I had the chance to attend RareEvo 2025, and it was an incredible few days of learning, networking, and reimagining how blockchain can transform real estate. Events like these always remind me how quickly the space is evolving and how important it is to keep exploring new ways to bridge traditional industries—like real estate—with emerging technology.
One big idea that stood out for me: dynamic NFTs (dNFTs). Unlike static NFTs, which never change after minting, dynamic NFTs evolve over time. That opens up powerful new possibilities for how we track, share, and prove the story of a home. I plan to ‘graduate’ the commemorative NFT’s that we currently mint into these dNFT’s soon. Here’s why:
Instead of being a static token, a dynamic NFT becomes a “living property record”.
Possibilities a Dynamic Real Estate NFT Could Include
Mutable Metadata – Homeowners or permissioned parties could append updates post-mint.
Access Control – Smart contracts define exactly who can make changes (like the homeowner’s wallet).
Content Types – Attach inspection reports, receipts, renovation logs, video tours, and more.
Token-Bound Accounts (ERC-6551) – An advanced option where the NFT acts like its own wallet, holding related documents or tokens.
📌 Think of it as a digital property dossier that evolves with the life of the home. A Property Passport or a Home Provenance NFT. Instead of just being a keepsake, our NFTs will become a living record of ownership, care, and upgrades that travel with the property. Just like home sales evolved into an MLS, I believe the MLS will eventually be filled with NFT’s the way it’s filled with virtual tours now. What do you think?
RareEvo Highlights That Stood Out
RareEvo was filled with forward-thinking projects that show where blockchain is headed. A few moments really resonated:
Charles Hoskinson reminded us that “every overnight success has 10 years of iteration behind it.” The idea isn’t to chase quick wins, but to keep building tools that actually solve problems.
Adam Dean demo’d a Cardano-powered NFT vending machine using Hydra that enabled instant, fee-free transactions. This kind of frictionless experience is exactly what the world needs for smoother onboarding.
The World Mobile Token (WMT) project showcased how blockchain and connectivity can empower underserved communities in Africa with access to finance, education, and fair trade opportunities. It sparked some big ideas for how real estate could align with similar mission-driven tech.
In addition, WMT featured a video about bringing connectivity to neighborhoods with spotty service in the hills, like Tristan Thompson’s in Los Angeles. Homeowners are installing nodes across the world and getting kickbacks for providing connectivity. All while dramatically decreasing costs. We will certainly be doing another post about this soon. The World Mobile guys are the real deal. One of the shirts Rob gave us was made & hand, & signed by a woman saved from human trafficking. We need more initiatives like this in the world.
The ongoing conversation around Bitcoin DeFi and real-world assets (RWA) resonated strongly with my real estate mind, but there was not a lot of projects present specifically dedicated to real estate or mortgages. As decentralized finance matures, it opens up opportunities for tokenized ownership models, lending, and investing that feel much more accessible than traditional channels. This is something that is already overdue, and I’ll continue to push for real estate purchases and loans on the blockchain. In addition, our initiatives with Flower Den Retreats will also explore & integrate access via Web3 to real property. More on that soon.
Here are some moments captured at #RareEvo25 learning more about Cardano and decentralized blockchain technologies:
Adding Real Estate To The Conversation
The big question I’m bringing home from RareEvo is: how can we take these concepts and ground them in the real estate world in a way that helps buyers, sellers, and communities?
I believe dynamic NFTs are a good starting point. They let us create more transparency and utility in each transaction. Combined with tools like decentralized connectivity, digital wallets, and tokenized assets, we’re getting closer to a future where property transactions are not only faster and cheaper, but also more meaningful and connected to broader ecosystems.
RareEvo reminded me that blockchain isn’t here to tell us what to do—it’s here to enable what we want to create. For me, that means continuing to push forward in blending real estate, ownership, and Web3 technology in a way that adds real-world value.
Here are some of the commemorative NFTs we’ve minted for home buyers, sellers, and investors in recent years. If you’d like an NFT of your home, fill out the form below:
Ready to Explore the Future of Real Estate?
If you’re curious about real estate blockchain, dynamic NFTs, or tokenized property investing, let’s connect. Whether you’re a buyer, seller, or just excited about where this technology is headed, I’d love to share more insights and brainstorm possibilities with you.
📩 Reach out today and let’s start building the bridge between real estate and Web3
Would you like a dNFT for your property? Submit a request for mint.
Your HVAC system is one of the most important (and often overlooked) components of your home. It works year-round to keep you comfortable, yet many homeowners don’t think about it until something goes wrong — usually at the worst possible time. That’s why having a solid HVAC maintenance program in place is a good idea. Regular maintenance helps prevent costly breakdowns, improves energy efficiency, and extends the lifespan of your system.
Why Regular HVAC Maintenance Matters
Just like your car needs regular oil changes, your HVAC system needs consistent care to keep running smoothly. Without regular maintenance, dust and debris can build up, reducing efficiency and forcing your system to work harder, which increases energy bills. Worn-out parts can lead to sudden breakdowns, and poor airflow can result in uneven heating or cooling — not exactly what you want when the weather is extreme.
Here’s why a maintenance program is a smart investment: ✅ Increased Efficiency – A well-maintained system runs more efficiently, which translates to lower energy costs. ✅ Fewer Breakdowns – Catching minor issues early helps prevent expensive repairs down the line. ✅ Better Air Quality – Clean filters and coils mean cleaner air circulating through your home. ✅ Longer System Life – Proper care can extend the life of your HVAC unit, saving you from early replacement costs.
Orange County Season Pass HVAC Maintenance Program Option
Our friends Chad and Rebecca at One Season Heating & Air Conditioning have made it easy and affordable to stay on top of HVAC maintenance with their Season Pass Maintenance Program. For a low monthly fee, you’ll get regular system check-ups and priority service — giving you peace of mind knowing that your HVAC system is in top shape year-round.
Here’s a breakdown of the three plan options:
Here’s a current sampling of the programs offered on oneseasonair.com
These plans offer a convenient way to stay on top of HVAC maintenance while saving money on repairs and ensuring priority service. If you want to avoid unexpected breakdowns and costly repairs, Season Pass Maintenance Program is a smart investment!
Get Expert HVAC Tips at Homeownership Day
If you want to learn more about how to care for your HVAC system, Chad shared some fantastic insights at Homeownership Day this year during his session, “HVAC Tips for Homeowners.” He covered key maintenance tasks you can handle yourself, warning signs to watch for, and how to make your system more energy-efficient.
Investing in a maintenance program like the Season Pass is one of the smartest moves you can make as a homeowner. It’s affordable, convenient, and ensures your system is running at its best when you need it most. Reach out to Chad and Rebecca today to get started — your future self (and your energy bill) will thank you!
Buying a home in Orange County or Los Angeles can feel like an uphill climb, but with the Ladder Up Home Grant, you get the boost you need to make homeownership a reality. This exclusive grant program provides up to $50,000 in assistance for eligible buyers, helping to break down financial barriers and put you on the fast track to owning your dream home.
How the Ladder Up Home Grant Can Help You Buy a Home in OC or LA
✅ Up to $20K or $50K Grants – Use it for your down payment, closing costs, or rate buy-down (available in Orange County & Los Angeles counties). ✅ Low 3% Down Payment – More accessible financing options make it easier to purchase a home. ✅ Save on Fees – Enjoy reduced loan origination costs, keeping more money in your pocket. ✅ No Maintenance Fee Checking – Eligible clients receive a City National Personal Mortgage Checking account with no maintenance fees. ✅ Purchase or Refinance – Up to $20K for both purchases and refinances, while purchases can qualify for up to $50K in grant assistance. ✅ No Mortgage Insurance – Save thousands over the life of your loan, no matter your down payment amount.
Find Out If a Property Qualifies
Not sure if the home you’re interested in is located in an approved area? We’ve got you covered! The Ladder Up Home Grant is available for properties located in census tracts where the minority population is above 50%. If you’re considering a home in Orange County or Los Angeles, reach out to us with the address, and we’ll check eligibility for you.
Take the Next Step to Getting a Grant for Your Home
Homeownership is within reach, and the Ladder Up Home Grant is here to help you get there. Whether you’re looking to buy a home or condo, this exclusive program from City National Bank provides significant financial assistance that can make all the difference. Contact us today to check if your desired property qualifies and take advantage of this incredible opportunity!
📩 Contact us by filling up the form below to get started!
Homeownership is one of the most significant investments you’ll ever make. But do you know how much your home is worth in today’s market? Whether you’re considering selling, refinancing, or simply want to stay informed, tracking your home’s value is essential.
Why Should You Track Your Home’s Value?
The real estate market is always changing, and factors like interest rates, local demand, and economic shifts can all influence property values. Staying updated on your home’s worth helps you:
✅ Make Smart Financial Decisions – Understanding your home’s value allows you to make informed choices about refinancing, home equity loans, or selling.
✅ Monitor Market Trends – Knowing how the market is performing in your area can help you strategize when it comes to buying or selling real estate.
✅ Plan for the Future – Whether you’re looking to upgrade, downsize, or invest in another property, having an accurate valuation will guide your next steps.
How Can You Get a Free Home Valuation Report?
We offer complimentary monthly home valuation reports to help you stay ahead. These reports provide insights into:
📊 Your estimated home value 📉 Market trends and comparable sales 💰 Equity growth and refinancing opportunities
Instead of guessing your home’s worth, get real-time data straight to your inbox.
Sign Up To Learn Your Home’s Value Today – It’s Free!
Don’t leave your biggest investment to chance. Stay informed with our free home valuation report and take control of your financial future.
Imagine finding your dream home, but you haven’t sold your current one. A bridge loan for real estate can provide the funds to buy that new property without jeopardizing your offer due to selling contingencies. Keep reading to learn the essentials and explore real-world scenarios.
Understanding Bridge Loans for Real Estate
A bridge loan is a short-term solution. It bridges the gap between buying a new home and selling your existing one. This loan type lets you make a non-contingent offer, strengthening your position in competitive real estate markets.
Why Consider a Bridge Loan for Real Estate?
Sometimes, the perfect property appears at the wrong time. Bridge loans turn you into a stronger buyer, removing the contingency of selling your current house. This helps in a few key situations.
