Home Seller Tips
INVITATION: Citrus College Home Fair
Interested in buying a home in Southern California but don’t know how? Would you like safe and solid info on Real Estate Investing or Market reports and trends? We’ve got you covered with free sessions at Citrus College on April 23rd.
The event will be held from 11am – 3pm with an hour lunch break. There are 3 different sessions, each with 4 classes to choose from ranging from flipping to first time buying. We feel honored to be asked to teach 2 classes – Investing and Market Report. Come join us and learn how to buy real estate! The first 100 registrations receive a free lunch on Citrus Real Estate Club – just sign up below.
Yes, sign me up for Citrus College’s Home Fair on April 23rd!
Selling your home? 29 Essential Tips.
Selling a home in Southern California is no small job. There are hundreds of items that could be attended to – but which are most important?
Smart sellers get the inside scoop early – fill out the form below to receive a comprehensive report: 29 Essential Tips that Get Homes Sold FAST & for Top Dollar.
In addition, you’ll receive the latest Orange County Reports On Housing update. Find out out the market temperature, average days it takes to sell, and how many homes are on the market in your city.
A combined $59 value that could net you thousands is yours free by filling out the form below. Get this expert advice at your fingertips – guaranteed to your door within 7 days!
Become an Automatic Millionaire Homeowner
Ever wonder how people really come up in real estate? It doesn’t require a huge amount of capital, brains, or hard work. The process is surprisingly simple, and we’ll teach you the jist in just half an hour.
The best thing about becoming a millionaire homeowner is that anyone can do it.
Learn How at Homeownership Day Jan 14th, 2017
We’ll teach you the simple process based off David Bach’s “Automatic Millionaire Homeowner” book in an easy, 1/2 hour session at Chapman University from 12:15 – 12:45pm.
This is a class for normal people who would like to do extraordinary things in real estate while maintaining their existing lifestyle, career, and family.
The Automatic Millionaire Homeowner is not a get-rich-quick scheme; everything is done on your individual timeline, and without a membership in some expensive group or school. The only money you spend will be on real estate itself. Simple concepts that once applied, will bring you huge returns regardless of where you own property. And the younger you have this knowledge and you start…the better.
Register below for this free event – space is limited!
More about Homeownership Day / OC Home Fair
This yearly event is a collaborative between Chapman University, Orange County Young Professionals Network, OC Register, and non-profits VAREP and NeighborWorks OC designed to bring you honest real estate information with no pressure or gimmicks.
There will be 4 different sessions, each with 5 classes to choose from. Attendees enjoy a ‘choose your own adventure’ style and pick the classes that interest them most. Instructors are all active experts in the industry volunteering their time to benefit our community. Visit www.OCHomeFair.com for the full class list and session times.
Where: Chapman University’s Beckman Hall 1 University Dr, Orange, CA 92866
When: January 14th, 2017 from 10am – 1pm
Cost: free
Orange County All Inclusive Trust Deeds (AITDs)
What is an AITD? An All Inclusive Trust Deed is basically when the buyer takes over the seller’s existing loan. And NO, it doesn’t have to be an ‘assumable loan’ … The current lender is actually not even notified!
Who Are Good Candidates for AITDs?
As a buyer, you could use AITD as an avenue if you cannot qualify for a traditional loan. If you’re a seller, it’s an option if you don’t want to short sale, or if you have a fabulous loan that you would like to transfer to a family member. Another time an AITD could save the day is if you are a seller and your HOA is in litigation, or there is some type of situation causing purchase loans in your community to get denied.
How do AITD Transactions Work?
With an AITD, most aspects are the same as a normal Orange County real estate transaction. Instead of a traditional lender involved, the escrow company draws up the paperwork and usually collects the payments as ‘the manager’, which they then send over to the existing lender on buyer & seller’s behalf.
AITD allows you to make your own qualification rules, which is pretty neat! You don’t necessarily have to worry about credit history, scores, or capital gains taxes (if it’s not your primary residence) should you go this route.
If you’re thinking of doing an AITD, make sure to record the grant deed as well. It’s better for everyone. Especially if you are the buyer, because then you can technically write off the mortgage interest.
A great company to use for this process locally in OC is Mission Country Escrow. Katie the owner spoke to us about it today, and they have been doing AITD’s in Orange County for 30 years. If you’re thinking of doing one, definitely reach out to them.
Questions To Ask When Doing an AITD
- Loan amount: is it a ‘mirror image’ of the seller’s current loan, or if not, what interest rate will be charged?
- Down payment: is the buyer putting funds down, and if so, how much?
- Length: what is the length of the AITD and are there any extension options?
- HOA: does the property have a Homeowner’s Association?
- Commissions & closing costs: is the typical ‘each to pay own’ presiding, or who is paying?
- Loans: how many does the seller currently have, and are they all current?
All Inclusive Trust Deed Risks
Of course, there are plenty of risks too. Technically, the lender could call the loan due & payable because the owner transferred. However, the chances of that happening (unless there’s a late payment) are very slim.
Furthermore, we had Steve Fink, real estate attorney discuss advantages & disadvantages of AITD. Honestly, there are a ton of risks involved, and these AITD transactions should be done only in very special cases and with extreme caution. Always use a professional, and get your facts!
