Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
Please click on this link to view the Housing Trends OCTOBER - 2011 Newsletter:
http://seanseckar.housingtrendsenewsletter.com/?newsletter_id=278
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.
Housing Trends eNewsletter is also filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, housing market video reports, blogs, real estate glossary, maps, mortgage rates and calculators, consumer articles, community reports that map shopping, schools, recreation and more.
If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:
http://SeanSeckar.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0
Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.
Sincerely yours,
Sean Seckar
RE/MAX of Santa Clarita
25101 The Old Road Santa Clarita CA 91381
661-644-2945
RealEstateInSCV@aol.com
Q: If I pay cash for a home, should I expect a discount?
A: You might be able to negotiate one, but don't expect it. It all depends on the sellers' motivation.
If the sellers want or need to close quickly—to close on their dream house, for instance, or to relocate because of a job transfer—then cash can be a very appealing lure. After all, cash is a sure thing. A financed deal isn't, since it is subject to lenders' increasingly stringent underwriting standards and paperwork backlogs, as well as the vagaries of the buyers' credit histories.
Moreover, if you pay with cash, you're offering a "cleaner" deal that eliminates the contract's financing contingency. Knowing that you have a little less room to wiggle out of the deal is attractive to many sellers, who don't want to go through the hassle of remarketing their homes and worry about having a deal fall through at a time when prices are weak.
But keep in mind that at the closing table, the sellers will walk away with a check—and whether the money comes from you or the lender doesn't matter. So if the sellers aren't time pressed, you might not be able to wrangle a deal at all. In fact, especially if they have minimal equity, they may prefer someone who makes a more generous offer and fewer demands, as long as that person can come up with a large down payment and has a pre-approval letter from a bank.
And speaking of banks, having a fistful of cash isn't likely to get you a bargain for a foreclosed home, either. Although it behooves banks to get such deadweight off their books as quickly as possible, lenders are beholden to their stockholders to get the highest possible price for their properties. So being able to pay cash won't impress banks; in fact, it undercuts their reason for being.
You're also likely to find that many builders will balk at discounting their homes for cash. That's because many own their own financing companies, or have arrangements with affiliated lenders. As a result, these builders can make more profit over time through financing than they do from the sale of property. To them, your cash offer eliminates a potential profit center and can even be seen as a drawback. Indeed, they may even offer you a discount if you don't pay cash and finance with them instead.
Despite these drawbacks, it's undeniable that a cash offer will get a seller's attention and mark your intentions as serious. If you do decide to go the all-cash route, make sure your offer asks for everything a lender normally would require—namely an appraisal, a home inspection, a wood-boring insect inspection and title insurance. Lenders typically insist on these items because they help determine the price, condition and ownership status and lineage of a home. For your own protection, you should, too.
Mary in Santa Clarita Asked: What is the best site to search for real estate?
Answer:
There are many sites that are easy to use such as Zillow, Trulia and Realtor.com but your best bet is Listingbook.com. This site is connected directly to your local MLS and updates real-time. Many other sites can take as long as 24-72 hours to update. If you are working with a Realtor, they can set up an account for you. This is a tremendous form of communication between agent and client as you are able to save favorites, make comments and ask questions on the actual property....your agent can see what you wrote and they can respond back at anytime. I have all my clients set up on this site. Most clients have become so addicted that they continue looking around long after they have bought their home.
Whichever site you use, your best source of information is a licensed Realtor.
Best of luck in your home search
Sean Seckar – Realtor
RE/MAX of Santa Clarita
661-644-2945
http://www.seanseckar.com/
www.TheSCVShortsaleSpecialist.com
DRE License # 1336429
One thing I come across a lot when doing short sales, is that the homeowner is not only behind on their payments and taxes, but also defaulted with the HOA. The bank generally will not pay any money towards the delinquent HOA dues and the buyer, many times, is prohibited from contributing by their lender. That leaves the payment outstanding, even if the short sale is approved, and if the
seller can't pay it, it becomes an issue. In certain cases, we can try and negotiate with the HOA company to reduce the owed amount by removing the late charges and interest, but that can be difficult as well. The bottom line is, if you can't pay your mortgage payments and property taxes, try to keep the HOA current because that will make the entire process much smoother for everyone involved.