Winning in Competitive Markets
Sellers and real estate agents prefer non-contingent offers. A competitive offer with a quick closing is more appealing than one tied to a home sale.
Bridge loans create a cash-like advantage. They streamline the closing process and alleviate financing concerns. This quick close and certainty make your offer much more attractive.
From a seller’s perspective, this reduces the escrow timeline and potential uncertainty of getting your existing home under contract. It also simplifies the transaction, reducing potential complications.
Flexibility and Peace of Mind
Bridge loans provide breathing room. They give you time to sell your current house without rushing. Yes, you may be paying two mortgages simultaneously for a period, until your first home sells; but your bridge loan lender will work with you to ensure you have the proper amount of reserves to hold both properties for a time. The bridge lets you control your moving timeline and maximize the profit from your sale.
Navigating the Bridge Loan Process
Bridge loans operate similarly to traditional mortgages but with added steps. They utilize your current home’s equity to cover the down payment and other costs. This impacts the qualification process.
Qualification and Underwriting
Lenders review your debt-to-income ratio, credit score, and home equity. They often prefer a loan-to-value ratio under 70%. You will need substantial home equity to qualify. Lenders might want to check your personal loans or other credit cards, so be sure to disclose your full financial situation when securing the loan. Also keep in mind and ask upfront about prepayment penalties as part of loan agreements.
Interest Rates and Costs
Bridge loan rates are typically higher than those for regular mortgages. Rates can range from 6% to 16% in 2024, according to various sources. However, keep an eye on how these compare to money market accounts or CD rates, as these offer potential returns while maintaining easier access to cash, if necessary.
Home equity loans can potentially offer a lower-cost alternative, if you already have a line open when you find the property you love. HELOCs may provide a 2% lower interest rate on average compared to other loans. These loans leverage your home’s equity for funding but often require strong credit to qualify, and a 20-30 day turnaround. For some buyers, the wait is too long to obtain the property they want.
It’s also helpful to compare with the prime interest rates and current mortgage rates. Knowing where prime rates sit will give an idea about interest rate trends.
Repayment
Most bridge loans last around one year or less. The typical plan is to repay the balance with proceeds from the sale of your old home. Most bridge loans have a firm due date. Talk with a Certified Mortgage Planner or experienced lender about repayment terms to make sure everything is clear and aligns with your other savings accounts. This also includes how your bridge loan will impact your business credit, if applicable.
Bridge Loan for Real Estate: Pros & Cons
Bridge loans present opportunities and challenges. So, you want to save for your loan? First, get familiar with how these factors are changing the game for you – it’s the smart way to start. Discuss it with a loan officer or mortgage lender to see how a bridge loan might impact your other mortgage products or financial plans.
Pros
Competitive Edge: Make non-contingent offers, strengthening your purchase power.
Buy Before You Sell: Secure your new home before selling your current property. Take your time prepping and selling to maximize profit without worrying about housing deadlines or mortgage payments for your new purchase until your current house closes.
Quick Closing: Funding secured upfront enables a swift and more competitive close, outpacing offers subject to financing or other sale contingencies, allowing a faster approval process and expediting when you start paying down the new mortgage.
Cons
Higher Interest Rates: Expect higher rates, around 2% above standard mortgages. If using the bridge loan to pay down debt, compare how it differs compared to debt management plans through things like a balance transfer to potentially lower interest and how this interacts with current refinance rates.
Double Payments: You may have to make payments on both loans briefly. Account for this to avoid financial strain and know how your cash flow will be affected, especially for first-time homebuyers unfamiliar with juggling two sets of mortgage lenders at once or understanding the loan approval process. If necessary, speak to someone who knows your finances to create a savings calculator to account for both and discuss if it makes sense for your current financial situation.
Complex Underwriting: The approval process can be stringent. Meeting lenders’ loan-to-value (LTV) requirements becomes crucial due to the increased risk associated with using home equity as collateral. They will be taking into account how much you’ve saved, how often you contribute to savings accounts and other details to help ensure it’s the right move given the complexities involved. There’s less paperwork if exploring other mortgage options like cash-out refinance, so you might want to keep your other savings cds as options rather than using up available funds in a short time period, especially if concerned about approval process timelines. Also take a look at prepayment penalty information in those financial accounts before borrowing from them as well to make sure it is worth using that to fund your home loan rather than taking on more debt if concerned.
Alternatives to Bridge Loans for Buying Real Estate
Before deciding, review alternatives and get your financial team’s input.
Home Equity Loans
A home equity loan leverages your current house’s value for the needed funds. You retain your first mortgage but make an additional monthly payment on the new loan.
HELOC (Home Equity Line of Credit)
A HELOC functions similarly to a credit card, but it’s secured by your home equity. The existing mortgage remains, potentially affecting your chances for other financial agreements.
Let’s Chat – Should you cross the bridge?!
A bridge loan can help you quickly purchase real estate in dynamic markets. Be aware of the expenses and higher rates, ensuring your financing plan accounts for these before starting a new mortgage to stay compliant. Understand the complexities, as this may not be the ideal option for all buyers. Though suitable for those with ample resources, thorough planning with checking accounts, exploring refinance lenders or refinancing through a mortgage refinance could help ensure the move goes as smoothly as possible, including any interactions between refinance rates with mortgage payments for either loan. Ensure due diligence with any mortgage rates to determine how it will interact with the balance on any credit cards as well to keep track of overall balances for long-term financial plans, especially if you own a small business. A bridge loan is a complex product and requires planning. Speak with a trusted advisor before using a bridge loan to make sure it aligns with your existing personal loans, student loans and financial goals, both short term and long term.
AskAngie team has a list of Orange County and Southern California Bridge Loan lenders if you would like a personal referral. With 20+ years selling real estate, we don’t shy away from complicated deals, and we can help you coordinate all the many aspects of buying a new home before selling your first property. Fill out the form below or text Angie at 949-338-7408 to get started!
Homeownership Day 2025 is set to be an exciting event, continuing a tradition that has been running since its inception in 2012. This annual educational event aims to promote the benefits and opportunities of homeownership, encouraging individuals and families to explore the various paths to owning their own homes. Mark your calendars for January 25, 2025, as this date promises to be filled with valuable insights and resources for prospective homeowners, current property owners, and investors alike.
The Philosophy of Homeownership Day
At its core, Homeownership Day embodies the belief that owning a home is a vital part of achieving financial stability and personal fulfillment. The event seeks to educate attendees about the intricacies of home buying, including financing options, market trends, and the long-term advantages of homeownership. By fostering a supportive community, Homeownership Day empowers individuals to make informed decisions about their housing future. Furthermore, the education provided will help attendees ‘dream bigger’ when it comes to property goals for themselves and their community.
Celebrating Homeownership for over a Decade
Since its launch in 2012, Homeownership Day has grown significantly, attracting experts, real estate professionals, and aspiring homeowners and investors. This year marks a decade of commitment to promoting homeownership as a cornerstone of community development and individual prosperity.
Real Estate Expert Insights
One of the notable experts participating in Homeownership Day 2025 is Astrid Asworth, who will share her expertise on navigating California’s Proposition 19. Her session titled “Taking Your Current Taxes to Your Next Home” will provide invaluable tips for the older generation of homeowners looking to maximize their tax benefits when moving. Astrid’s insights are particularly relevant for those considering relocating within California, as Prop 19 offers unique opportunities for tax savings.
This year’s event will also cover hot property topics like What’s Happening with the Current Real Estate Market, First Time Buyer Credits & Grants, Adding ADU’s, Maximizing ‘Mixed Use’ properties, Writing Contingent Offers, and Leveraging Crypto into Property.
Goals of Homeownership Day
The primary goals of Homeownership Day include:
Education: Providing workshops and resources that cover various aspects of home buying.
Networking: Creating connections between homeowners and industry professionals.
Empowerment: This ALL inclusive event is here to encourage attendees to take actionable steps towards homeownership.
These objectives aim to demystify the home buying, selling, and investing processes; while inspiring confidence in prospective owners.
Save the Date & Brush Up on Real Estate Education
Don’t miss out on this incredible opportunity! Be sure to save January 25, 2025, on your calendar for Homeownership Day. We’ll have a Twitterspace where everyone can log on, and some of the experts may also offer in person sessions – check the Homeownership Day website for deets as the event plans continue to unfold.
Whether you’re a first-time buyer or looking to upgrade your current living situation, this event will provide you with the tools and knowledge necessary to make informed decisions. To stay updated and secure your spot at next year’s event, be sure to fill out the sign-up form at Homeownership Day, or fill out the registration form below.
Join us in empowering everyone to own a home (or multiple homes!) and take the next step toward realizing your dream home by registering today!
In today’s highly competitive real estate market, securing the right mortgage is crucial for buyers looking to stand out and ensure their offers are accepted. We’re excited to highlight Derek Beisner, one of our trusted lender partners, who has recently joined Summit Mortgage. Derek brings with him exceptional programs that provide buyers with the Confidence to Close!
CA Buyers: Need a multiple offer advantage? Check out Summit Funding’s ‘Seller’s Choice’ Underwriting Guarantee
One of the key features of Summit Mortgage’s program is the Seller’s Choice Underwriting Guarantee. This innovative program offers sellers a guarantee that the loan will close, or Summit Mortgage will either purchase the home or pay the seller $10,000. This not only provides sellers with peace of mind but also makes your offer significantly stronger compared to the competition.
Here’s how it works:
Underwriting Team Review: Summit’s underwriting team reviews, approves, and issues a Guarantee Letter based on the underwriting loan pre-approval.
Presentation to Sellers: This Guarantee Letter is presented to the sellers along with the pre-approval letter, confirming that your offer stands out and is more reliable than the average pre-approval.
Choosing the Best Real Estate Team for Your Home Purchase
In the ever-evolving real estate landscape, aligning with the right team is essential for securing the best home at the best price. Whether you are a first-time buyer, a VA buyer, a move-up buyer, or an investor looking for short-term rentals, multi-units, or a solid 1031 exchange, we have the expertise you need. With over 20 years of experience, both Derek and AskAngie Team can guide you through even the most complicated scenarios.
Why the Right Team Matters:
More Quality Loan Programs to Choose from:: An experienced team will be familiar with various programs and can guide you to the one that best fits your needs.