If you’d like a personal introduction or have questions about AITD’s, just call Angie at 949-338-7408, tweet @AngieWeeks, or fill out the form below – we’ll be sure to connect you with trusted professionals to protect your interest!
Got an Ugly Duck Property to Sell?
It’s common knowledge that you’ll get the most for a property when it’s upgraded, staged, and correctly marketed. But for some Orange County home sellers, this isn’t an option. Sometimes there was a problem insurance didn’t cover, sometimes the property was inherited and needs 40 years of updates, or other times there is a divorce or a death that requires a fast move. Whatever your case may be, there are buyers out there who want to exchange your ‘problem child’ for quick cash.
This week, we interviewed one of our investors to learn a little more about the types of property she targets. She told me “Angie, we buy other people’s problems.” Here’s a deeper look into those problem homes and how an investor or all-cash buyer may be your solution to avoid headaches.
Southern California Hoarder Homes
If you’ve got a hoarder home on your hands, definitely consider your time and cost to clean it out. The process can take weeks, even months, especially if you have an emotional connection to any of the items inside. On top of that… under all the clutter is probably some deferred maintenance waiting as well. Rather than going to market with today’s buyers who all like everything clean and new, it may be best to strike a deal with an investor who will take the home as-is.
The Family Property
You’ve had Thanksgiving & plenty of holiday parties here, and over the years your parents haven’t had any garage sales, and they have kept every memory packed away in the attic and 4+ bedrooms. Now it’s time to move them to a condo or assisted living facility, but what to do with all this STUFF?
It’s not a problem for an investor. She says:
“…We purchased a property earlier this year. It was from an agent who had a client that she knew the whole family, and the mom had to go into a home. The kids did not want to deal with all of the stuff in the house, they just came and took family photos and a few things. We bought it as she left it – full of her things. We donated belongings to charity and then proceeded with the work.
As a matter of fact, the last several we have bought have been similar situations – that the agent knew the family and they just wanted a quick cash sale. It made it easy for both sides to sell before the house ever hit the MLS.”
The Money Pit
Ever tried to be an investor and failed? Ran out of money, time, or resources before the flip was done? It happens, more than you may realize. Especially with all the flipping shows out there right now! If you’re ready to throw in the towel on problems with the city, or a red tagged, unfinished construction, you’ll probably NEED to find a cash buyer or investor. Lenders won’t typically loan on partially completed construction.
The Get Me Out NOW Divorce
Sometimes, you just want out. You have other things on your mind. You don’t want to deal with a buyer whining about repairs, or people traipsing through your home when you’re trying to pack up and move out. And you definitely don’t want to sit with your future in limbo waiting for the lender who promises the world… but delays at every corner. Nasty divorces are a perfect fit for a cash sale; we’ve all got a story on that one. Sometimes it’s best to cut your losses and move forward on a new path. Like now.
The Residential Zoo
Ever walked into a home with too many animals? Barf. Ever try to sell a home with pet smells? Good luck! Homes that had a lot of animals living in them, that were not taken care of, can require a lot of time and attention to air out. Plus, you’ve got the unfortunate situations that have feces inches deep on every surface including walls…damage to doors and baseboards from scratching… definitely a candidate for the investor buyer.
The scenarios are endless, but for every home there is a buyer. It just may not be the traditional kind. If you’ve got a challenge on your hands, give the AskAngie team a call at 949-338-7408 or fill out the form below to schedule a consultation on the best way for you to sell without headaches.
Read Full Post | Make a Comment ( None so far )
Orange County Solar – will it save me money?
Wondering if you should add solar when you buy your home? It’s one of our most common questions, so let’s check into it! Today, we attended a solar seminar with Alan Issacs & GoSolar from our LeTip group to find out more on this popular subject.
The average monthly cost of electricity for a CA resident is $183/mo, or $2200/yr. On top of that, it’s constantly increasing, on an average of 5% per year. So if you think your bills are big now…just wait…
How does Solar work?
Solar panels convert sunlight into the same electric energy you get from the utility company. Materials consist of solar panels installed on your roof, and inverters. In many cases, you’ll still be connected to the grid, so you will have access to electricity if your panels don’t generate enough, and you will get a credit for the excess energy you generate – win win so far!
Solar Installation & Purchasing Tips:
- Size your system to produce 80% of the energy you need, not 100%. You can always add panels later if you want to, as long as you are using a micro inverter instead of a string inverter.
- If you buy solar (not lease) before Dec 31st 2021, you’ll receive a 30% federal tax credit
- Just like homeownership, the really big savings comes over the long term; check out this 20 year projection graph:
Interested in Going Green Now? Steps to Go Solar:
- Solar Energy Consultation
- Proposal
- Solar Site Assessment
- Contract
- HOA Approval (remember many HOA’s only meet once a month, and many times they require neighbor approval – plan in advance!)
- City Permit – the company you select for solar will usually pull this for you
- Installation – these work on EVERY type of roof, and typically takes 3 days
- Inspection
- Net Energy Metering (NEM) agreement
- Permission to Operate (PTO)
The entire process takes about 4-8 weeks, depending on weather, how many panels you have, and various other factors.
How Should I Pay For Solar?
