 1996.  They work with World Wide Credit Corporation and offer loans up to $3,000,000.  Brian has published articles for national real estate sites HomeGain, Zillow, BloodhoundBlog, and ActiveRain.  He invites you to get educated abiout the mortgage process at his nationally-known website Mortgage Rates Report.

I’ve known Brian for many years now, and he’s simply one of the best professional loan officers anywhere.  He’s articulate and well known for being a community leader as well as for his lending skills.  Don’t hesitate to call him.  This whole article is about how important your loan really is, and I want to repeat that your lender is at the top of the list in terms of determining how successful your home purchase will be.

By Don Reedy

Bank owned homes, usually foreclosures, are also called REO’s.  REO is a term that actually means “real estate owned”, and is an old term the banks have used for years to describe the homes they have taken back in foreclosure.  In the past this term was used by a very small segment of the real estate world, but as we all know now, has become (along with short sales) at least 50% of the homes now sold in the United States.  Below is a short (and we think funny) video that highlights some of the things you should know about purchasing a REO or bank owned home.

Click here to view the embedded video.

We have written about Bank Owned homes for sale in the past, and now a quick update on what’s happening in the REO home sales world right now.

Now over 50% of all the home sales in San Diego and North County San Diego are either REO or short sales.  As the home market deteriorated, banks confessed their wrongdoings, and people scrambled to somehow avoid a huge loss of equity, the market began to sink, stabilized, and has now come to rest on a Greek island with the water being pumped out just about as quickly as it leaks in.

The biggest difference from two years ago is that the banks have developed and staffed for the number of homes that they have taken back in foreclosure, and now they mostly list with certain real estate companies that know how the bank operates and what they will do to complete a sale of any of their homes.  With that experience and staffing, REO or bank owned homes are now much easier to buy if you work with an experienced short sale and REO real estate agent.  As the video above explained in brief, you still have to pay attention to what you should expect in terms of risk or lack of disclosures with bank owned homes, but with good guidance these homes are often priced at the lowest end of the market in just about any area of San Diego.

If you want to look at REO, bank owned or short sale homes, just click above on “I would like to see homes that are….“, and once you’ve picked an area, just go ahead and register.  Once you’ve done that you’ll be able to select ONLY REO homes to search for, and I think you’ll find this a great tool to learn about bank owned/REO homes that may be of interest to you.
By Don Reedy
 

Buying a Home in the San Diego Housing Market

The last five weeks have brought mortgage rates to historic lows according to Freddie Mac, with many averaging below 4%. That means more buying and bargaining power for you, the home buyer. In fact, according to last Thursday’s Primary Mortgage Market survey by Freddie Mac, the average rate for a 15 year mortgage was 3.16% with fees and points averaging .8 and the average rate for a 30 year mortgage was 3.89% with fees and points of .7.

Keeping those stats in mind, it’s always wise to do your homework and ask your lender (contact David Talbot at Samuel Scott Financial Group if you’re looking for assistance)  for a list of current rates and determine if those are lowest for that day or week and if the rate is fixed or adjustable, as that answer will affect your payment significantly. Keep in mind that the APR (annual percentage rate) considers all fees, including points and other charges such as origination, underwriting, or closing costs fees, so it may be advantageous to use in comparisons. In a constantly evolving real estate market, it’s always wise to educate yourself and shop around, listen up, and be ready to make the best deal you can on your home purchase and your lending costs.

Save Money When Buying One of These Homes in San Diego

Showing properties 1 - 10 of 500+. See more city of San Diego real estate.
(all data current as of 5/22/2012)