Network of Contacts: A well-connected team has relationships with multiple lenders, increasing your chances of securing favorable terms.
Streamlined Process: With the right agent, the mortgage process can be more efficient, reducing stress and potential delays.
Summit Mortgage’s pre-approval program, with its Seller’s Choice Underwriting Guarantee, is a powerful tool for home buyers in today’s real estate market. Coupled with the guidance of an experienced agent, you can maximize your chances of success and ensure a smooth, rewarding homeownership experience. By leveraging these resources, you’ll be well-equipped to make confident, competitive offers and be more likely to secure your dream home.
Ready to take the next step in your home-buying journey? Contact us today to learn more about Derek & Summit’s pre-approval program. Don’t miss out on the opportunity to make your offer stand out and achieve the ultimate confidence to close!
The real estate industry is about to experience a significant shift as the New Real Estate Agency Law comes into effect. This introduces several changes that will impact both buyers and sellers. Here’s what you need to know:
1. Buyer’s Agency Agreements are Becoming Law
In the past, buyers often worked casually with multiple agents. However, under the new law starting on August 17, 2024, a signed agency agreement will be required for every showing. This change encourages single-agent relationships, leading to better service, stronger trust, and overall smoother transactions.
2. Buyer Agent Commissions are Always Negotiable
Under the new law, the compensation for the buyer’s agent can be paid directly by the buyer, OR by the seller through ‘buyer concessions’. Importantly, the amount of compensation will no longer be displayed on apps or listing platforms. This change brings more control to buyers and buyer agents, along with additional flexibility to the negotiation process.
3. Clear Picture of Compensation from the Beginning
All parties involved will decide what commission will be paid before any homes are toured. Depending on the property selected, the seller may or may not offer a concession toward this amount. This ensures that buyers and agents have a clear understanding of the financial aspects from the outset.
4. List Your Home at a Price that Includes Buyer Concessions
We are advising Orange County home sellers to list their homes at a price that includes buyer concessions. This means factoring in necessary repairs and compensation upfront, so it’s factored into your listing price. This strategy gives cash-crunched buyers additional options, which will likely net sellers more offers.
The New Real Estate Agency Law is set to bring about more transparency, personal accountability, fairness, and clarity in the real estate market. As we navigate these changes, it’s crucial for buyers and sellers to work closely with their agents to understand the implications and make the most of the new rules.
Please be reminded that listing agents in CA have accountability to the sellers first, so if buyers want the purest form of representation, it’s absolutely critical to work with a buyers agent.
Don’t let the upcoming changes catch you off guard! Stay ahead of the game by familiarizing yourself with the New Real Estate Agency Law. Whether you’re buying or selling, now is the time to partner with a knowledgeable agent who can guide you through these changes and help you navigate the evolving landscape of real estate transactions. Reach out to Angie today at 949-338-7408 or fill out the form below and let’s start strategizing for success in the new era of real estate!
Buying a home in Orange County or anywhere in California is a significant milestone in anyone’s life. It’s a complex process that requires careful planning and decision-making. Here are four tips to help you make your strongest offer on a home.
1. Understand CA Home Budget and Costs of Buying a Home
Before you start house hunting, it’s crucial to understand your budget. This includes not only the purchase price of the home (through a mortgage preapproval) but also other costs such as home insurance, property taxes, closing costs, and maintenance costs. It’s also important to consider your long-term financial goals. Remember, buying a home is a long-term investment, and you don’t want to stretch yourself too thin, OR, wish you had stretched a bit further. This leads us to point #2 when it comes to enjoying the real estate process.
2. Partner with the RIGHT California Real Estate Buyer’s Agent
Are you aware of the new real estate laws changing in 2024? It affects every buyer & seller. A real estate agent is an invaluable partner in the home-buying process. They have the expertise and experience to guide you through the complexities of the real estate market. Buyer’s agents keep your goals and best interest in mind, and help you weigh out options so you are well informed and comfortable moving forward. At AskAngie Team, we can provide insights into multiple offer situations, market trends, help you find homes within your budget, and negotiate on your behalf. We’ll accommodate your unique needs and preferences, helping you find a home that suits your goals the best.
3. Make a Strong, but Fair Offer
Once you’ve found a home you love, the next step is to make an offer. Local comparable properties can help you determine a fair offer price based on value, the local market conditions, and your budget. A strong offer is competitive but also within your means. It’s important to be realistic and not let emotions drive your decision-making process. It’s also important to know Southern California properties frequently sell with multiple offers, above the asking price during the spring and summer seasons. To win the bid, you will likely have to be flexible, close fast, and respond to counter offers quickly and with confidence.
4. Trust Your Agent During Negotiations and the Homebuying Process
Negotiating a home purchase can be stressful, and can cause so many emotions. At AskAngie Team, we will guide you through this process. We will help you navigate counter offers, handle inspections and appraisals, and ensure that all the necessary paperwork is in order.
Enjoying the experience while buying a home involves careful planning, understanding your budget, choosing the right team, making a strong offers, and trusting your real estate agent during the process. With these tips in mind, you’ll be well on your way to securing your dream home with a smile.
Ready to take the next step? Contact Angie today at 949-338-7408 or fill out the form below to start your home-buying journey!
Buying a home in Southern California can be an exciting and rewarding journey, but it’s essential to be well-prepared for the process. With its diverse real estate market and beautiful landscapes, Southern California offers a wide range of housing options to choose from. To help you navigate this adventure successfully, we’ve compiled a step-by-step guide to buying a home in beautiful California.
Evaluate Your Financial Health and Select a CA Lender
Before you embark on your home-buying journey, it’s crucial to assess your financial health. A lender, ideally a Certified Mortgage Planner, can help you determine your budget, calculate your down payment capacity, and review your credit score. These factors will play a significant role in the type of home you can afford and the mortgage options available to you. It’s important to take this step before looking at property so you don’t get emotional and discouraged about something that is not in your budget. If you’d like an introduction to one of our trusted lenders, just ask!
Research and Find Your Forever Real Estate Agent
Choosing the right real estate professional is a pivotal step in your home-buying journey. We understand the significance of this decision, and that’s why we constantly educate and strive to be your forever agent. Not only does Angie have her broker’s license, our experienced team is dedicated to understanding the dynamic Southern California market, listening to your needs, and guiding you through every step of the process. We believe in building lasting relationships, and we’re here to work hard to earn your trust. Our technical, negotiation, & marketing skills will all be an important part of your team.
Learn About the Current Housing Market in Orange County & beyond
Southern California’s real estate market is dynamic and can vary significantly from city to city and even neighborhood to neighborhood. We’ll set you up on a direct feed from the Multiple Listing Service to stay informed about market trends, property values, interest rates, and the local economy. New listings of interest will flow to your inbox and you can use this knowledge to identify good deals. We will help you stay on track every step of the way to make informed decisions throughout the buying process.
Complete Pre-Approval For Your Home Loan
Securing a pre-approval is more than just a formality; it’s a strategic advantage. In competitive Orange County and surrounding markets, every detail matters. Having a fully underwritten pre-approval showcases your commitment as a buyer. Many sellers will not even consider your offer or allow you to view the property without providing this critical information. We can connect you to trusted lenders who make the process seamless. Experience is key, and we’re committed to ensuring your journey is smooth and stress-free.
Find Your New Home, Condo, or Land to Build
Once you have your budget and pre-approval in place, work closely with our team to search for the perfect property. We can usually get you into any property in under 24 hours – just text for an appointment! Consider factors such as location, size, style, and amenities that suit your lifestyle and preferences. Don’t forget to research schools, local services, traffic patterns, and community amenities if those are important to you. Remember to envision life 5, 10, and 20+ years in the future when you are weighing options. Many times, it’s best to narrow in on your favorite community or area, then narrow even deeper to your perfect home.
Make an Offer
When you’ve found your home, you’ll know it in your gut. It’s time to go for it and make an offer! To come up with a price to win the bid, we review comparable listings together, and take market conditions and the seller’s motivations into account. Sometimes we need to offer over or under the asking price. Angie personally crafts a competitive offer on your behalf, and has a great track record of beating out multiple offers – which are very common in the Orange County and Los Angeles areas. Negotiations on price often occur during this phase, so be prepared to adjust your offer based on the seller’s response and level of other offers on the table. This being said, you do not want to risk this critical step with an open house or internet agent who you do not know and trust. It takes years of being both a buyer’s and seller’s agent to know how to best get offers accepted.
Home Inspection & Appraisal
After your offer is accepted, our top priority is to schedule your home and appraisal inspections. This step is crucial to ensure there are no hidden issues with the property. It’s important to know that every inspection uncovers problems, and in California, it’s your decision as a buyer to decide to move forward or not during the first 17 days. We may need to negotiate repairs or a price reduction with the seller, or do additional inspections to find the true root of an appraisal issue. It’s important to keep a level head at this phase of the journey. Our team expertise will be valuable not only to coordinate inspections, but to also guide you with realistic repair expectations and referrals for quotes.
Close Escrow
Closing escrow is the final step to unlocking your new door. During this process, our team grows! You’ll now have an escrow agent at your service, and we also utilize digital signatures, mobile notaries, and have a dedicated Transaction Coordinator. This ensures that all paperwork is promptly managed, multiple sets of eyes review it, and we are early with any and all contract deadlines. We are constantly adopting new technologies and team members to make the closing process smoother and more convenient for you.
California Dreams Come True – Move Into Your New Home!
Congratulations! You’ve successfully navigated the complex process of buying a home in Southern California. Now, it’s time to celebrate and move into your new home. Our dedication doesn’t end at closing. We are committed to being your forever agent. Expect regular check-ins, monthly home valuation reports, and valuable referrals for upgrades or services like floors, solar installation, or professional organizers. We’re not just here for your current investment but for your future goals as well. We take pride in helping your friends and family navigate the steps of buying a home, making homeownership a shared success.
So, what’s your next move? Your dream home in sunny Southern California awaits, and we’re eager to be your trusted partner throughout this adventure. Don’t hesitate—text Angie today at 949-338-7408 to take the first steps toward your CA dream home. That idealistic lifestyle of Southern California is within reach, so let’s make your homeownership dreams a reality!