It’s all about options – and there’s plenty. Some are by far better than others. Let’s explore them further:
- Upfront – typically pays back within 5 years and offers a 30% tax credit
- Consumer Energy Efficiency loan – also eligible for tax credit. This is also tied to you the owner, which will save headaches when you go to sell your Orange County home.
- HELOC – you can use your current home equity to purchase by taking out a Home Equity Line of Credit
- HERO / PACE loan – a secured loan where your credit is not even checked. Be careful of these options, it can scare buyers if you go to sell your home. If you KNOW you’re going to stay in your property until it’s paid off, then go for it. The interest rate is usually 8%; so it may be better for you to take out a HELOC if you have equity.
- Lease / Power Purchase agreement – the worst option for payment, because you are not eligible for tax credit, it’s typically a TWENTY year agreement, and your lease payments typically increase annually (around 3%). This option can also make it difficult for you to sell your home.
If you’d like more info on Solar, feel free to reach out to 949-338-7408 or tweet @AngieWeeks, and we’d be happy to connect you with multiple people we know in the Solar industry!
Read Full Post | Make a Comment ( None so far )Tiny Homes & Cutting Edge Home Performance Monitoring
Tiny Home owner / builder Corbett Lunsford
Good times at Orange County Association of Realtors today – we got to tour a tiny home & meet the builder! First cool point, the builder, Corbett, is a totally *normal* person, who has never built a home. He’s towed this tiny 7000 miles & it’s still in tact! Hopefully this inspires some of you readers who are interested to explore tiny builds further 😊 Check out the pics!
Tiny Terrors?
But wait. Isn’t it dangerous to try to build your own home? Well, builder homes aren’t as safe as you might think. Construction crews blow it all the time. A good build is about time & attention, you don’t have to be a rocket scientist. It’s ok if you don’t want to DIY, but read on for some tips about ensuring your existing home is safe for your family.
Your home is a system.
Everything is designed to work together. But does it? Is the symphony in tune? You get a heart monitor at the hospital, but what about a home monitor for your most important investment?
And hey – energy efficiency is all the rage – the government will give you a rebate for replacing your furnace or air conditioner with a higher performance model; plus you’ve heard about all the solar credits too. Who wouldn’t want lower bills & tax breaks?!
How do I know my home is safe & efficient?
You won’t know until you get an Energy Audit & do some home performance testing! Here’s your 4-3-2-1 on what you want to look for:
4 Elements – heat flow, airflow / pressure, moisture, air quality.
3 Recommendations – air sealing (control heat bleed), insulation, HVAC / mechanicals
2 Systems – enclosure, engine (anything that moves)
1 Goal – CONTROL
Thermal imaging can tell you so much about a home’s efficiency. If you’re building a home, buying a home, or selling a home, then consider doing a blower door test and an infared thermal photography scan. This will prove beyond a doubt your mission critical systems are functioning or failing. More tests to prove efficiency are:
- Duct / air tightness testing
- Zonal pressure testing
- HVAC testing
Home Diagnostics with Corbett & Grace Lunsford will be on TV next year if you’d like more info on how to go CSI on a home! Want it sooner? Check out #TinyLab on social media.
Call the AskAngie Team at 949-338-7408 or tweet @angieweeks if you need a referral to do one of the tests mentioned – we want you safe & smiling in your home, whatever size it may be 🏡 😄 🌟
Read Full Post | Make a Comment ( None so far )Orange County Real Estate Forecast for 2016
Had a great afternoon today listening to expert Gary Watt’s predictions for OC’s real estate market this year. Last year, we had a modest appreciation of 4.8%. Real people scenario: If you own a 500K condo, it’s now worth 524K 🙂 What’s in store for this year?
OC Inventory Predictions
Inventory should stay around 6500 homes, and appreciation is expected to be 2-3%. If our inventory goes up to 7500 homes, then we’ll have flat appreciation. If everyone freaks out because the election candidates suck and list their home, then a negative 2% is expected (if inventory rises over 7500).
New home sales should continue to decline (they were down last year), and high end and single family homes should decline. Not in overall price, just in volume, mostly due to affordability.
Rates aren’t expected to go much above 4%. Historically, the Feds have always lowered interest rates in an election year, and this year it’s different…so we have to see if that affects our market.
Buyer Trends in Orange County
First time buyers are 28% of our market, the main reason it’s lower than the rest of the country is affordability. Qualifying for homes is stricter, which is also a factor. And let’s not forget about student debt.
As a nation, the average is 63.7% for homeownership. Only 49.1% of Orange County residents are homeowners; our county is one of the hardest to buy in.
What about the younger buyers? 20% of Millennials are currently homeowners, but we’re seeing a commitment issue with about 10%, who don’t even have ‘buying a home’ on their radar.
Chinese & foreign buyers are still a force to be reckoned with. They like to spend their cash here.
OC Rental Activity
Our rental market is on fire, and will continue to be. The rental gap is about $1000/mo. Many residents are taking a short term mindset of saving the extra monthly spend instead of a long term equity building mindset. There are also many who are still rebuilding credit from foreclosure or short sale, who will remain renting until affordability and credit scores increase.
Overall, we should have another good year in 2016, as long as we don’t get an El Nino of inventory! If you are considering listing your home, the sooner the better, because our busy season starts to slow after May. Call or text Angie at 949-338-7408 to have our team crunch numbers and get a spreadsheet of your potential profit!
