Relocating to Southern California? Writing a strong offer in today’s OC market
Sunset over Surf City Huntington Beach Pier
Southern California’s Current Housing Crisis
Are you thinking of buying in relocating to Orange County, CA? Today’s market can be frustrating and intimidating, but there are ways to make the buying process easier. The housing market in Orange County and LA has been on the rise and the inventory has been poorly stocked. This usually means there are multiple buyers interested in houses on the market. Bringing your offer to the table fully ready and easy to work with helps you have a rise above the other buyers interested in the home you want! We have some tips that we have experienced with our clients that has helped them get ahead of the game when it comes to receiving offer acceptance on the home they really want.
Rejected? Preparing an offer that gets accepted for your future Orange County home
Having your offer and all of the extras prepared when deciding on the home you want will make the difference between acceptance and rejection. You’ll want to start with a fully underwritten loan that is ready to go! It makes your offer SUPER strong if you can write off your loan contingency, and just leave your appraisal contingency. Sellers LOVE this. This allows the seller to know your loan homework is done and you are ready to go NOW. It shows that you are almost as strong as a cash buyer for their home.
In addition, sellers in today’s market expect to see your Proof of Funds (POF) on day zero. Be prepared to show your reserves with every offer. As a good buyer’s agent, we hold all this info on file ready to fire off as soon as you are ready to submit an offer. Time is of the essence.
Are You Easy to Work With!?
Another thing that has helped our clients have an edge up on other buyers is having a non-contingent offer on a property sale. This gives you that edge up because you are stuck selling your existing home and praying for a fast buyer. If you’re open to handle repairs on your own dime, (aka signing an ‘as-is’ offer), than sellers are more likely to choose you because it gets them out of the headaches of dealing with contractors during escrow. Sometimes, this allows you to go in with a less than asking offer, knowing you will take care of repairs yourself later on.
Having a proper letter written to the sellers also makes you look professional and organized. We always recommend this to our clients so the sellers really know who you are, and why this house is perfect for you! We even include a photo of you & your family in the letter so they can place a face with the name. Trust us…this makes a HUGE difference when there are 5 or 10 offers on the table!!
If you’ve been struggling to get a bid accepted in this market, or don’t have proper representation, please contact us, we will make sure you’re taken care of! Even if you DO have all your ducks in a row, expect to write at least 3 offers in Orange County before you have one accepted. Statistically speaking there are at least 10 buyers for every home, so simply writing an offer is not enough. Let us help you win your bid! We’re at 949-338-7408 for a consult anytime. Just call or text!
Superior Home Safety Rankings in Orange County, CA
Local Orange County Cities are Among the Safest in the Nation
As real estate professionals, we’re always keeping an eye out for stories on home safety, since it’s consistently one of the biggest priorities for people who are shopping for a new home.
That’s why we were delighted to learn that many nearby Orange County cities are actually ranked among the safest across the United States, according to the latest Home Safety Rankings (HSR) released by local home services app SERVIZ.
SERVIZ created its Home Safety Rankings when the company’s founders realized that they were failing as many as 1 in 3 home contractors for criminal background checks (definitely statistics the company felt they needed to explore further). Concerned by these numbers, SERVIZ then researched and assembled its groundbreaking new Home Safety Rankings (HSR) Index for over 100 metropolitan areas across the U.S., which not only offer statistics on home safety and crime, but which also provide a detailed look at the safety habits and concerns of
residents city by city. SERVIZ’s HSR findings include useful safety tips and suggestions, and received the approval of the National Crime Prevention Council (NCPC) as well.
High Marks for Safety
Let’s look at how we did on a local level.
Out of 108 metro areas analyzed and ranked for home safety, several cities in the Orange County metro area ranked among the very top of the list, with high-ranking cities including Aliso Viejo, Laguna Niguel, and Mission Viejo, California!
Aliso Viejo residents can certainly celebrate, as the city was ranked the third safest overall, with a superb safety score of 79 out of 100 (with 100 being safest). Laguna Niguel also made the top 10, coming in at number 5, meanwhile, with a high 65 safety ranking—and both received A+ letter grade scores, too. Mission Viejo was number 9 in the top 10, meanwhile, with a safety
ranking of 61 and an A- rating. To give you an idea of just how good these numbers are, Los Angeles itself scored a C+ rating and a safety ranking of just 19, by comparison.
These statistics show that your chance of becoming a crime victim is just 1 in 126 in Aliso Viejo, 1 in 89 in Laguna Niguel, and 1 in 82 in Mission Viejo. These are impressive numbers when compared with L.A.’s 1 in 33 chance of becoming a crime victim!