Dealing with the passing of a loved one can be emotionally and administratively challenging, especially if they did not have their property in a trust. One crucial aspect of managing an estate after someone’s passing is the probate process. Probate is a legal procedure through which the court oversees the distribution of assets, determining heirs and beneficiaries, and ensuring that the decedent’s wishes are carried out by the law or a valid will. In this blog, we’ll explore the probate process, its key terms, and important considerations for listing a property in probate.
Probate Is A Legal Process
Probate is a legal procedure that oversees the distribution of a deceased person’s assets, ensuring that their wishes, as outlined in their will or according to state law, are fulfilled. It’s a court-monitored process designed to provide structure and fairness to the estate settlement.
Do I Need Probate?
The answer is unfortunately YES. Everyone in California will go through probate UNLESS:
The deceased had a well-structured TRUST in place. Trusts are powerful estate planning tools that often allow for the seamless transfer of assets without the need for probate. Therefore, if your loved one had a trust, the probate process can be avoided.
Note that in cases where the will is uncontested and there are no disputes among beneficiaries or heirs (rare!), the probate process may be more straightforward. However, even in these situations, some level of court oversight or validation of the will’s authenticity will still be necessary, and probate fees and timelines still apply. The only way to 100% avoid probate fees is with a TRUST.
Key Probate Termsto Know
Before we delve further into the process, let’s clarify some essential terms:
Executor or Personal Representative: This is the person responsible for managing the estate, either as per the will’s instructions or as appointed by the court when there is no will.
Intestate Succession: When there is no will, the court distributes assets based on state law.
Beneficiary and Heir: Beneficiaries are individuals named in the will to receive specific assets, while heirs include anyone, including a surviving spouse, entitled to inherit under state law.
Letters Testamentary (or Admin): These documents grant authority to the executor or personal representative to act on behalf of the estate.
Full Authority under the Independent Administration of Estates Act (IAEA): This gives the executor or personal representative the ability to handle estate matters efficiently without prior court approval.
Limited Authority under IAEA: In cases where full authority is not granted, certain actions require prior court approval.
Understanding Probate Protocol
Probate is a court-supervised method to ensure the proper distribution of a deceased person’s assets. It involves several key steps:
Petition for Probate: The process usually begins with a family member or a nominated executor filing a petition for probate with the local court. This petition formally requests the court’s permission to handle the deceased person’s estate. It typically takes 2-4 months for California courts to schedule the initial hearing and grant permission.
Inventory of Assets: The executor or personal representative must create an inventory of all the assets in the estate. This includes real estate, bank accounts, investments, personal property, and more. The timeline for this step can vary significantly based on the complexity of the estate and the thoroughness of record-keeping.
Notification of Creditors: The estate’s creditors are notified, allowing them to make a claim against the estate for any outstanding debts. This process typically takes three to six months to allow creditors to come forward and make their claims.
Review and Settlement of Claims: The court will review and approve or disapprove creditor claims. Any valid debts are paid from the estate’s assets. The timeframe for this step can be influenced by the number of creditor claims and whether any disputes or negotiations are necessary.
Distribution of Assets: After creditors are paid, the remaining assets are distributed to the beneficiaries as specified in the deceased person’s will or according to state law if there is no will (intestate succession). The time it takes to distribute assets can vary significantly, especially if there are disputes or complex distribution instructions in the will. It is rarely quick, unfortunately.
Closing the Estate: Once all debts are settled, and assets are distributed, the executor or personal representative can request the court to close the estate. The court’s approval to close the estate may take an additional six to twelve months, or longer, depending on the caseload and administrative efficiency of the local court.
Court Confirmation vs. Non-Confirmation Sales
When it comes to the distribution of real estate through the probate process, there is a critical distinction between sales that require court confirmation and those that do not.
Non-Confirmation Sales:
Non-confirmation sales are real estate transactions that do not require court approval. In these cases, the executor has the authority to sell the property without seeking the court’s permission, as long as the sale is in line with the terms of the will or state law. Non-confirmation sales are typically faster and less costly than court-confirmed sales.
Court Confirmation Sales:
In some situations, a sale may require court confirmation. This is often the case when there are potential conflicts or concerns regarding the sale, such as disputes among heirs, questions about the property’s value, or potential issues with the sale terms.
Sale Process Under Full IAEA
A reminder from our earlier probate definitions: Full Authority under the Independent Administration of Estates Act gives the executor or personal representative the ability to handle estate matters efficiently without prior court approval. It’s always ideal to have Full Authority, and here’s an infographic of what that looks like in Orange, Los Angeles, and Riverside county probate sales:
Sale Process Under Limited IAEA
If you do end up with Limited IAEA, things may take longer, and you’ll have more hoops to jump through. Here is an infographic for Limited Authority under the Independent Administration of Estates Act:
Probate Sale Rules and Procedures
Listing the Property:
Appointment Process: To initiate a property sale, the Executor or PR must go through an appointment process and obtain Letters Testamentary or Letters of Administration from the court, giving them the legal authority to manage the estate, including property sales.
Exclusive Right to Sell: The Executor or PR can grant a Listing Broker an exclusive right to sell the property, current CA law states a 90-day timeframe to ensure timely and active marketing.
Extensions: Extensions of up to 90 days can be granted if necessary, allowing flexibility for unexpected issues or negotiations, up to 270 days.
Notice of Proposed Action: If the total listing period, including extensions, exceeds 270 days, the Executor or PR must issue a Notice of Proposed Action to inform the court and interested parties about their intentions regarding the property sale.
Listing “As-Is”: It’s crucial to list and sell the property “As-Is,” meaning it’s offered in its current condition without significant renovations. Using estate funds for updates may be considered a misallocation of assets by the court, which should be preserved for the estate’s beneficiaries.
Fiduciary Duty: The Executor or PR is legally bound by a fiduciary duty to the heirs or beneficiaries. This means they must work diligently to optimize the sale price, acting in the best interests of those entitled to the estate’s assets.
Probate Listing Disclosure:
Probate Addendum: The Probate Addendum is a mandatory document outlining specific terms and conditions related to the sale. This helps everyone involved understand the unique nature of the transaction.
Specific Disclosures: Unlike standard real estate transactions, the PR/Executor is not required to provide specific disclosures like the Transfer Disclosure Statement and Seller Property Questionnaire. This recognizes the often limited knowledge of the Executor/PR about the property’s history and condition.
Responsibility for Known Defects: Despite these exemptions, the Executor/PR must disclose any known defects or property issues within their personal knowledge. Potential buyers MUST be informed about significant issues that could affect the property’s value or condition.
The Sale and Beyond
Once the property is sold, the proceeds are disbursed to the estate account. The Executor or PR is responsible for paying creditors and administration expenses, as well as addressing other tasks needed to finalize the estate, such as selling additional assets, settling debts, and resolving remaining issues. They must also submit a detailed report to the court, which will review it and issue an order for asset distribution in line with intestate succession or the terms of the will. After these steps, the Executor or PR can distribute the remaining assets as directed by the court and close the estate.
Considerations When Listing a Property in Probate
When dealing with a property in probate, you need to consider several important factors:
Court Appointment: Ensure that the court has appointed an Executor or PR for the estate, a critical first step that can take around three months to complete.
Legal Representation: Determine if your loved one had an attorney representing them in the probate case and maintain effective communication with the attorney for a smooth sales process.
Beneficiaries and Heirs: Understand who the beneficiaries and heirs are, how many there are, and whether you are among them. Managing expectations and avoiding conflicts is essential.
Transparency and Agreement: Encourage transparency with all beneficiaries and ensure that everyone is in agreement regarding the property sale to avoid potential objections and complications.
Minor Beneficiaries: Be aware of whether any beneficiaries are minors, as this may require special considerations.
Authority: Understand the type of authority you have as an Executor or PR. Full authority under IAEA can streamline the process, while limited authority may require additional court approvals.
Property Condition and Appraisal: Assess the property’s condition and verify if the appraisal aligns with its current state. If not, consult with the probate attorney to address the issue, possibly contesting the valuation.
Dealing with the complexities of probate after the loss of a loved one can be so emotionally challenging. Our hearts go out to clients in that situation, and we want to help be a resource and a guide. Understanding the process and following the legal steps in the proper order can make a significant difference. We hope this comprehensive guide has provided you with valuable insights and a clear roadmap to navigate the California probate process.
If you’re currently facing a probate sale, don’t hesitate to consult with us. We learned the breadth of this information from Amy Shah at (949) 385-2681, a knowledgeable Orange County probate attorney, to guide you through the legal intricacies. If you’re reading this post before someone passes, Amy can do even better and set up a proper trust, so you never have to worry about probate woes. Remember, you’re not alone, and there’s support available to help you manage the estate efficiently and by the law.
It’s tough to take the first step towards distributing a loved one’s estate. Please reach out, and we can help you move forward with confidence and peace of mind. We’re here to assist you every step of the way.
Investing in real estate can be a great way to build long-term wealth and create a passive income stream. However, it’s important to make informed decisions when choosing properties to invest in. There are many factors to consider when buying investment properties, and each of them can have a significant impact on the potential return on your investment. In this blog post, we’ll discuss five key factors to keep in mind when considering buying investment properties.
Your overall budget
Before you begin your search for investment properties, you need to determine your overall budget. This will include the amount of money you have available to purchase a property, as well as the amount you can afford to spend on any necessary repairs or upgrades. You’ll also need to consider ongoing expenses such as property taxes, insurance, and maintenance costs. Be sure to have a clear understanding of your overall budget before you start your search for investment properties.
Maintenance Capabilities
Investment properties require ongoing maintenance and upkeep to ensure they remain in good condition and maintain their value. Before purchasing an investment property, consider your own maintenance capabilities. Do you have the time, skills, and resources necessary to handle the necessary repairs and upkeep? If not, you may need to hire a property management company to handle these tasks for you. Keep in mind that hiring a property management company will increase your expenses, so be sure to factor this into your overall budget.
Return Goals
When buying an investment property, you’ll want to have a clear understanding of your return goals. How much income do you hope to generate from the property each month? Are you looking for a long-term investment that will appreciate in value over time, or are you looking for a short-term investment that will generate quick returns? Understanding your return goals will help you choose the right investment property and develop a sound investment strategy.