Read Full Post | Make a Comment ( None so far )2016 OC Home Fair & Homeownership Day – You’re Invited!
Will you be able to move in 2016?
Thinking about making some real estate moves this year or next? Check out The OC Home Fair at Chapman University coming up on Jan 30th. The event is free and offers 5 sessions guided by experts (1/2 hour each) with various classes for all levels of real estate education.
Taking a Saturday every year to protect your biggest investment is a great success strategy. Just think of how much better your life would be if you maximized your real estate opportunities! This event is pitch-free and will teach you to do just that. Fill out the form below for a personalized session plan based off your individual real estate goals:
We look forward to seeing you at #HomeownershipDay & helping you achieve your OC real estate goals!
Questions??? Comment below or like our for more details Facebook page.
Read Full Post | Make a Comment ( None so far )TRID – What Consumers Need to Know
TRID is the TILA / RESPA Integrated Disclosure Rule which is designed to help consumers understand the mortgage and real estate buying process more thoroughly.
How to most industry people see it? TRID is dirt spelled backwards 🙂 It’s a pretty big change and it’s causing delays. We’re annoyed.
45 is the new 30. That’s what everyone’s saying about an escrow timeline. In order to close in 30 days, everything has to flow perfectly. Now be honest, how often does that happen???
In this perfect world…Escrow needs to get the fee sheet over the day the lender requests it.
Furthermore, disclosures need to go out immediately, and the appraisal needs to be ordered pronto. Before loan docs, well pretty much before anything, a CD (Closing Disclosure) needs to get out to the borrower. The best lenders right now are providing this digitally, and those who aren’t (*ahem* B of A, Chase, Wells) have a closing timeframe of 60+ days, which is completely unacceptable. Every time something big changes, a new Closing Disclosure must go out and there is a 3 day mandatory waiting period. There’s no more room for sloppy documents and slow turnaround for paperwork. Having a good real estate team (title, escrow, lender, and Realtor) who all communicate is crucial more than ever with these TRID guidelines.
Delays can be caused by any one or more of these simple elements within the escrow process:
- HOA dues
- HOA transfer fees
- HOA move in/out fee
- Sewer lateral
- Roof inspection
- Pest inspection
- Security deposit transfers
- Insurance Certification costs
- Prorated rents
- Seller rent backs
- Mobile signing fees
- POA preparation fees
- Subordination prep fees
- Draw deed fees
- Buyer paid Realtor commission
- Repair credits
- Carbon monoxide detectors missing
Inspections should be done as soon as possible to avoid any of the above issues. Changing lenders in the middle of the deal now undoes the entire timeline and forces everyone to start over. You need to interview your lenders and have your team in place BEFORE escrow starts. Call us if you need referrals for competent lenders here in Orange County.
If you’re already in escrow with another team, make sure your agent orders Home Warrantee, all disclosures and inspections right away, and is in good touch with the lender. These are all standard practice already with the AskAngie team.
As a seller, you can help too. Right when you open escrow, call the management company right away with the credit card info and order your HOA documents. They are famously one of the slowest moving parts of an escrow so it should be addressed on day 1.
If you have any comments or questions about working with the new normal and TRID, don’t hesitate to call 949-338-7408, comment below, or tweet @AngieWeeks !
Read Full Post | Make a Comment ( None so far )2016 Real Estate Forecast for Orange County
Will you be able to move in 2016?
Today I had the pleasure of meeting Leslie Appleton Young with California Association of Realtors, and hearing a ton of facts and figures about where real estate stands in the state of California. Wow have we come a long way since 2007! Congrats to all of you who held on to your property!!
As of 2015, the housing market has officially recovered, and we’re rolling along at a steady pace. Over 94% of homes were equity sales this year 🙂 Median price is $482,150. Jobs look good; OC is actually #3 on the list up 3.2%, and construction is #2 on the industry list. All great news for housing. But the big question is…
What About Interest Rates????????
Leslie doesn’t really believe rates are going to jump the way other forecasters do. Well that’s good news…if she’s right 🙂 She said there may be an increase next year, but it happens, she’s not expecting rates to go up until March 2016…so you’ve got a little time to get going! (But please note the best time to buy in OC is always Oct-Jan)
Market Stats & Demographics
We are below average with first time buyers in the market right now, less than 30%. On the other hand, over 30% of properties sold this year went to all cash investors. 75% of boomers are homeowners. 20% of millennials are homeowners. The good news is that 43% of all boomers worry about their children’s down payment… and are willing to help their millennial offspring with gift funds. International buyers are actually down to 4% this year, they were at 8% in 2013. 45% of Millennials have NO IDEA if they could qualify for a loan or not. What?! Need to check on that kiddos! 🙂
If you’d like all of CAR’s facts, figures, and 2016 economic forecast click here.
Why aren’t people buying homes?
- Affordability
- Inventory
- Foreclosure pipeline is dry
- Trouble qualifying for a loan
- They’re happy where they are (average time between homes right now is 10 years)
Regardless of what the facts & figures say, home prices are on the rise right now and many people are getting priced out of the market. Don’t let this happen to you – TAKE ADVANTAGE of interest rates and consider picking up an investment or upsizing to build a strong portfolio and long term wealth! Tweet Angie today @angieweeks or text or call 949-338-7408.