Home and condominium sales during August throughout the Santa Clarita Valley rose sharply, posting the third consecutive year-to-year increase, the Southland Regional Association of Realtors reported on Thursday, Sept. 15.
A total of 222 single-family homes changed owners last month, up 19.4 percent from a year ago and 18.7 percent higher than this July. The August total was the best monthly tally since July 2009. Local home sales are up 124.2 percent from the record low set in January 2008.
Condo sales also came in strong with the 94 closed escrows reported during August up 38.2 percent from a year ago and 28.8 percent better than July. An equal number of condo sales were reported in December 2009, but to beat that number requires going back to March 2007. Condo sales are up 203.2 percent from the record low set in January 2008.
“There’s pent-up demand for housing,” said Sal Aranda, president of the Association’s Santa Clarita Valley Division, “but what has stalled some buyers up to this point is economic uncertainty and what, if anything, lawmakers will do to speed recovery of housing.
“Yet the strong August sales numbers speak to the strength of our local community,” he said. “The Santa Clarita Valley is a highly desirable place to live, the local economy is robust, and the communities are welcoming. In the end, those attributes trump uncertainty.”
The median price of homes sold last month came in at $372,500, down 10.2 percent from a year ago and up less than 1 percent from July. Prices have been bouncing along the bottom with the August median up a mere 7.7 percent from the record low, which came in January.
The condominium median price also fell, down 7.0 percent to $200,000, which equals the record low also set this January.
“Combine low prices, low interest rates and the gradual availability of home loans and it’s easy to understand why buyers are more active in the Santa Clarita Valley,” said Jim Link, the Association’s chief executive officer. “There simply are not many communities in Southern California that offer so much while costing so little.”
Pending escrows — a measure of future activity — suggest that this summer’s renaissance will continue. The 393 open escrows at the end of August were up 5.1 percent from a year ago.
A total of 1,115 properties were listed for sale throughout the Valley, down 5.5 percent from a year ago. That is a 3.5-month inventory at the current pace of sales.
The Southland Regional Association of Realtors® is a local trade
association with more than 10,000 members serving the San Fernando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation.
Traditional investments are delivering low returns, and home prices are at bargain levels. Is it time to consider buying some rental housing?
Investors used to aim for rents that were 1% of the purchase price, or $1,000 a month for a $100,000 home—an annual gross return of 12%—says Michael McCreary. His firm, McCreary Realty, manages about 300 properties in the Atlanta area. Today, he says, some of his investors are getting as much as 2% of the purchase price.
In general, though, average returns after expenses are far less, more like 5% to 6% of the property value, says Ingo Winzer, president of Local Market Monitor, a real-estate forecasting firm. But that still is well above what many other investments yield.
Before you start scouring for deals, keep in mind that owning rental properties is time-consuming, expensive and fraught with challenges, and many investors lose money. You will want to avoid falling into one of these common traps.
• Mistake 1: Confusing a cheap deal for a good deal.
It is true that you can buy some homes for ridiculously low prices—but that doesn't mean you can rent them out. Homes in deserted subdivisions aren't any more appealing to renters than they are to buyers. The same is true for less-attractive properties or those in less-desirable school districts.
Investors from the San Francisco area often look at the Sacramento market assuming they can get Bay Area-like rents, and end up overpaying, says Robert A. Machado of HomePointe Property Management. He uses several resources, including the website FinestExpert.com, to estimate rents. Other experts suggest canvassing apartments nearby to see not just their rates, but whether they are offering special deals, like a couple of months of free rent.
• Mistake 2: Overlooking key costs.
Knowing the potential rent isn't enough. Before you buy a property, you should also factor in closing costs of 3% to 6%, the costs to fix up the place and maintain it, and your holding costs. Then add the profit you expect to make (and more closing costs, if you intend to turn around and sell it). Only then can you figure out what you can afford to pay.
• Mistake 3: Forgetting that time is money.