1. $2,295,000 : 5118 Meadows Del Mar, San Diego
   
   5 beds, 3 full, 1 part baths

   Home size: 4,598 sq ft

   Year built: 2001

   Parking spots: 9

   Days on market: 1
2. $1,050,000 : 1331 Willow St, San Diego
   
   3 beds, 3 full, 1 part baths

   Home size: 2,264 sq ft

   Lot size: 5,000 sqft

   Year built: 1937

   Parking spots: 4

   Days on market: 1
3. $1,183,600 : 4856 Fairport Wy, San Diego
   
   4 beds, 4 full, 1 part baths

   Home size: 3,547 sq ft

   Lot size: 6,180 sqft

   Year built: 2001

   Parking spots: 5

   Days on market: 1
4. $769,900 : 3634 Yosemite St, San Diego
   
   4 beds, 3 full baths

   Home size: 1,812 sq ft

   Lot size: 5,300 sqft

   Year built: 1958

   Days on market: 1
5. $639,000 : 2633 HARTFORD St, San Diego
   
   3 beds, 2 full baths

   Home size: 1,650 sq ft

   Lot size: 3,400 sqft

   Year built: 1968

   Parking spots: 4

   Days on market: 1
6. $549,900 : 6354 Lake Lucerne Dr, San Diego
   
   4 beds, 3 full baths

   Home size: 2,187 sq ft

   Lot size: 8,300 sqft

   Year built: 1967

   Parking spots: 4

   Days on market: 1
7. $634,000 : 10802 LOIRE AVE, San Diego
   
   3 beds, 2 full baths

   Home size: 2,015 sq ft

   Lot size: 8,700 sqft

   Year built: 1977

   Days on market: 1
8. $625,000 : 3443 Ray St, San Diego
   
   3 beds, 2 full baths

   Home size: 1,500 sq ft

   Lot size: 3,750 sqft

   Year built: 1924

   Parking spots: 2

   Days on market: 1
9. $410,000 : 10893 Creekbridge Pl, San Diego
   
   3 beds, 2 full, 1 part baths

   Home size: 1,425 sq ft

   Year built: 1992

   Parking spots: 2

   Days on market: 1
10. $399,500 : 1494 Union St 709, San Diego
    
    1 bed, 1 full bath

    Home size: 903 sq ft

    Year built: 2007

    Parking spots: 1

    Days on market: 1

Listing information deemed reliable but not guaranteed. Read full disclaimer.

During the process of purchasing a home the home buyer will have a physical inspection of the home and property, and then make a Request for Repairs to the home seller.  In this article I wrote about the benefits of doing a good home inspection I pointed out that this inspection can benefit both the buyer and seller, and that understanding how to use the Request for Repairs work to your advantage is simply a matter of understanding the way the home inspection is intended to work.

California Purchase Agreement – Request for Repairs (Buyer requesting repairs from Seller)

• Above is the current standard form used by Realtors representing a home buyer.  Let’s first review how the form is filled out, and why, and then discuss how both the home buyer and home seller can benefit by understanding how this form is generally used to help negotiate one of the most important parts of a home purchase.

 The Request for Repairs

• The top of the Request for Repairs is used to describe the purchase contract and property address, as well as who the buyer and seller are.
• Section 1 is the BUYER’S REQUEST section.  In this section the buyer will provide a list of the repairs he/she wants the seller to make.  The buyer may also (Section 1(A)2, ask for money in lieu of the repairs.
• In Section 1(B) the Buyer provides the Seller with the inspection report and any other documents they feel would be helpful in having the seller understand what repairs are needed, and why..
• In Section 2 the Seller (after having reviewed the Request for Repairs by the Buyer) responds with either an acceptance of the Buyer’s requests, a partial acceptance, a modification of the cash they are willing to pay, or a rejection of the Buyer’s request.
• In Section 3 (if the Seller has countered the Buyer’s request), the buyer has a last opportunity to agree or disagree with the seller.

Time frames for the Request for Repairs

Once the purchase agreement is signed by both the home seller and the home buyer, the “clock” begins to run on various time frames.  During the course of a typical real estate purchase agreement the buyer will typically have a certain number of days to get loan approvals, examine HOA documents and disclosures, and of course to do inspections of the property.  In California the time frame under which the buyer generally operates is 17 days.  That is, from the time the purchase agreement is signed until the seller wants the buyer to move forward (remove contingencies), is generally 17 days.  (Note:  If the seller is a bank – REO sale – then the time frame often is reduced to 10 days to remove the inspection contingencies.)

What Requests for Repairs Are Reasonable?  {For the Buyer}

That’s right.  They key word here is REASONABLE.  Let’s start with some basics, any of which you are free to disagree with by the way.  Remember, these are my ideas, based on my experience with sellers and buyers, and not necessarily yours if you’re sitting in the home buyer’s seat.

Homes have problems.  All of them.  Even brand new homes have issues.  While they may not have cracked slabs or rotting decks, most will have flaws in some part of the home.  If you’re buying a resale home, which most of us do, then the problems are going to be a lot more extensive.  But the question is, what’s a problem?  Or more specifically, what problems are reasonable for you to ask the seller to repair?