Read Full Post | Make a Comment ( None so far )OC Home Fair & SoCal Home Ownership Day 2015 is this weekend!
Have any plans for this Saturday March 28th? If not, come visit the OC Home Fair at Chapman University. Learn everything about everything on home-owning, buying/selling, investing and plenty more! The speakers are industry leaders and hand selected – the best of the best! The event is designed to help normal people make the most of real estate, and Chapman graciously hosts it with our YPN group, The OC Register, and NeighborWorksOC every year for FREE!
Existing Homeowner Classes
For all you home owners out there, there are plenty of seminars that could help and educate you. Everyone wants to save money, right? “Go Green and Save Money” and “ Ways to Reduce Your Electric Bill” are a couple of seminar suggestions that will help save precious pennies! Would you like to be an “Automatic Millionaire Homeowner“? It’s actually a really easy concept – you’re invited to come learn how. Thinking about a loan mod? Loan Modifications Tips and Tricks is taught by a non-profit. You’re welcome 😉 Then, it may be time to consider Moving On Up: Making a Smooth Transition.
Classes To Buy A Home
Loans can be confusing, so there are TONS of classes, FHA Loans and Changes: What You Should Know or How Interest Rates Affect Buying Power is also super important.
First time buyers, check out “Steps to Buy Your First Home” to know what to do. Need better credit first? Well.. there is a class for that too, Ways To Improve Your Credit Score. Foreclosures are always a bummer! But did you know there is Life After Foreclosure and you can get back in the game? Closing costs can be scary but we have a class for that; Closing Costs: What Should I expect?. Want to know The Escrow Process, What to Expect With Your Home Inspection, or How To Make The Most Of A Small Space? Come find out!
Learn How to Invest in Real Estate
Investing is always a good long term plan if done correctly. Find out Property Management: Do’s and Don’ts and Commercial Property Purchases: Do’s and Don’ts. Staging Your Home for Top Dollar is totally important along with, Deferring Capital Gains Taxes: 1031 Exchanges and Orange County Housing Market Report. All of these sessions are custom tailored to teach you crucial things to know!
A huge thank you to the OC Register, YPN, Neighborworks OC and Chapman University. They have all put hard work into promoting and supporting this annual event. Also a big thank you to all the speakers who take time out of their day to help educate the community on the important factors of everything Real Estate!
Now, Hurry and register for any class that interests you before all the seats fill up at www.OCHomeFair.com!!
Questions or comments? Hashtags are #HomeownershipDay or #OCHomeFair. See you Saturday 12-5pm!
Read Full Post | Make a Comment ( None so far )Orange County Real Estate Appraisals – “Ask The Appraiser”!
Frustrated with OC real estate appraisals? Contact the professionals at the AskAngie team to learn tips and tricks to find a more accurate appraisal estimate!
Appraisers…..we love to hate them. They scrutinize your house, call your ‘baby’ ugly, and they tell you it isn’t worth as much as you would like. But they are a critical part of every real estate transaction when you’re getting a loan, so we have to learn to speak appraisal language. What does an appraiser do, anyway? In a nutshell, appraisers determine an unbiased price your property is worth at any particular moment in time. They do this by pulling ‘comps‘ or comparable properties near you, and then factoring in upgrades and features to nail down a property price. The bank hires an appraiser to confirm the loan they are about to give you is on a safe, solid, properly priced property. This week we had the pleasure of hearing long time Laguna Beach appraiser Mary “Vicky” Wilson tell us how we can get closer to the right numbers. As an agent in the business 11 years, some of this info was totally new to me! I’m sure you’ll learn a few things too – so read on 🙂
First off, appraisers take a completely factual and non-emotional approach. So to get on the same page with them…you’ve gotta use your head, not your heart. Every price adjustment and comparable property needs to be validated with a series of facts behind it, not just thoughts or feelings.
Basic guidelines Orange County Real Estate appraisers follow:
- **Appraisers do NOT NOT NOT use a price per square foot average.** Don’t even try to value your property like this. You may be able to justify it to the buyers agent, buyer, and yourself, but the appraiser isn’t buying it, and they give the bank the green light needed to lend the money needed & close this deal. Now, lots and land are an exception to this rule, but the main dwelling is NOT.
- Comps must be reasonable substitutes. ie single level properties vs 2 story properties are NOT comparable. Read that again because it takes a minute to sink in. SERIOUSLY?? The 2 story that is 3 doors down is not a comp if you’re a single story??? Notsomuch in the eyes of the appraiser. Be careful not to price a less desirable model in a neighborhood the same as the most desirable if they differ in stories.
- To follow along these lines, lenders don’t want an appraiser to compare properties that are 15% plus or minus in size. If you are the smallest model, you may not be a comp with the largest, and vice versa.
- Lenders require 4 closed sales AND 2 backup or pending sales that support the value opinion & your price tag. Pay attention to active, pending, & backup listings because the appraiser is! They are looking for upward or downward trends in your local market. One high closing in your area won’t help you, remember FOUR closed properties are needed, plus 2 more that are under contract.
- Did you know there are only 17-20 line items on an appraisal? Appraisers stick to the cold, hard facts.