Tax/Accounting Consulting Needs
Investment properties can be complex from a tax and accounting standpoint. Before making a purchase, consider consulting with a tax or accounting professional to understand the tax implications of owning an investment property. They can help you understand the tax benefits of owning a rental property and ensure you’re taking advantage of all available deductions.
Mortgage Interest
This graph shows the monthly mortgage payment for a $200,000 home loan using a range of interest rates. Photo by Free and Clear
Finally, it’s important to consider the interest rate on your mortgage when purchasing an investment property. A higher interest rate will increase your monthly expenses, which will decrease your overall return on investment. Be sure to shop around for the best interest rate and terms before committing to a mortgage.
To further support you in your journey, we offer referrals to reputable lenders who specialize in investment property financing. Their expertise can play a crucial role in securing favorable loan terms and ensuring your investment journey is off to a strong start.
Different Loan Criteria for Investment Properties
Investing in real estate, especially if it’s your first investment property, can be both exciting and challenging. It’s important to note that there are different loan criteria when purchasing investment homes compared to primary residences. Lenders often have stricter requirements for investment property loans, including higher down payments and potentially higher interest rates. Be prepared to meet these criteria, and ensure your financial situation aligns with these requirements.
There are many factors to consider when buying investment properties. By keeping these five key factors in mind – your overall budget, maintenance capabilities, return goals, tax/accounting consulting needs, and mortgage interest – you can make informed decisions that will help you maximize your return on investment and build long-term wealth.
You can seek advice by reaching out to Angie at 949-338-7408 and she will help with your quest to conduct thorough research before making your investment decisions. We are always happy to be a resource to you!
Bringing a listing to the competitive real estate market of Orange County requires meticulous planning and execution. From pristine beaches to upscale neighborhoods, Orange County’s allure demands a tailored approach to showcasing properties. In this guide, we delve into the essential steps to elevate your listing’s appeal, attract potential buyers, and maximize your success.
Your Trusted Partners Every Step of the Way
At AskAngie team, we pride ourselves on our robust network of referrals and connections, spanning every aspect of the property presentation process. From decluttering to staging, photography to landscaping, we have established relationships with experts who share our commitment to excellence.
1. Hauling – Decluttering
Before unveiling your property to the market, start with a clean slate. Decluttering is the foundation of a successful listing. Clear out unnecessary items, depersonalize the space, and create an environment where buyers can envision themselves living.
2. Handyman & Contractors
Address minor repairs and updates to ensure your property is in its best possible condition. Engage reliable handymen and contractors to fix leaky faucets, repaint walls, and handle any other necessary tasks. A well-maintained property reflects positively on its overall value.
3. Organizing
Effective organization enhances a property’s presentation. Closets, cabinets, and storage spaces should be neat and tidy, showcasing ample storage potential. Buyers are often drawn to homes that offer functional organization solutions.
4. Staging
Staging transforms properties into aspirational spaces that resonate with buyers. According to the National Association of Realtors (NAR), staged homes tend to sell 87% faster than non-staged homes. This means less time on the market and a quicker path to closing the deal. NAR also reports that staged homes can sell for up to 10% more than non-staged homes. This increase in perceived value can directly impact your bottom line. A study by the Real Estate Staging Association (RESA) found that 81% of buyers can better visualize a property as their future home when it’s staged. This emotional connection is a powerful driver of purchasing decisions. Our staging connections take this a step further, ensuring your property’s unique features are showcased to perfection.
A Case Scenario: Elevating a $1 Million Listing with Staging
Consider a stunning Orange County property listed at $1 million. You’re faced with the choice of investing $10,000 in professional staging.
Scenario A: Without Staging
Without staging, potential buyers might struggle to envision the property’s potential. The property might linger on the market, potentially leading to price reductions and longer carrying costs.
Scenario B: With Staging
Now, imagine investing $10,000 in staging. The property’s features are highlighted, creating an enticing environment that resonates with buyers.
Here’s the breakdown:
List Price: $1,000,000
Staging Investment: $10,000
Staging could lead to a conservative 5% increase in the final sale price, amounting to an additional $50,000. Subtracting the $10,000 staging cost, you’re left with a net gain of $40,000. This illustrates how staging not only enhances your property’s appeal but also potentially greatly impacts your financial return.
5. Landscaping
Orange County’s natural beauty is one of its major attractions. Enhance your property’s curb appeal by investing in landscaping. Well-maintained gardens, vibrant flora, and manicured lawns create a lasting first impression on potential buyers. Our cost-effective landscaping solutions make the exterior of your home “pop,” setting the tone for what’s to come.
Exterior professional photo
6. Professional Photos
Captivating visuals are key to online engagement. We understand this, which is why we provide professional photos for every single listing. High-quality interior and exterior photos highlight the best features and create a lasting impact.
Increased Engagement: According to a study by the National Association of Realtors (NAR), listings that feature multiple high-quality photos receive 118% more online views compared to listings with fewer photos or lower-quality images.
7. Drone Images
Aerial imagery provides a unique perspective of your property’s surroundings. Drone images showcase proximity to amenities, scenic views, and the neighborhood’s charm, giving buyers a comprehensive understanding of the property’s location. Certain areas may be no-fly zones, but when permissible, we provide captivating drone imagery for all listings.
Newport Beach Drone Image
8. Customized Website
Our commitment extends to creating a customized website for your property. Optimized for SEO and featuring virtual tours, this platform immerses potential buyers in your property’s details, leaving a lasting impression.
9. MLS Listing & Open House
Multiple Listing Service (MLS) is a platform that exposes your listing to a wider audience of agents and buyers. Complement the online presence with traditional open house events, offering interested parties an opportunity to experience the property in person.
Higher Sale Price: According to the National Association of Realtors (NAR), homes listed on the MLS tend to sell for about 20% more than those sold by the owner.
Qualified Buyers: MLS listings attract serious buyers actively seeking properties, increasing the chances of securing top dollar.
Competition and Bidding: MLS exposure can lead to multiple offers and competitive bidding, driving the final selling price higher.
Expert Representation: Utilizing the MLS with us positions your property strategically, contributing to higher offers.
Properly bringing a listing to market in Orange County is a multifaceted process that demands attention to detail and a deep understanding of the local real estate landscape. By strategically implementing decluttering, repairs, staging, and engaging visual content, your property can captivate potential buyers and stand out in this competitive market. From stunning photographs to open house events, each step contributes to a comprehensive approach that maximizes your property’s appeal. Embrace these tactics and set the stage for a successful property unveiling in the vibrant Orange County market.
Whether you’re buying, selling, or investing, AskAngie team expertise will guide you through the process seamlessly. Don’t hesitate to reach out and connect with Angie today at 949-338-7408. Your dream property or lucrative investment opportunity awaits – and our team is here to make it happen. Contact us now to begin your journey towards real estate excellence.
Don’t miss out on our upcoming posts! If you’re not already following us on social media, now is the perfect time to connect. Stay updated on the latest trends, tips, and listings by following our page. Your support encourages us to continue providing you with valuable content that empowers your real estate journey.
Have you heard this saying? Time in the market refers to the concept of consistently investing in the stock market or real estate market over a long period of time, rather than trying to predict short-term movements and making trades based on those predictions. Timing the market, on the other hand, involves trying to predict when prices will go up or down in the short term and making trades accordingly.
Time IN the market only works if you select an investment that will be relevant over the long term. This is why we love real estate – people will always need land and a roof over their heads. This is the main reason property continues to appreciate long term – there is always a level of demand. You can’t just pick any property, though. Be diligent about selecting something that will stand the test of time, both location & build-wise.
Choosing the right property:
Location and Accessibility: Choose a property in a well-established and desirable location with convenient access to essential amenities, public transportation, schools, and commercial centers. A prime location maintains its value over time and attracts a steady demand from potential buyers or renters.
Build Quality and Materials: Prioritize properties constructed with high-quality materials and craftsmanship. Well-built structures not only endure the effects of time but also require fewer maintenance expenses in the long run, preserving their appeal and value.
Future Development and Infrastructure: Research the area’s development plans and infrastructure projects. A property that is poised to benefit from future improvements, such as new roads, parks, or community facilities, is more likely to appreciate value and remain relevant over time.
Adaptability and Flexibility: Look for properties with versatile layouts and features that can accommodate changing lifestyle trends. A space that can be easily modified or repurposed to suit evolving needs ensures its long-term relevance and appeal to a broad range of potential occupants.
Resilience to Environmental Factors: Consider the property’s vulnerability to natural disasters and environmental changes. Opt for structures that are designed to withstand local climate conditions, such as earthquakes, floods, or extreme weather. Investing in a property that can endure environmental challenges minimizes the risk of significant damage and devaluation.
Know what to expect with property cycles
According to information available on the California State Board of Equalization website, every neighborhood & city has 4 cycles – it’s good to be familiar with them, so you can ride out any bumps on the road:
Growth: a period during which the area gains in public favor or acceptance.
Stability: a period of equilibrium without significant gains or losses.
Decline: a period of diminishing demand and acceptance.
Renewal: a period of rejuvenation and rebirth of market demand.
Tracking your real estate investments
It’s also critically important to know where your property is at price-wise and watch the numbers just like you would watch your stock portfolio or money market account. Your property value will always fluctuate. We offer informational free reports emailed monthly & recommend you sign up today if you aren’t already receiving similar reports. Our value system takes a comprehensive view of any single-family home in the US – sign up here https://hmbt.co/TTNcDG.
It’s also important to note that trying to time the market is generally considered to be a risky strategy, as it’s extremely difficult to consistently predict short-term market movements. In contrast, time in the market has been shown to be a more reliable way to achieve long-term investment success, as it allows you to take advantage of the natural ups and downs of the market over time.
Here’s a real-life example of a listing we sold for over 2M, purchased for under 500K, and held over time.
Grandma appreciation scenarios can be helpful to consider when thinking about the long-term benefits of owning a home. For example, let’s say you buy a home for $500,000 and the market appreciates at a rate of 5% per year. After 20 years, the value of your home would be about $1.1 million. If you had instead rented for those 20 years and paid an average of $3,500 per month, you would have spent around $840,000 on rent, and you would have nothing to show for it at the end.