In my experience the buyer gains in this transaction by walking in the shoes of the seller, perhaps more than in any other area of the purchase.  Do you have some rooms painted 10 years ago?  Are your wood floors scratched in some places by your dogs?  Are your bathrooms outdated?  Well…..perhaps they are, and you’re still quite happy to live with those small issues in your daily life.  These, my friends, are not usually items that you’re going to ask the seller to repair.  You saw the home, and when you made your offer you factored in the fact that the floor might have to be replaced, or the sinks changed out.  You probably want to repaint, and you’re most certainly going to want to redecorate.  So just because the inspector noted that there were scratches or tears, or perhaps some molding pulled away, you’re not going to win any points by trying to point them out to the seller.

Instead, focus on real issues…issues that your home inspection uncovered that will make living in your new home either unsafe or unhealthy.  That’s where your power lies, and where you can maximize the request for repairs to your benefit.  Here are some examples:

• You uncover a leak, or apparent damage from a leak, and the seller did not disclose that to you.  No one likes the word mold, and although in my experience mold is found in very few inspections, unrepaired water damage can be a danger should mold develop, and this is an area where the seller will almost always cooperate.
• You find that electrical wiring has been run in a manner that’s not to code.  Again, this is a safety issue, and the seller should cooperate to repair.
• You see that the decking is damaged from either water or perhaps termites.  I’ll give you a primer on termites in another article, but usually damage that may result in falls or other safety issues will need to be repaired by the seller.  (Banks often want you to buy “as-is”, so if they refuse to make these repairs make sure you consult with your Realtor and other repair specialists to discover the true cost of making those repairs.
• The home has no Ground Fault Circuit Interrupters (GFCI) plugs.  These protect you and your family from shock and other electrical damage including the potential for fire, and should always be addressed and repaired or paid for by the seller.

So what about all the other repairs you see that need done?  My suggestion is that you be “reasonable.”  If you really want something done, ask.  But if you understand that the issue is normal “wear and tear” then temper your request so that you get the seller on your side.  If there are a lot of issues that you uncovered during your inspection, perhaps asking the seller to compromise by paying you at close of escrow, and you’ll do the repairs yourself.

What Requests for Repairs Are Reasonable?  {For the Seller}

“It’s the economy, stupid.”  Yep, like all things that are obvious, agreeing to pay for repairs for the buyer is mostly about two things; money and pride.

Your Realtor should have discussed the Request for Repairs with your at the time you listed your home.  No matter how nice your home is the chances are that some maintenance is overdo.  Think of this as simply one of the factors in pricing your home for sale.  If you do a good inventory of the state of your home before you begin marketing it, then when the buyer requests repairs you’ll be prepared for most of his or her objections.

Next, and just as important as factoring in the cost, is your pride.  This isn’t just a house you’re selling, is it?  No, it’s your home, the place you lived in, painted, decorated, maintained, improved and loved.  An inspection and request for repairs can seem like a slap in the face if you’re emotional about the above.  Don’t be.  Again, try to remember how you felt when you purchased your home.  Walk in the buyer’s shoes.  Be reasonable.

]]> http://sandiegoequityfacts.com/requesting-repairs-from-the-seller/feed/ 0 http://sandiegoequityfacts.com/home-inspections-your-best-friend/ http://sandiegoequityfacts.com/home-inspections-your-best-friend/#comments Thu, 08 Dec 2011 21:03:01 +0000 Don Reedy http://sandiegoequityfacts.flatratewebjobs.com/?p=108 Read More »]]> Home Inspections in San Diego

While you are in the process of buying your San Diego area home, one of the most important items you’ll have to understand and work with is the Home Inspection.  After all, your home is going to be an investment as well as your “castle”, and you’ll want to know as much about the home’s condition as possible before making the decision to move forward with the purchase.

Click here to view the embedded video.

Yes, I realize we don’t have snow here, so if you’re tired of the snow remember that San Diego homes are among the world’s finest…in the most beautiful place on the planet.

Why Do A Home Inspection?

A home inspection is primarily for YOUR PROTECTION.  All through the home buying process the buyer is given numerous opportunities to inspect the home, the grounds, the surrounding area, schools, parks, etc.  Most homes (no really ALL homes) have defects.  These defects range from the smallest scratches or torn screens up to damaged plumbing, rotting wood, electrical problems, and possibly even radon or mold problems.  Even new homes have defects.  It’s up to the inspector to find every single defect and bring that information to your attention.  So the home inspection acts as a buffer between what you know, the seller knows, the seller has told you, and what really is happening today with the home you are about to buy.