- L O C A T I O N is the #1 consideration. Location also trumps distance from property. So if you are the only ‘ocean view’ in your community, an appraiser may go to a neighboring community to pull other ocean view comps instead of other non-view properties in your same neighborhood. Same would go for a ‘corner lot’ or ‘end unit’ location.
- Time is of the essence. Appraisers like 3-6 month old closed comps, not more than 1 mile away. Pull up this data before you price your property so you are in line with the realities of today’s market.
- No, your converted detached garage, pool house, or Mother In-Law suite is not part of the square footage of your property. Ever. Rule of thumb: If you have to walk outside the main structure and have air or water or wind touch you then it’s not part of the square footage 😦 Furthermore, to be considered square footage, permitted improvements must be above soil grade & under the main roof. Sorry, but your cool casitas or underground grow and wine rooms can be appraisal line item adjustments, but NOT included in the square footage.
- .75 bath (toilet, sink, shower) is counted as a full bath in appraisals!!!! .5 baths with no tub or shower, on the other hand, are only noted as .1….so if your property is 5 full and 3 1/2 baths… it’s a 5.3 on the appraisal; not 6.5.
- Appraisers only have 48 hours to send their appraisals in, and they get paid less than $500 per report. Banks have high expectations and short timelines, so this is where a good agent comes in to assist your appraiser in understanding your home’s true value, quickstyle. More agent tips coming if you keep on reading….
- The market will *usually* pay back 50-60% of what you spent on upgrades!!! Sellers who try to add the entire price of remodels or upgrades into a purchase price always end up disappointed. Remember this ratio and come to terms with it now.
- If you do have an unpermitted addition, appraisers will ask: Does it have intrinsic value to the property? Is the addition positive or negative to the overall home? How is the condition? Remember, non-permitted additions won’t count toward square footage, ever, but it can be added as a line item to the overall valuation.
Tips for Realtors and homeowners to better work with appraisers:
- Be present at the appraisal appointment with a comp packet. Or email it early. The appraiser is in the field NOW, not in 3 hours when you get back to the office and your email. Don’t expect appraisers to drive back to see your comps. Make sure to support upward and downward trends with comps and a possible market report, too.
- Inform – appraisers need to know what was upgraded and how much was spent. Readily offer full access to everything.
- Don’t approach an appraiser negatively or with an attitude if you don’t agree with their valuation.
- Don’t say: “You should have no problems with the value”. Famous last words.
- During follow up: don’t ask the value, they can NOT tell you the number directly. Instead ask: “Did you find any problems with the home that may be an issue?”
Wanna Ask the Appraiser more specifics?
Mary Vicky Wilson is happy to do ‘range valuations’ for Orange County homeowners who are considering selling. May as well do it now.
949-939-6806
Vicky@yourappraisalpeople.com
Want an Orange County Market Report and professionally pulled comps?
Contact the AskAngie team and we’re happy to help! You can reach Angie direct at 949-338-7408. Or just email Angie@AskAngie.com or tweet @AskAngieTeam so we can help you get the research you need to sell your biggest asset for top dollar!
Read Full Post | Make a Comment ( None so far )Southern California Home Ownership Day 2014 – OC Home Fair
Need help in Real Estate?
Want to buy a home, but don’t know where to start? Or are you trying to sell your home, and everything is going wrong? Have an interest in investing? Then you came to the right place. All your questions can be answered On March 29 2014 at the Southern California Home Ownership Day located at University Drive Orange, CA 92866 !! This event is a do not miss opportunity.
The Southern California Home Ownership Day
California Home Ownership Day is hosting. Some of the seminars include Buying after a Short Sale Foreclosure, Steps to Buy Your First Home, The Escrow Process, What to Expect With Your Home Inspection, and Ways to Reduce Your Electric Bill. Each class is taught by a well educated instructor.
Do you want to be an Automatic Millionaire Homeowner?
The Automatic Millionaire Homeowner seminar is a slow play way to become a millionaire in real estate. I am teaching this class, please click on this link (https://www.surveymonkey.com/s/ochomefairclass01). You can also enter to win a free raffle to win the book The Automatic Millionaire Homeowner by David Bach.
The best part of this event is that it’s FREE!! But you need to hurry and register a seat for the classes you would like to attend. Don’t know how? To learn more about this event visit http://www.OCHomeFair.com or Contact me at (949) 338-7408 or Tweet me @AngieWeeks
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Read Full Post | Make a Comment ( None so far )What’s in store for Orange County Real Estate in 2014?
What’s in store for 2-0-1-4?
Today we had the pleasure of attending a lunch & learn by The Real Estate Focus Group and Steven Thomas, one of Orange County’s best real estate forecasters. Steven’s reports have been published in Forbes, USA today, NY Times, and especially the OC Register because he’s constantly pulling tons of valuable data about what’s going on with the OC housing market.
2013 Real Estate Review
In 2013, short sale volume dropped by 61%, (holla:) we experienced a hot hot hot market with 18% appreciation and then the unrealistic sellers entered the market after June. We saw many more move up sellers, which is a great sign. There was a significant lack of inventory at the beginning of the year, followed by a spike and overpriced inventory in the fall. We also had a refinance bonanza, so hopefully you took advantage of that! Interest rates are still historically low, but tapering is looming, so 2014 is a year to get your financing while financing is still good.