The SERVIZ Home Safety Rankings (HSR) Index was achieved as a result of proprietary data collected over the last 5 years serving over 200 thousand customers, and 300 thousand home improvement jobs, and other publicly available sources. To view how California stacks up against other states, visit https://www.serviz.com/national-hsr-index.
Helping Homeowners Nationwide
Ultimately, SERVIZ isn’t just analyzing crime stats or helping homeowners nationwide focus on the big picture when it comes to home safety – the SERVIZ app is actually helping homeowners stay safer when booking home services right from their PCs or phones (booking a safe, highly rated, and fully vetted handyman in just a few mouse clicks). The company offers a safer, faster,
easier, and more transparent way to book and buy home services online. From handyman work to plumbing, carpet cleaning and appliance repair, SERVIZ provides highly rated, background-checked and licensed professionals at the click of a button, all backed by the SERVIZ Consumer Protection Plan.
To learn more about SERVIZ, visit http://www.serviz.com. You can also download the free
SERVIZ App on Google Play or iTunes for immediate use as well.
We also know many trustworthy local contractors if you still prefer a good old fashioned referral. Just text Angie at 949-338-7408.
Read Full Post | Make a Comment ( None so far )Hot Topic: FHA or Conventional Loan?
Wondering which home loan will be best for you? Here’s some helpful tips
Lots of buyers have been questioning which loan is best for them and their situation. Honestly, it does depend on just that – your situation. We have put together some information on both of these loan options to make it easier for you to decide what you think is best for yourself! Some of the biggest, but most simple differences between FHA and conventional loans are based on their guidelines and who can apply for them. FHA loans are government backed programs that require a minimum 3.5% down payment. These loans tend to be best for borrowers with lower credit than necessary to apply for a conventional loan.
Conventional loans are open-market and are geared for people with a higher credit score, typically near 700 or higher. Rates tend to be a bit lower, and in most cases no Mortgage Insurance is required.
FHA used to be a much more expensive option, but after FHA MIP reductions in 2015 it is now a real competitor. However, FHA can tend to be more strict in requirements than a conventional loan is.
What does an FHA Loan Require?
FHA loans require homes to have the following in good working order:
- stove
- heat
- functioning roof
- locking doors and windows
- non-lead based paint
If you are looking to buy a condo… it can only be in a FHA approved community. So if you are choosing FHA, you may have less home options available to you. FHA loans also require you to purchase mortgage insurance which protects the lenders from a loss. In January of 2015, the FHA reduced the annual mortgage insurance premium on a 30 year fixed rate from 1.35 % to 0.85% of the loan balance. This is leading to huge savings for many who want a condo but just don’t have the larger down payment.
Okay, so which home loan should you choose?
There isn’t one specific answer that fits everybody. It all depends on you, your needs and wants, and what you can afford to choose. If you plan on owning your home for 6-10 years and you don’t mind refinancing to cancel your mortgage insurance you might choose FHA. If you can put 5% down, you plan on keeping your home for 10-20 years and you don’t like the idea of paying mortgage insurance for thirty years you may choose conventional!
If you are looking into buying a home and need help finding one along with deciding which loan option is best for you – we can help! We work with a lot of amazing lender contacts locally here in Orange County that we would love to set you up with. We like to match-make our clients with lenders that we think will benefit them the most. Depending on your personality, wants/needs, and what kind of loan you are interested in all helps us decide which lender will be best for you! Fill out the form below or contact Angie at 949-338-7408 for more information 🙂
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Is it time to hire a property manager?
Thinking about hiring a property manager? Here’s some reasons why you might want to!
Are you having to move away but want to keep your current home and just don’t have the time to take care of it or deal with renting it out to someone else? Do you own multiple properties and don’t have the time to take care of one or more? Are you frustrated with trying to find a renter for your home but need to get it done? Any of these situations are when hiring a property manager comes in handy and really benefits you! Did you know AskAngie team is willing to be your property manager and take these tasks off your shoulders? Well we are, and we can’t wait to share how with you!
We can think of lots of people who would benefit from this process but here is a few on our list:
- Active military or veterans who are moving to a different location
- Seniors looking for additional income without hassles
- Busy executives who travel
- Active duty military who are deploying
- A landlord who needs some extra help
- Relocating for a job but know you want to move back to your home in sunny California someday
What will we do for you as your property manager?
Helping you take care of your home while someone else lives in it is something we are experienced and know how to do for you. We know dealing with this can be such a hassle, and we are ready to make it easier and smoother for you!
- We will do all the advertising for you that you will need in order to find you the perfect renter for your home! We will initiate, sign, and renew any leasing agreements as well as any terminations that may need to be done, so that you don’t have to worry about the paperwork.
- We always run credit reports and verify previous tenancy when looking at a potential renter. We also have access to run a complete background check if needed!