In the current market, rates are rising and prices are still high, which can make it a challenging time for first-time homebuyers. However, it’s important to remember that owning a home or land for 20-40 years can have a significant impact on your financial future and retirement. In fact, homeownership has been shown to be a key factor in building wealth over the long term, as homes tend to appreciate in value over time.
If you’re considering buying your first home but are worried about the cost, it may be helpful to work with a financial advisor or mortgage professional to explore your options. Derek Beisner, Certified Mortgage Planner, can help with a rent vs own analysis that will give you some research and can provide you with more information about the benefits of homeownership. If you don’t have the down payment, you may want to consider the Vow2Save program, which can help you save for a down payment on your first home or investment property.
Ultimately, it’s never a bad time to buy your first home, as long as you do your research, work with a professional, and carefully consider your financial situation and long-term goals. If you’re ready to take the next step, don’t hesitate to reach out to Angie for a no-obligation consultation about buying your first home or investment property at 949-338-7408.
Share your real estate success stories
We’d love to hear your stories and insights about how time has shaped your experiences IN the market. Share your anecdotes, observations, and lessons learned in the comments below. Your point of view could offer valuable understanding to individuals navigating the realm of real estate!
As we delve into the second half of 2023, we must base our expectations on solid data rather than opinions or noise. Following the market and analyzing reliable data sources is key to understanding the projected trends. One such valuable resource is Reports on Housing, which offers an insightful analysis based on robust statistical information. Recently, Steven Thomas of Reports on Housing shared his perspectives on the Orange County 2023 real estate market during a visit to our Newport Beach office. Let’s explore some of the key takeaways from his presentation.
Interest Rates and the Debt Ceiling: Interest rates continue to be a significant factor impacting the current real estate market. The debt ceiling presents a challenge to the economy. In the past, when the debt ceiling was reduced in 2011, the market experienced an immediate boost. Therefore, there is hope that the Federal Reserve will take measures to address the debt ceiling again. It’s worth noting that when short-term rates rise, long-term rates often decline.
Defining the New Normal: We are still in the process of settling into the “new normal,” and this is evident in the real estate market. Buyers are capping their purchase prices lower than what was observed in 2020 and 2021. This adjustment reflects the evolving market conditions and buyers’ response to affordability and changing interest rates.
Commercial Market Impact: Unlike the residential market, commercial real estate is expected to experience a downturn due to different loan terms. However, residential sales currently maintain the lowest delinquency rate since the inception of Reports on Housing’s tracking. Barring any major incidents, there is no expectation of a short sale or foreclosure market in the near future for the residential market. Commercial real estate is projected to have a much bumpier road.
The “Slowcession” and Interest Rates: Rather than predicting an upcoming recession, Steven coined the term “Slowcession” to describe the anticipated economic environment. This slowcession would involve interest rates ranging from 4.75% to 5.75%. Presently, rates stand at 7%. Economists generally agree that interest rates will eventually decrease; the question is when. Hence, it is advisable to focus on finding the right house while keeping an eye on interest rate fluctuations. The target will continue to move.
Tandem Relationship: 10-Year Treasury and Mortgage Rates: A noteworthy insight from Steven is the 50-year tandem relationship between the 10-year treasury and mortgage rates. Monitoring the 10-year treasury can provide valuable insights into the future direction of interest rates, as the two usually dance together.
No Financial Crisis Expected: Statistics also express consumer confidence that a financial crisis is not imminent. Although some regional banks may undergo absorption, this is considered a typical occurrence in the industry. Recent bank runs have not seriously impacted our Orange County real estate market.
Supply Crisis and Price Stability: The current real estate market in Orange County faces a supply crisis, with historically low inventory levels. Even during the lockdown period, there was more inventory available than there is now! This scarcity of available homes is the main reason prices remain high despite the increase in interest rates. The peak of available inventory is expected in July, after which it will continue to decrease.
Opportunities for Buyers: It is currently advantageous, but an uphill battle, to be a buyer in today’s OC market. Renters, in particular, should consider transitioning to homeownership, as paying rent does not contribute to building equity. High rates have sidelined some buyers, so competition is not as fierce as in 2020-2022. But there is still plenty of competition, in fact, at least 2 buyers statistically for every home available. It is expected if interest rates decline in the future, it will attract more buyers back to the market, resulting in increased competition. Therefore, it’s advisable for potential buyers to act promptly and capitalize on the current conditions…there are not necessarily sunnier skies for buyers in the near future.
Sales Cycles and Demand: The typical sales cycle in Orange County follows a pattern: spring is the best time for sellers, followed by summer. It’s ALWAYS safest to be in escrow by July 31st, as fall is the third most active season, and winter is relatively slower.
Buyer Trends: Currently, buyers are more focused on securing favorable loan terms rather than their dream home, and logic often outweighs desire. Entry-level homes are highly sought-after, but bidding wars make it challenging for buyers to acquire them. Balancing the market would require an increase in inventory to accommodate the demand from millennials and compete with downsizing boomers. Buyers are ‘playing it safe’ and frequently purchase a bit below the level they qualify for.
Affordability and Market Time: The average median payment for California properties historically stood at $3,590 per month. Presently, that figure has risen to $7,290 per month. This dramatic increase highlights the reduced affordability caused by rising prices and interest rates. Additionally, the market time for Orange County properties is currently at 39 days, indicating an intense seller’s market, though less severe than the previous year. Somehow buyers are still absorbing current prices.
The second half of 2023 is expected to outperform the same period in 2022, with an increase in sales predicted for 2024. Both buyers and sellers need to maintain the right mindset and exercise patience in this dynamic market. Rental demand remains high, and rents are unlikely to decrease, making homeownership an appealing long-term investment. If you know someone who is renting, encourage them to explore the benefits of owning real estate and building equity. You can always reach out to Angie at 949-338-7408 for guidance & tools!
By focusing on reliable data and insights, we can project the real estate market for the rest of 2023. Steven Thomas’s presentation provided valuable charts & perspectives on the Orange County market, emphasizing the importance of monitoring interest rates, addressing supply crises, and making informed decisions as buyers or sellers. As the year progresses, maintaining a patient and adaptable mindset will be crucial for navigating the ever-evolving real estate landscape.
Ready to navigate the 2023 real estate market? Whether you’re a buyer or seller, seize the current opportunities and make informed decisions. Connect with us today to get expert guidance and achieve your real estate goals. Don’t miss out on the potential benefits awaiting you in the market. Fill out the form below or text for an appointment:
Laguna Woods, California is a popular community located in Orange County, known for its mild climate, scenic views, and close proximity to the Pacific Ocean. If you’re considering purchasing a property in Laguna Woods, cooperative ownership is a popular option. However, there are important things to know before buying a co-op property in Laguna Woods.
One of the key things to know is that co-op properties in Laguna Woods must be purchased with all cash, as there are currently no loans available for stock cooperatives. This means that you’ll need to have the necessary funds available to complete the purchase and show proper proof of funds (POF).
In addition, it’s important to note that Laguna Woods Village has a strict leasing process. Buying a co-op property purely as an investment property may not align with the community’s preferences and guidelines. It’s important to understand and respect the community’s emphasis on owner-occupied residences.
Another important consideration when buying a co-op property in Laguna Woods is the higher HOA fees. However, co-op properties include your water, trash, and basic cable, which can make expenses lower overall. It’s important to factor in these fees when calculating your budget for purchasing and owning a co-op property.
When you first buy a co-op property in Laguna Woods, you’re not buying property, you’re technically buying stock in the cooperative corporation. This can make pricing more difficult to determine, as there are no tax records for the co-ops. It’s to connect with a real estate team like ours who know Laguna Woods & can guide you through the buying process.
Additionally, there are certain gate access and other nuances that an experienced agent will be familiar with, both inside and outside the gates.
It’s also important to note that if you want to do upgrades on your co-op in Laguna Woods, the previous owner may have ‘upgraded’ you out of their system. This means that almost every item from appliances to flooring is covered by the corporation that owns the co-op, but if you upgrade outside of the approved basics, it voids that item out of the umbrella of coverage. Disclosing any upgrades appropriately when buying or selling is important.
Laguna Woods offers docent tours which are a smart idea to take if you’re considering moving to the community, and book up well in advance, so plan accordingly. These tours showcase the community’s clubhouses, pools, clubs, amenities, and golf courses, all of which are a big draw for many buyers.
Laguna Woods Village is also a community that many out-of-state children are considering for their aging parents, so understanding the ins and outs of Laguna Woods co-op ownership can be helpful.
Buying a co-op property in Laguna Woods can be a great option for those looking for an affordable and community-oriented housing option. By understanding:
the income
financial requirements
HOA fees
stock ownership structure
nuances of upgrades and disclosures
taking a docent tour of the community
You’ll be well-equipped to make an informed decision about whether a co-op property in Laguna Woods is right for you.
If you’re ready to start your search for Laguna Woods properties, click here to explore available listings. You can always reach out to Angie at 949-338-7408 who can guide you through the buying process. Contact her today or comment below to learn more about available properties and to start your journey to owning a home in Laguna Woods.
Buying a home is a major life event that can be both exciting and daunting at the same time. The process can take months, and it’s not uncommon for homebuyers to experience a range of emotions along the way. In this blog, we’ll explore the emotional roller coaster of buying a home and offer some tips on how to manage the ups and downs.
Desire
The desire to have a better place, a new chapter in life, or more or less space can be a powerful motivator for homebuyers. It is the starting point of the home-buying journey and is often accompanied by feelings of excitement and anticipation.
Excitement
“Excited to finally own my own home! Can’t wait to create my own space and see what this new adventure brings.” The home-buying process often starts with excitement. You’ve decided to take the leap and buy a home, and the possibilities seem endless. You start browsing online listings, imagining yourself living in the different homes you see. You may start to envision your future in your new home, from hosting dinner parties to raising a family.
Anxiety
“Will I be able to pay my payments & still eat?” As you start to seriously consider buying a home, anxiety can set in. You may worry about whether you can afford the homes you like, whether you’ll be able to find a home in a desirable neighborhood, and whether you’ll be able to secure financing. You may also worry about whether you’re making the right decision, and whether you’ll be happy with your choice in the long term.