Home Inspections Aren’t Just for Buyers – Seller’s Benefit As Well

Although the buyer initiates the inspection, paying his inspector out of his own funds for the service and the report, the seller also benefits.  Here are some of the benefits of a home inspection for both the buyer and the seller:

• Buyer – Detect major issues with the home BEFORE committing to purchase.
• Buyer – Ask for repairs on items of most concern (both safety and financial).
• Buyer – Talk with a professional (hopefully CREA) credentialed inspector in depth about the home and potential cost for repairs.
• Buyer – Build a solid foundation with your Realtor about the issues most concerning to you, and allow the Realtor to offer advice as to generally accepted repairs the buyer might expect the seller to make.
• Seller – Since most sellers are not electrical, plumbing, building or safety issues, the inspection will bring forward any potential areas in their home that affect the value and marketability.
• Seller – In California the seller has the duty to disclose, disclose, disclose.  The inspection report eliminates some of the worry about later being blamed for not disclosing something the seller might never have known about if not for the inspection.
• Seller – When or if the buyer asks for repairs or money in lieu of repairs, a third party report from the inspector acts as a tempering rod so that both buyer and seller can negotiate with the facts….not feelings.

Details of  a Home Inspection Report

Your Realtor will likely recommend and insist that you have a home inspection.  He or she will also provide some companies or individuals who perform home inspection services, and you can choose to work with one of these, or someone that you know and trust.  { I continue to recommend Glen Schwartz and Associates, Tim Rohrbeck of Royal Inspection Services , and Steve Roseberry of Safe Keeping Home Inspections. } The home inspection is one of the few items that is paid for directly by the buyer, and out of escrow.   This means that whatever the appraiser charges will be due and payable by the buyer on the day that the inspection is done.  This fee is not refundable for any reason, and if the buyer decides at some point not to move forward with the purchase, the buyer will have born the cost of the home inspection report.  Fees in San Diego run between $300 to $600 for most homes.

The home inspection itself usually takes 2-4 hours.  During the inspection the buyer and his real estate agent are usually present.  Good inspectors not only check and report, but they can educate the buyer on the location of valves, shutoffs, electrical panels, sprinkler heads, clean-outs, etc.  This information is invaluable to the new buyer.

During the home inspection the inspector can point out significant issues, and also point out issues that are common and probably not of great concern.  Since buyers have varied degrees of expertise in this area, this session with a good home inspector is often some of the most helpful in determining if the home is suitable for the buyer.  As I indicate above, select the best home inspector you can.  Choosing a friend or even a General Contractor who doesn’t regularly do home inspections can be a disaster.

After the home inspection is completed, a copy of the inspection will be reviewed by the buyer and the real estate agent.  If the buyer decides there are repairs that he or she thinks should be made by the seller, then a Request for Repairs will be made asking the seller to either make those repairs or pay a certain amount of money instead of making those repairs.  It is important that the buyer rely on the Realtor’s experience and advice when making requests, but ultimately the decision is up to the buyer.

What happens after the Home Inspection?

With the home inspection in hand, a meeting will take place between the buyer and his Realtor.  During this meeting the findings made by the home inspector will be noted, discussed, and then those items that the buyer wants the seller to repair or pay for will be documented in the Request For Repairs.  The Request for Repairs is a California real estate document that puts into writing what the buyer is asking the seller to do or pay for.  As you’ll see, choosing which items to include in a Request for Repair is part art and part science.  Similarly, the Request for Repair is an item that the seller and his Realtor should discuss and understand prior to receiving one from the buyer.

Then You Qualify for A Fast Track Short Sale with Wachovia

Don’t wait one more minute to read more and find out how!!!

• Wachovia is one of the most forward looking, smartest banks in San Diego when it comes to helping you avoid foreclosure.
• The Wachovia Fast Track Short Sale program is in San Diego now.
• With our short sale experts and Wachovia’s special team of short sale managers, a short sale can be approved and accomplished within 45 days or less.
• You risk nothing.
• You pay nothing.
• You have nothing to lose.

How Do I Contact My Wachovia Short Sale Team?