2014 Real Estate Ramp Up
We currently have 5000 homes on the Orange County market, and we have a 49% increase in inventory since this time last year. Our market is healthy because interest rates are still low (but expected to go up), and we are currently at 90% equity (standard) sales.
Only 5% of the mortgaged homes in Orange County are currently underwater. That means 95% of you are back to even or have (gasp!) equity – FABULOUS NEWS – and this makes the perfect formula for a continued move up market. If you’d like to get the house with the yard or the pool, this year is opportunity time for you.
First time buyers who have been squeezed out of the market the last 12 months will come back, even though their rates are a little higher and FHA guidelines have changed. In addition, more luxury buyers are expected to enter the market this year.
Sellers, our expected time for a properly priced home on the market in Orange County is 93 days. Our median sales price is 610K, and buyers, your monthly payment for a 4.5% loan at this price is approximately $2500. Still affordable. Unless you like paying off your landlord’s mortgage instead.
New home construction is going up: Rancho Mission Viejo, Great Park Irvine, and Baker’s Ranch in Foothill Ranch are all big developments underway. Remember it’s still a good idea to have a Realtor represent you even in a new build situation, so be sure to call us if you would like to check out any of the inventory out there.
Some concerns for 2014….. uncertainty, lack of fair market value homes, interest rates, and the circus in Washington DC.
Some expectations for 2014…… buyers will insist on fair market value vs. paying over appraisal, active inventory will continue to rise, interest rates will continue to rise, and we should have a mild appreciation of 0-5%.
If you are interested in MORE geeky data, we have it at our fingertips! Just email angie@askangie.com, tweet @angieweeks or @weeksteam, or call 877-230-3211 to request a copy of this month’s Orange County housing report.
Read Full Post | Make a Comment ( None so far )California Real Estate Forecast 2012 – 2013
If you are interested in what is to come in Orange County real estate, then listen up as Leslie Appleton Young has provided us with some great insights. We had the chance to attend one of Leslie’s recent luncheons, and she gave us great information we needed to know for the upcoming Real Estate shift.
As mentioned in our recent video summary on YouTube (embedded below), Leslie stated California Realty is a “Bright Spot in the California Economy; and that the bottom has been reached and is on its way up.” We also found demand is starting to grow, big time! 83% of Real Estate investors are buying to hold. 57% of homes in Orange County are recieveing multiple offers of more than asking. There are an average of 4.3 offers per property!!! Homes are flying off the market right now as well – the average days on the MLS is cut in half from a year prior. Southern California Median home prices are up 14.3 %. Things are looking much better for Orange County and California real estate in general…great news!!
Are you ready to get your Orange County home on the market and upgrade? Call The Weeks Team…877-230-3211
CALIFORNIA REAL ESTATE FORECAST 2013
| 2008 | 2009 | 2010 | 2011 | 2012f | 2013f | |
| SFH Resales (000s) | 441.8 | 546.9 | 492.3 | 497.9 | 523.3 | 530.0 |
| % Change | 27.3% | 23.8% | -10.0% | 1.1% | 5.1% | 1.3% |
| Median Price ($000s) | $348.5 | $275.0 | $305.0 | $286.0 | $317.0 | $335.0 |
| % Change | -37.8% | -21.1% | 10.9% | -6.2% | 10.9% | 5.7% |
| 30-Yr FRM | 6.0% | 5.1% | 4.7% | 4.5% | 3.8% | 4.0% |
| 1-Yr ARM | 5.2% | 4.7% | 3.5% | 3.0% | 2.8% | 2.8% |
f = forecast
Contact info:
The Weeks Team
949 – 338 – 7408
angie@askangie.com
California Home Buyer Recovery Timeline – do you agree???
Happy Memorial Day!! We hope you have a nice and relaxing long weekend planned 🙂 Here’s an interesting email we received about homebuyer recovery from the folks at FirstTuesday.us and Barry Zanck, one of our preferred lenders. What do you think?
California Home Buyer Recovery
2005-2009 California economic development stagnates.
2007-2009 The Great Recession
2009-2010 The Federal Reserve takes direct control of long-term interest rates – all new mortgages are Fed funded by bonds.
2009-2016 The Lesser Depression, characterized by persistent slow job growth and low demand from home buyers, while dominated by speculators.
2010-2015 Home sales remains on a “bumpy plateau” recovery approximating their 2010 numbers. The state’s homeownership rate drops below 55% (state’s historic point of stability) to near 50%. Collectively, short sales, foreclosures sales and REO resales remain high.
2012-2013 The most likely bottom for home sales volume to users, followed by an extremely gradual sales volume recovery for lack of user demand. Apartment construction begins to rise noticeably in response to tenant demand.
2014-2015 Prior low pricing and low interest rates spark a bounce in home sales volume. This bounce is short-lived, as the Federal Reserve raises rates to control the pace of recovery and prevent momentum buying. Property prices keep pace with the rate of consumer inflation. Speculators holding SFRs acquired two or three years earlier begin to dump them
2014-2016 Home sales stabilize. Shortsales, foreclosures, bankruptcies and REOs remain high. 300,000-400,000 new jobs are created annually for a return to the December 2009 peak level. Generation Y begins to come of age and buy homes.