Frustration
“This is so frustrating! Every home I like is either too expensive or already taken. And the whole process is taking forever! I had no idea it would be this complicated.” As you start to view homes in person and make offers, you may experience frustration. You may find that the homes you like are out of your price range or have already been sold. You may also find that the home-buying process is more complicated and time-consuming than you anticipated.
Doubt
“I could never buy my own place” As you start the process of buying a home, doubts can start to creep in, and you might question whether you can afford to buy your own place. This feeling of doubt can be overwhelming, and it’s easy to feel discouraged.
Exposed
“Damn I’m in the financial fishbowl with this preapproval” After you have been pre-approved for a loan, you might feel like you are in a financial fishbowl. You have to share all your financial information with the lender, and this can make you feel exposed and vulnerable.
Disappointment
“Nothing in my price range” As you continue searching for homes, you might find that nothing is within your price range. This can lead to feelings of disappointment and frustration.
Hope
“Wow found a keeper!” Finally, you find a house that you love, and it’s within your budget. This feeling of hope can be exhilarating, and you might start to feel like you’re getting closer to achieving your dream.
Despair
“Keeper thought my offer was a loser” Your hopes can come crashing down if the seller doesn’t accept your offer. This feeling of despair can be crushing, and you might start to wonder if you’ll ever find the right house.
Fear
“Might have to pay over my budget and comfort zone for what I want” If you do find the right house, you might have to pay more than you’re comfortable with. This feeling of fear can be overwhelming, and you might start to wonder if you’re making the right decision.
Determination
“I found the one I wanted and I’m getting it this time” Despite the fear, you might find yourself determined to get the house you want. This feeling of determination can be powerful and can help you overcome any obstacles that come your way.
Elation
“I can’t believe it! My offer was accepted and I’m going to be a homeowner!” When you finally find the perfect home and your offer is accepted, you’ll likely experience a wave of elation. You’ll feel relieved that the search is over, excited about your new home, and proud that you were able to secure it.
Spiritual
“Praying for the sellers to accept my offer. Praying I’m not making a bad investment. Praying I’m being a good steward.” As the home-buying process becomes more intense, you might find yourself turning to spirituality for guidance and support.
Terror
“Omg, my bank account is leaving me” Elation can quickly turn to terror when you realize how much money you’re about to spend. This feeling of terror can be intense, and sometimes this causes to wonder if you’re making a mistake.
Lost
“What am I even doing? How am I going to actually DO this? So many moving parts.” As you continue through navigate the home-buying process, you might feel lost and overwhelmed. There are so many moving parts, and it can be difficult to know what to do next. This is where a support network of quality professionals, including your Realtor, come in helpful.
Indignant
“The lender wants what from me? Are you serious?” At times, you might feel indignant about the demands the lender is making. This feeling of indignation can be frustrating, and you might start to wonder if you’re being taken advantage of.
Sad
“The inspector called my baby ugly, and now all I can think about are the flaws.” Sadness can often set in when the inspector points out flaws in your dream home. After all, you’ve spent months, maybe even years, searching for the perfect property, only to have someone else call your baby ugly. It can be tough to see past the issues and focus on the good things about the house.
Afraid
“I don’t know how to fix the issues with this place, and I’m already spending all my cash.” Fear can also be a constant companion when buying a home. You may worry that you don’t know how to fix the problems with the house, or that you’re spending all your hard-earned money on a property that isn’t perfect. The fear of the unknown can be overwhelming, leaving you wondering if you’re making the right decision.
Torn
“Should I spend all my money on a place that is far from perfect?” Feeling torn is another common emotion that many homebuyers experience. You may wonder if you should spend all your money on a property that’s far from perfect, or if you should keep looking for something better. It can be challenging to balance your desires with your budget and find the right compromise.
Hurt
“The seller won’t give me the credit I asked for” Hurt can also set in when the seller won’t give you the credit you asked for. It can feel like they’re not taking your needs into account, and it can be challenging to move forward when you feel like you’re not being heard.
Confused & Defensive
“Who should I call for quotes that are trustworthy?” Confusion and defensiveness can arise when trying to find trustworthy quotes for repairs and maintenance. With so many options out there, it can be challenging to know who to trust. You may feel like you’re constantly on the defensive, trying to protect yourself from being taken advantage of.
Annoyed
“Why is the appraisal back late? Why are the handyman quotes back so late or so high?” Annoyance is a common emotion when the appraisal or handyman quotes come back late or too high. It can be frustrating when things don’t go according to plan, and you’re left waiting for someone else to make a decision or provide information.
Exhausted
“I don’t feel like getting multiple quotes or scheduling more inspections or appointments. I already gave you that information, now you need it again?” Exhaustion can set in when you’re constantly getting multiple quotes, scheduling appointments, and providing information. It can feel like a never-ending cycle, leaving you feeling drained and frustrated.
Focused
“Ok…it’s just a few more things. I haven’t come this far to come this far. I got this.” However, despite all the challenges, it’s essential to remain focused on the end goal. You’ve come this far, and you can’t give up now. You have to keep pushing forward, even when things seem difficult.
Devastated
“I might not get the loan. I did everything they told me and now they want more.” Feeling devastated can be overwhelming when you think you might not get the loan. You may have done everything that’s been asked of you, only to be told that more is needed. It can feel like you’re hitting a brick wall, and there’s no way around it. This is why it is so important to go through the full loan approval process BEFORE opening up escrow.
Depressed
“Ugh, this isn’t happening and I wasted my time. I wasted my money. I wasted other people’s time.” Depression can set in when things aren’t going as planned. You may feel like you’re wasting your time and money, and that you’re letting other people down.
Pist off
“Why me? Everyone else seems to get a loan and their own place? Wtf?” Feeling pist off is another common emotion that many homebuyers experience. It can be frustrating when it seems like everyone else is getting a loan and their own place, and you’re left wondering why you’re having so much trouble.
Optimistic
“Wow a new option popped up and this may actually happen” But, there’s always a light at the end of the tunnel. Feeling optimistic when a new option pops up can be a game-changer. Suddenly, everything seems possible again, and you’re filled with renewed hope.
Indifferent
“I’m mentally tired. Whatever happens at this point. So over it and totally afraid to be excited after all these bumps in the road.” Feeling indifferent can also be a coping mechanism when you’re mentally exhausted. It can be tough to get excited after all the bumps in the road, and you may feel like whatever happens, happens at this point.
Worried
“That is the most money I have ever wired out of my bank account. Ever. What if the wire doesn’t get there? What if I lose everything to cyber fraud??” Worry is another common emotion that many homebuyers experience when they wire the most significant amount of money they’ve ever wired out of their bank account.
Apprehension
“So much to do before closing and overwhelming. Worrying that something will go wrong and the deal will fall apart.” Once the initial excitement wears off, you may start to feel apprehensive. You’ll likely be faced with a long list of tasks to complete before closing, from scheduling inspections to securing financing. You may worry that something will go wrong and the deal will fall through.
Enthusiastic
“Yay they got the wire got there, I think this is actually happening!” You have been house hunting for months, and finally found the perfect home. You made an offer, went through the inspection process, and the financing was approved. Now, the wire has been received and you are filled with excitement. You are about to become a homeowner!
Empowered
“I DID it! We closed escrow! I bought a house!!” After all the hurdles you have faced, you finally closed the escrow and bought the house. You are filled with a sense of empowerment and pride in yourself. You did it! You bought a house!
Anticipation
“So many things I want to do to make it mine.” Now that you have a place of your own, you can’t wait to put your personal touch on it. You start to think about all the things you want to do to make it yours. Maybe a new coat of paint, new furniture, or landscaping the backyard. The anticipation of turning your house into a home is exhilarating.
Anxiety
“Will I be able to pay my payments & still eat?” As the first mortgage payment comes due, you start to feel a bit of anxiety. Will you be able to make the payments and still have enough money to live on? The fear of not being able to afford your dream home is nerve-wracking, but it motivates you to be smart with your money.
Relief
“It feels like a huge weight has been lifted off my shoulders now that we’ve closed on our new home.” When you finally close on your new home, you’ll likely feel a sense of relief. The process is over, and you’ve successfully purchased a home. You can start planning your move and begin to settle into your new space.
Thankful
“I’m getting in the groove with my payments and property upgrades.” As time goes by, you become more comfortable with your new financial responsibilities. You are thankful for the stability and security that comes with owning a home. You also start to enjoy making property upgrades and see the value of your investment increase.
Grateful
“Love my new place.” As you settle into your new home, you feel grateful for all that it provides. You love the space, the community, and the memories that you are creating. You are grateful for the decision you made to invest in your future.
Fast forward 10 years…..
Satisfaction
“My equity has significantly increased and I’ve been paying down my mortgage.” After a decade of ownership, you are proud of the financial investment you have made. Your equity has significantly increased, and you have paid down your mortgage. Your home has become one of your biggest assets, and it provides a sense of security for your future.
Renewed
“I’m ready to ride this emotional roller coaster again for an investment that secures my family legacy.” With the success of your first home purchase, you are now ready to ride the emotional roller coaster again. You are eager to invest in another property that will secure your family’s legacy. The thrill of the home-buying process is calling, and you are ready to embark on a new adventure.
And so the cycle continues.
The emotional roller coaster of buying a home never ends. But with each ride, you become more experienced, more empowered, and more grateful for the opportunities that homeownership provides. Despite the ups and downs, owning a home is a life-changing experience that is worth every emotion.
Tips for Managing the Emotional Roller Coaster
The home-buying process can be overwhelming, but there are things you can do to manage your emotions along the way:
Set realistic expectations. Understand that the home-buying process is rarely straightforward, and it’s normal to experience a range of emotions.
Communicate with your real estate agent. Your agent can help you navigate the ups and downs of the process and provide guidance and support.
Lean on your support system. Buying a home is a big decision, and it can be helpful to talk to friends and family members who have been through the process before.
Take care of yourself. Self-care is important during any stressful time, and the home-buying process is no exception. Take breaks when you need to, eat healthy meals, exercise, and get plenty of rest.
Riding an emotional roller coaster when buying a home is a normal & natural part of the process. Remember you are not alone. By understanding that you’ll likely experience a range of emotions and taking steps to manage them, you can make the home-buying process more obtainable and enjoyable.