• Read up on Short Sales right here.
• Write down all your questions.
• Contact Don Reedy, your North County San Diego short sale specialist.
• Get details on Wachovia’s Fast Track Short Sale program.
• Do it now……..

 Yes, I want to be contacted to discuss Wachovia’s Short Sale Fast Track Program

Home Values in 92084

[iframe http://tools.1parkplace.com/mlswizard/MlsRedirect.aspx?userid=39127&search=22908&mode=200&sort=high 590px 500px]

Welcome to Vista, CA 92084

Vista is a city in north San Diego County, California. It was incorporated January 28, 1963 and became a charter city on June 13, 2007. Located just seven miles inland from the Pacific Ocean in northern San Diego County, the City of Vista has a Mediterranean climate.

So starts the information on Vista, California from Wikipedia.com. But those of us who live and work in Vista…92084, realize that mere descriptions of size, shape, government and commerce mean far less than the beauty and uniqueness that unfolds in Vista, CA. Here are mountains and valleys, farm land and estate homes, tree lined streets and ocean views.

Start Your Search For 92084 Vista Homes Here

Contact Us Below

[contact-form 1 "Contact form 1"]

On April 7th, between the hours of 2 p.m. to 7 p.m., you can get started with a home approval loan from Prudential California Realtor Don Reedy, and Curtis Fox, one of an elite number of mortgage brokers in the area.  Before you start looking for a home you should get a preapproval letter in hand.  You know that, of course, but sometimes it’s just hard to find the time to do it.  Now, along with seeing hundreds of the top vendors at the San Diego Business Showcase, you can start the loan approval process at the same time.  Once you have an approval, and know what you can afford, buying your home will have become much easier.  You’ve got a budget in hand, and now you can let Don Reedy use his expertise to help you negotiate the best price for the home you want.

Curtis Fox and Home Services Lending

Curtis Fox a great lender, and a great guy to boot.  He and his team of lenders are able to be as good as they are in part due to who they are.  Curtis represents Home Services Lending, a member of Home Services of America, and a Berkshire Hathaway company.  Home Services is also affiliated with Wells Fargo Bank.   What makes a great lender different from a good lender, and certainly from a bad lender (not that there are any of those out there ), is the depth of knowledge and depth of backing to not only qualify you, but see you through the maze of difficult and time consuming details of today’s loan process.  It’s hard out there now, with banks and lenders having been burned by their own ineptitude, and by the greed and lack of care buyers took over the last five years.  Now, it’s you who has to do it “by the numbers”, do it right, and do it with someone who can carry the ball all the way with you.   That someone is Curtis Fox.

Apply for a Loan at the San Diego Business Showcase

Don Reedy will be at the Del Mar Fairgrounds from 2-7 p.m. this Thursday, April 7th, exhibiting proudly with over a hundred other businesses at the San Diego Business Showcase.  Come talk with him, and he’ll put you in touch with Curtis  Fox, get you started on a loan approval, and then hopefully see you back with preapproval in hand to start the home buying process.  If you want to talk to Curtis today, just give him a call at 760-585-5469, tell him I referred you, and then settle back and watch this professional work hard for you.  Or, if you want, just fill out the form below, and we’ll email or phone you with the answer to any of your real estate or mortgage questions.

[contact-form 1 "Contact form 1"]

Your home's value is in your hands

Most of  us know that the value of our home is pretty important.  If you don’t know exactly what your home is worth, then you need to come see us at the San Diego Business Showcase.

Your home’s value is important

Since much of an average homeowner’s financial portfolio is tied up in the value of their home, knowing exactly how the market is affecting that value is important.  Will you be able to access funds from your home?  Are you upside down?  Can you take advantage of loan programs, equity financing or other tax planning techniques to better use the value of your home?

Free Home Valuation

Come to our booth at the Del Mar Fairgrounds on April 7, 2010, between the hours of  2 p.m. to 7 p.m.  We’ll offer you a complimentary valuation of your home, answer questions you may have, or just talk about the housing market here in San Diego.  We’re experienced real estate professionals who know what you need to know, and how to make it easy for you to get that information.

Sign up for VIP Treatment

Take advantage of signing up early, and receive VIP access to reports and valuations for you home and those homes of interest in your neighborhood.  Head to The VIP Real Estate Opportunity at our website, and get yourself on track for having information available 24 hours a day.

If you want a question answered immediately, just give us a call at 760-802-9713, and we’ll be happy to help.