In real estate, "time is your biggest enemy," says David Hicks, co-president of HomeVestors of America, a franchiser whose motto is "We Buy Ugly Houses." You lose money when your property is empty, whether you are painting it or between tenants. You also lose if you buy in the fall and can't replace the roof until spring. You may be better off accepting a lower rent than waiting for a higher-paying tenant.
• Mistake 4: Assuming you will sit back and watch the rent roll in.
"When you become a landlord, you become a rent collector," says Mark Kreditor of Get There First Realty, which manages 1,600 rentals in the Dallas-Fort Worth area.
Just like homeowners who can't pay the mortgage, tenants lose their jobs and stop paying the rent. Evicting them can take several weeks, and some steal appliances or other property. Mr. Kreditor says that once or twice a month, a tenant removes a home's copper tubing on the way out the door to sell the copper for its meltdown value.
You will need to screen prospective tenants carefully—or pay someone to do it for you.
• Mistake 5: Underestimating repair costs.
As with all homes, you will be making lots of repairs. You may find wood rot or mold when you remove that cracked bathtub. Carpet in rental homes typically must be replaced every five years, and you may have to repaint after every tenant. Tony A. Drost, president of the National Association of Residential Property Managers, or Narpm, suggests setting aside six months of expenses so that you will have funds if a major repair is needed.
• Mistake 6: Assuming that owning a rental is the same as owning a home.
You might put up with flaws in a home that a renter wouldn't tolerate. In addition, many states and communities have strict (and complex) laws for landlords, even if you own only one property. A property manager can handle most of the headaches, but you should expect to pay one up to a month of rent for finding and screening tenants—and up to 10% of the monthly rent for management fees.
According to experts, now is a great time to look into buying your first
home! Mortgage rates are at an all time low, and the collapse in the housing
market means that there are a huge variety of homes in every price range to
choose from: and nearly all of them have eager sellers who are willing to
negotiate.
For first time home buyers, the task of selecting just the right house can
seem especially daunting. Having a checklist with you will help you to sort out
one home from another and determine which one has the qualities that are the
most important to you. Print out a separate list for each home instead of trying
to fit them all on one page, and then keep a bunch of lists in your car so that
they will be accessible at a moment's notice.
When creating the template for your checklist, you will want to include:
-- The location and price of the house as well as the date you saw it.
Listing the viewing date will help trigger your memory when you're trying to
recall what the house looked like later.
-- How much are the property taxes?
-- What is the style of the house: is it a rambler, split-level, two story,
etc? How many rooms, bedrooms, baths and half baths does it have?
-- What color are the walls? Will the house need a lot of cosmetic updating?
You can always tell a house that has been somewhat "beaten up:" it will have
scarred doorframes and marks on the walls. If the house has these kinds of
issues, it may give you wiggle room to negotiate on price.
--The kitchen is one of the most important rooms in the house. Are the
appliances in good condition? Is the stove electric or gas? How are the flooring
and countertops? Will there be adequate cupboard space? Is there plenty of room
for eat-in dining?
-- How is the closet space and does it have extra room for storage? For
practical reasons, this is one of the most important features in a home. Walls
can be painted and wallpaper replaced, but it's hard to add on additional
storage.
If you like to keep a lot of holiday decorations, boxes of books, and other
mementos, you may want to look for a house with an attic or a partially
unfinished basement to accommodate your storage needs. The garage should be for
the cars and bicycles, not for storage.
-- Does it have a garage and if so, how many cars? Does it have a covered
carport?
-- What size lot does it sit on? Is the yard landscaped? Is it a new enough
house that you will have to foot the expense for sod and flower beds? Or is it
an older home with older landscaping that will require lots of updating? Is it
fully fenced? If you have pets or children, this last item may be of particular
importance to you.
-- Check out all of the vital systems: make sure there are adequate heating
and cooling systems and that they are all in working order. Find out how old the
furnace and hot water heaters are. What are the average monthly utility
costs?
-- Do a thorough check of the neighborhood, looking for important things such
as the type of traffic on the street, whether or not the neighbors keep their
properties in good condition, the quality of the schools, and convenient
accessibility to stores.
These are just some basics: you will want to add more as you see fit.
Happy House Hunting!
Sean
661-644-2945