If you’re feeling overwhelmed by the emotional roller coaster of buying a home, remember that you’re not alone. We would love to hear about your own experience and how you were able to navigate the process with more ease. Please leave a comment below sharing your tips and tricks with the community. And don’t forget, if you need guidance through the process, you can always reach out to Angie at 949-338-7408, who can provide you with professional advice and support.
Nestled in the serene wilderness of the Pacific Northwest, Ponderosa Lodge was a beloved retreat for nature lovers and adventure seekers alike. With its rustic charm, cozy motel rooms, and breathtaking views, it was a place where memories were made and cherished for generations. However, tragedy struck one month ago in the middle of a large snowstorm when a devastating fire engulfed the lodge, leaving behind nothing but ashes and memories.
The fire that consumed Ponderosa Lodge was a heartbreaking event for the community and those who held cherished memories of the place close to their hearts. The loss was felt deeply by the owners, staff, and loyal guests who had frequented the lodge over the years.
One particular memory that stands out is the story of Smokey the Cat. Smokey was a beloved feline mascot of Ponderosa Lodge who had won the hearts of visitors and staff alike with his friendly and playful nature. He would often greet guests with a friendly purr. Smokey’s presence brought joy and comfort to many, and his loss in the fire was a heart-wrenching blow to the lodge’s community.
In the wake of the devastating fire, the owners of Ponderosa Lodge have been overwhelmed by the outpouring of support from the community and beyond. A GoFundMe campaign was set up to help rebuild and restore the lodge to its former glory. The campaign, which can be found at https://gofund.me/99f6ea20, has garnered donations from people who want to see Ponderosa Lodge rise from the ashes and continue to be a special place for generations to come.
As the owners and staff of Ponderosa Lodge work tirelessly to rebuild, they have also come up with creative ways to keep the memories of the lodge alive. The virtual tour, which can be found at HomeBuyingRegistry YouTube channel, offers a glimpse into the lodge’s past and showcases the beautiful landscapes and unique features that made Ponderosa Lodge a beloved destination.
The story of Ponderosa Lodge is not just one of loss, but also of resilience and community spirit. Despite the devastating fire, the owners and staff remain committed to rebuilding and preserving the legacy of Ponderosa Lodge. The lodge has been a special place for many, and the memories created there will always hold a special place in the hearts of those who have experienced its magic.
If you would like to support the rebuilding efforts of Ponderosa Lodge, you can donate to the GoFundMe campaign at https://gofund.me/99f6ea20. Your contribution will go a long way in helping to restore this beloved lodge and create new memories for generations to come.
As the owners and staff of Ponderosa Lodge continue their journey of rebuilding, they are grateful for the support and love showed by the community and beyond. Ponderosa Lodge may have suffered a loss, but its spirit and legacy live on in the hearts of those who have been touched by its magic. Let’s remember the fond memories of Ponderosa Lodge, and together, let us help rebuild and restore this special place for future generations to enjoy.
Investing in real estate has always been a lucrative opportunity for those looking to build their wealth. One of the more popular ways to invest in real estate is through purchasing auction properties, which are typically sold at a discount. However, if you are an investor looking to purchase an auction property in California, it’s important to be aware of the new foreclosure laws that have been put in place.
New Foreclosure Laws in California Give Tenants and Former Homeowners More Power in the Auction Property Market
In California, new laws have recently been passed that give tenants and former homeowners the right to redeem foreclosed properties after they go up for auction. These laws, mainly AB 1837 and SB 1079, are designed to provide additional protections for homeowners facing foreclosure.
Under this new law, if a property is foreclosed upon and is set to be sold at auction, the tenant and former owner have the right to match the highest bid at the auction. This means that if you are an investor looking to purchase an auction property in California, you may be outbid by the tenant or former owner.
This new law is significant because it gives tenants and former homeowners more power in the foreclosure process. Prior to this law, tenants and former homeowners had very little say in the matter and were often left out of the process entirely. This meant that investors had a much easier time purchasing auction properties in California, as they faced less competition.
As an investor looking to purchase an auction property in California, it’s important to understand the implications of this new law. While it does make it more difficult for investors to purchase auction properties, it also means that there may be less competition overall. Additionally, it’s important to keep in mind that this law only applies to foreclosed properties that are sold at auction. If you are interested in purchasing a non-foreclosed property, you will not be subject to these new regulations.
Overall, the new foreclosure laws in California are important for investors who are devising a strategy for purchasing auction properties. It will be very different than our last real estate cycle. While it may make the process more challenging, it also provides additional protections for tenants and former homeowners. As with any investment, it’s important to do your due diligence and understand all of the relevant laws and regulations before making a purchase.
If you’re an investor looking to navigate California’s new foreclosure laws, it’s crucial to have a thorough understanding of the Assembly Bill (AB) 1837. To ensure that you’re up to date with the latest rules and regulations, we strongly advise you to read up on the full details by visiting trusted sources. By taking this step, you’ll be equipped with the knowledge you need to make informed decisions and avoid costly mistakes.
A very important part to note in the bill is that trustees are authorized to consider offers from specific categories of eligible bidders during the first 30 days of a property’s listing, including:
prospective owner-occupants,
nonprofit corporations,
California community land trusts,
limited-equity housing operatives, and
public entities
New Foreclosure Law in California Prohibits Bundling of Homes, Affecting Investors in Auction Property Market
In addition, according to SB 1079, during a foreclosure auction, sellers are prohibited from bundling homes together and selling them to a single buyer. Because foreclosure sales cannot be ‘bundled’ and sold in large groups anymore, that will also be a big change investors need to know about.
If you’re interested in purchasing an auction or foreclosure property, call or text Angie at 949-338-7408 or fill out the form below. We have a wide range of properties available, and we’re always happy to provide guidance and support to investors like you. Don’t hesitate though to reach out to us for assistance with your next real estate investment.
The California housing market is always changing, and it’s important to stay ahead of the trends if you want to be successful on your real estate journey. That’s why we were so excited to have Jordan Levine, Chief Economist at C.A.R., give a can’t-miss forecast of the housing market for 2023 at the ReImagine conference last week.
This valuable data will provide insight into today’s pressing housing issues that may impact your equity and your largest investment in the future. It’s essential information for anyone who wants to stay ahead of the curve in California real estate!
Forecast: Chance of Rain in seller’s paradise
Our economy is getting hit with a lot right now, so it’s important to keep an eye out for the clouds! We just finished years of sunny skies in terms of equity and appreciation, but the buyers running after starved inventory have been a bit burnt out.. and now loan rates have hit them with a huge gust of wind on top of it.
Rates significantly affect affordability and mortgage payments – here’s an image that shows just how much.
Low low interest rates the last 10 years had allowed buyers to continually increase purchase prices, and still have an affordable payment. It looks like that trend is now dissolving, which brings cloudy skies to our CA real estate market.
If you’re looking at the big picture, our 2022 Jan-June market was white hot, and 2021 had the highest volume of California home sales in an entire decade, over 450,000 homes were sold. 3 out of 4 homes sold over the asking price in 2021. The average days on the market was 7, when it’s historically 30-90 days. This type of supply & demand is not healthy, and it had to ‘simmer down’ eventually. Welp… here we are. We are catching our breath; including agents and lenders who have been pelted the last 2 years.
What Does This Mean for CA Buyers and Sellers?
If sellers are confused why buyers are now offering less than the asking price, the interest rate boost adds an additional $1600-1700 per month for the EXACT SAME HOME.
If buyers can’t qualify for the same amount as they could previously, that will affect our property prices. We are now at less than 20% of individuals in California who can afford a home. It’s not as bad as we have been, but it would still be nice if more people had homeownership as an option.
Warning: Rate pressure is building. Mortgage Rates might get worse.
Because rates may go even higher, its critical to price your homes right and maintain realistic expectations. Because every local market is different, what you see on national news is not necessary YOUR reality. And what you see in the newspapers… remember gloom & doom headlines sell, and the news needs subscriptions. Don’t get caught thinking Southern California prices are on a cliff, when we are just panting on the side of the road from exhaustion. Properly priced homes will always sell.
A graph of California median home prices from 1968 – 2022. Note that although there are always dips, the slope of the line (aka equity & appreciation) is always positive.
Fact: The sky is not falling
It’s not projected we are heading into a foreclosure market. Homeowners still have over 122K average in wealth, and renters are no better than they were 40 years ago, with a 6K average net worth. The total net worth of consumers is down right now, so we should expect some pushback. Now is NOT the market for Brother in law effect…’my BIL said xyz’. Now is the market to look to the true professionals and experts to guide you. The news outlets are also not experts. Active real estate agents and mortgage lenders are.
Forecast: What does the future for Orange County real estate look like?
Here’s a pic of Jordan’s best and worst case rate projections for the 2023 housing market in California.
Historically, our new rates are still low, and we should be looking at them as the new normal. According to multiple experts, we shouldn’t expect rates to go back down again in the near future. It’s still a great time to buy a home if you’re renting, and the renters were some of the most ignored in our previous market, so you will see them come back into the fray. Buyers who were at the cusp of affordability may unfortunately be priced out of the market, or they will be offering lower than asking price because they are literally chasing the property that was affordable with 6 month ago rates.
Sellers who listed 30-100K over the previous summer comps will likely have to reduce price or face their listing expiring. It’s a good idea to research sales in the community (comps) the last 90 days, and see what the median comp range is. Listing at the top of your comp range with the current market temperature could cause the home to sit frozen on the market. Not to worry though, properly priced homes in Southern California will always sell. Make sure you work with a seasoned professional and list at the right price from day 1, or you could suffer. Discount and ibuying brokerages don’t do well in this type of market – beware!
Many investors, seeing the writing on the wall with interest rates, are putting 1031 exchanges in motion, and adjusting portfolios accordingly. Some are tiring of strict Los Angeles rent control and housing regulations, and are opting to relocate investments to neighboring counties or even other states that don’t impress as many regulations or red tape.
If you’re curious about the range of your home’s worth, including short term and long term rental rate averages, click here: https://hmbt.co/TTNcDG – If you would like to receive monthly Orange County and Los Angeles real estate reports simply sign in to the link above for a free account – it’s that easy! Angie is only a call or text away if you would like a full broker price opinion on your home or investment property 949-338-7408.
Orange County Real Estate Success 