- We will handle getting any repairs or maintenance work that needs to be done, done for you! Living far away from your property or being busy with work can make it hard to be on top of repairs and maintenance your renter may want or need, but don’t worry – we’ve got it handled for you!
- We take care of issuing any notices like past due rent or notices to vacate.
- Contracts, expense payments, and security deposits is so much to worry about and make sure you get done, but once again we would do it all for you so there would be no worrying necessary!
Honestly, just kick your feet up and relax – we’ve got this!!
We take care of all the heavy lifting as well as being a professional shoulder to lean on while renting our your home. It really does take so much weight off your shoulders!
How much do Orange County Property Management Services cost?
I’m sure you’re wondering what cost all this work comes at, so here it is:
for a single family home, townhouse or condo we charge only $175 a month to take care of all of these things for you.
Multiple units would depend on the number of units that property had, but it usually ends up being about 5% of the total gross rents from that particular property.
What do you have to lose besides for some extra stress? If this feels like something you need to take advantage of, give us a call today at 949-338-7408! We look forward to hearing from you 🙂
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!
Mission Viejo Single Level Gem for sale
Mission Viejo is one of our favorite cities – super safe, great schools, shopping, & scenery! We’re happy to announce a new listing coming to the MLS soon for just $724,900. It’s single level, charmingly upgraded, and sits on an interior corner lot with RV parking.
The backyard is very private & provides a large covered patio with skylights & stone tile – perfect for a future California Room! Boasting 4 beds, 2 spa-like baths, enormous eat-in kitchen, soaring ceilings, and oversize decorative tile – don’t miss out on this handsome home.
To schedule an earlybird showing for this classic beauty, just fill out the form below. More details and photos are available at http://www.24151ViaMadrugada.com
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!
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 1031 Exchange & Other Investor Property Tax Shelters
Got investment property?
It’s surprising how many property investors we meet who aren’t familiar with 1031 Exchange. Since money doesn’t grow on trees, maybe we can save you some when you decide to sell – read on!
Recently Debbie Bannister with Exchange Resources spoke to our Real Estate Focus group with some 1031 Exchange tips. If you are wondering whether your property fits the mold for a 1031, here are some qualifying terms:
- Must be an investment property, not a primary residence
- Property you are exchanging for must be equal or greater value than net sales price
- Exchange must be done by a qualified intermediary
What kind of properties can be included in a 1031 Exchange?
The properties must be ‘like kind’. Like kind is defined as any real property held for the productive use in a trade or business for investment purposes. Land can also qualify. 1031 properties cannot be for your personal use, but you can put your business in one, per the definition above :). Many investors also ask if the debt on the property counts toward the exchange. The answer is Yes, loan debt is included. If you don’t want to take on new debt, however, you have the option to pay cash as the down payment on your move up property. And if the property you’re purchasing needs work, you can also do an “improvement exchange”. Lots of options!
1031 Exchange Timelines
45 days after the close of your investment property, you must identify a property to buy that is of equal or greater value. If you can’t buy one of the properties you identify for the 1031 exchange, then your exchange is off even if you buy some other property; therefore this is a crucial step. You can identify up to 3 properties, so make sure not to put all your eggs in just one basket. Strategy: identify your favorite on the first day, then wait till day 40-45 to identify your backup options.
180 days to buy, close, and be completely done.
Cashing out funds with a 1031 Exchange
In some situations you may not want loan debt, so a partial exchange is an option. Or maybe you want cash. This is also an option, but talk to your CPA about how much cash you should keep because you will be taxed on it.
Tax intelligent ways to get completely OUT of your real estate investments
Bruce Jones our tax strategist talked to this extent, and you’ve got some options:
- Charitable property
- Deferred sales trust (don’t do it – none of our experts recommend this!)
- Structured sale
- Traditional installment sale (aka seller carry back)
Remember the IRS is not your enemy, lack of knowledge is.
Bruce suggested to consider coupling a monetized loan with an installment sale. You still get a tax free chunk of change at close of escrow, and you can defer your taxes for 30 years. It’s kinda complicated, so here’s a pic to help!
In case you’re on a mobile & it’s hard to see what’s in the graphic above, here’s the breakdown:
You’ll do a interest only 30 year installment sale:
Seller –(installment sale)–> Dealer –(resale on original terms)—> Final buyer
then, with a Separate investment business loan:
Lender –(loan typically 95% of net sale proceeds)–> Seller –(invests)–> $$$
followed by the Lender’s payment processing and loan guarantee system:
Dealer –(automatic installment payments)–> Payment Processor –(single source limited recourse loan–> Lender
Bruce showed us example after example of SoCal & Orange County property investors he has helped to save hundreds of thousands of dollars. Some even millions, so it’s worth a consultation with him if you decide to cash out all or even some of your real estate portfolio. After all, property investments aren’t all about how much you ‘make’, they are really about how much you get to keep. He’s been utilizing this strategy for almost 20 years and never ran into a problem 🙂
If you’d like a personal introduction to any of our tax experts, Real Estate Focus group consultants, or a list of investment opportunities, just fill out the form below or call / text Angie at 949-338-7408, & we’d be happy to assist!