2016-2017 Full recovery mode for employment, home sales, then pricing. SFR construction rises, though no where near Boom-time heights.
2017-2018 Interest rates rise again.
2018-2020 Excess inventory of vacant homes finally returns to pre-recession levels. Generation Y begins to pick up homebuying activity en masse. Homeownership in California is at 50%.
2020-2025 Negative equity homeowners who refused to strategically default finally work their way out of debt and return to a stable financial status, the poorer for it.
2025+ Home prices return to peak levels of 2006. The lessons of the Great Recession forgotten, and home sales hedonism returns. The mistakes of the past are repeated and the cycle continues.
We agree that we are probably at the bottom right now, as we’re already seeing an uptick in California homebuyer interest, and a decrease in inventory. We disagree that interest rates will stay low until 2017…..although wouldn’t that be nice???! We also agree (unfortunately) that the lessons of the past will be forgotton by 2025, and the market will again cycle. It always does!
What do you think? Please comment below or tweet us @angieweeks or @weeksteam. Should you be interested in buying ‘at the supposed bottom’, please call us at 877-230-3211, and we’re happy to show you homes over this Memorial weekend!
Read Full Post | Make a Comment ( None so far )Orange County Home Staging – need a FAST sale?
Many of you have heard of Home Staging and thought “OK, maybe, but does it really work? Is it really worth the money?”
Last night I got a call from a home-owner I worked with at the end of March to pick up some props. When I staged their house I left some items behind and told them to give me a call when the house sells so that I can pick them up. In today’s market houses usually sit for a few months before an offer is made so you can imagine my surprise when I got the call. What happened? Why did they ask me to come pick up the props? Surely the house could not have sold so fast.
Orange County home sells 4 Days after staging – accepted offer was above asking price!!!
Let’s look at how much this staging saved them. For each month that a house is on the market a seller has to pay mortgage, utilities, insurance, taxes and any other owner related bills. Assuming the average mortgage is around $2,000 that is a lot of money spent each month the house is on the market. Knowing that, how much would you be willing to pay for a service that can help sell your house faster? Would it be worth $1000 to save months of those expenses? My services for this house cost these owners well under $1,000 and we used only what was already there. The owners were still living in the house and had everything we needed on hand.
If you are considering selling your house make the investment in Staging. It will save you so much money in the long run, and get your house sold much faster.
For more information check out our website dedicated to Orange County Staging!
Read Full Post | Make a Comment ( None so far )10 Ways to Avoid Short Sale Delays
If you’re involved with a short sale for an Orange County home, the last thing you need is a mountain of delays. Fortunately, there are 10 steps you can take to help minimize logjams and power through the sale at a reasonable pace. 
- Make sure buyers, sellers, and agents are all on the same page as far as expectations go. Everyone needs to understand that the process is complex, and things don’t exactly happen overnight.
- Homeowners should complete all necessary financial hardship documentation. It is important to update these docs on a consistent basis.
- Get the sale property up on MLS and market the heck out of it.
- Come to an agreement regarding any external third party fees before submitting HUD (agreement should be valid for 60 days). Possible external fees include short sale negotiation, reconveyence, document preparation, and notary.
- Before submitting short sale documents and/or images, go over them with a fine tooth comb for accuracy.
- Lagers can cause some serious delays. So make sure customers and agents complete all necessary tasks in a timely manner.
- Do your best to get a purchase offer that reflects the best possible fair market value and highest return for investors.
- Submit fully executed purchase offers, making sure all addenda have been signed by buyer and homeowner. Provide any supporting documentation with offers.
- Get busy and obtain a release on outside liens as early in the process as possible.
- Be on the lookout for any of the following situations, as they invite delays:
a) A change in buyer, agent, or terms
b) Customer files for bankruptcy or divorce
c) Changes after approval letter is issued (please note expiration date)
If you’d like to learn more about short sale opportunities in the Orange County Real Estate market, I’ll be delighted to help. You can connect with me at 949.338.7408 or angie@askangie.com, @AngieWeeks or @WeeksTeam.
Read Full Post | Make a Comment ( 1 so far )Orange County Home Staging: Horrible Odors
Keren Shamay of Shamay Staging & Redesign Inc. here. I am currently in AZ at Real Estate Investment school. Today’s topic? Fix and Flip. How to do it the right way. What are the hazards? What problems come up? During one of the discussions we ran across a house that had terrible pet odors. The kind that happen after years of more than 5 dogs living in a house, some of which never went outside. Imagine walking into that kind of house as a buyer.
Most home owners do no have that scale of problem on their hands. Many however do have a less offensive version of it. Most buyers may not say anything, but will definitely cross your house off the list of potentials to buy. So as a seller with a pet odor problem, how do you remedy it? The answer that will help the majority of homeowners is paint. Get enough paint to repaint the inside of your house. Go to a store that sells essential oils and get one vial of Cedar-wood and One vial of Orange. Mix 5 drops each of the oils per gallon of paint and paint your walls.
This should solve many of your problems. If it does not fix the problem, call a Stager who is experienced with this process for the next steps. You are at a point where you may need much more than basic staging advice. They will be able to help you resolve the toughest of issues. As a home Stager I am very familiar with this remedy, and the next steps should they be needed. No matter who you use, a Stager along with your Realtor are your best allies in getting your house sold.
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