Resort Living All Year Round in HB
Affordable Huntington Beach, CA Condo
Looking for your first place or a beach close investment property? Look no further – 5096 Tortuga #104 is prefect for a college student, first time buyer, bachelor / bachelorette, snowbird, or even investor since there’s great rental potential! Located just over a mile from the beach, the possibilities of sun & fun are endless.
Cabo del Mar Community condos
With a long list of amenities that include a clubhouse, pool, spa, sauna, tennis courts, racquetball courts, gated parking, and a large greenbelt area that over looks the wetlands, Cabo del Mar lets you indulge. Plus being situated near shopping, restaurants, and dog beach offers such a convenient lifestyle. If you like nature, you’re just moments to the Bolsa Chica wetlands and the sand of Huntington’s world famous beaches. It’s easy to see why people flock to Huntington Beach!
Cabo Del Mar has parking galore, with underground subterranean parking spots for residents and street level parking for guests, you’ll always be sure to have close parking to your condo. Unlike most studios, 104 has an extra level of privacy / separation thanks to the plantation style shutters, ceiling added soundproofing, and quiet location in the complex. On cool beach nights sit 
in front of the cozy gas fireplace to warm up and relax.
5096 Tortuga is a must see, a solid investment priced at just $284,999 this unit won’t last long! To schedule a private viewing call us, The AskAngie Team at 949-338-7408, fill out the form below, or email us at Angie@AskAngie.com.
Charming Homes in Palm Beach Park, San Clemente
55+ Oasis with Private Beach
Palm Beach Park Private Beach
Droves of seniors are settling in the seaside community of Palm Beach Park in San Clemente, CA – a manufactured home development with it’s own tranquil beach oasis. This quiet retirement community is the perfect place to slow down, unwind, and just be one with the sunsets and ocean. Residents are just across the street from an exclusive private beach that is almost 2 acres, and the best part is they don’t have to pay 2 million dollars to get whitewater views and a walk to the sand.
There are currently 10+ models to choose from, varying in size and price from 100-500K. Truly, there is a home for every senior in this San Clemente treasure. Some coaches are fully upgraded, and others you can add your own personal touches to make it your own beach oasis!
Unparalleled Senior Living
View of the Clubhouse and pool
Luxurious amenities at the clubhouse include a full kitchen and bar, a library, and a game room with shuffle board. Also offered is RV parking, a car wash on site, and the salt water pool that is heated all year round. On the privately owned beach you can enjoy the volleyball court, picnic tables, BBQ area, and the bonfire pits! Palm Beach Park is true retirement living with wonderful neighbors, amazing whitewater ocean views, and breathtaking sunsets!
“Walking down to the private beach and the different social events at the clubhouse are some of my favorite memories here at the park” JoAnn Cota, a homeowner, recently told us. “We love coming down from Buellton to visit the beach.” Another resident, Tom Mallett, states “The shimmering sunsets over Catalina Island are a true delight”.
The AskAngie Team has two listings, 407 and 401 Ebb Tide Drive currently available for showings. Another listing on Bay will be hitting the market soon.
Sparkling Ocean View from 407 Ebb Tide
Stop by and check out what Palm Beach Park has to offer on Sunday, March 6th from 12-3PM. Multiple homes will have open houses – you can tour many homes in one day and find the right fit for you!
Please join us on Sunday, March 6 from 12-3PM if you have any questions or would like a personal tour feel free to call us on our toll free number at 877-230-3211 or email us at Angie@AskAngie.com.We look forward to seeing you by the ocean!!
Photo credit: Antis Orange County Photography
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 )Reverse Mortgages in Orange County – Love it or Leave it?
We’ve all heard good and bad about the reverse mortgage market, so today I went to a class given by Dirk Pierce with Retirement Funding Solutions at the OC Register building to find out more information. Knowledge is power, right?! Plus it’s not fair to form an opinion about something until the proper research and due diligence is done.
What is a Reverse Mortgage?
Basically, a reverse mortgage lets homeowners convert a portion of the equity in their homes into cash, and eliminate their monthly mortgage payments.
Interestingly enough, Reverse Mortgages are over 100 years old, and they are also available in Britain, Chile, Canada, New Zealand, Australia, and Korea. They were designed to help people who where house rich and cash poor, and were also known as ‘shared equity’. Fast forward to 1989, and Ronald Reagan helped to create the first government regulated Reverse Mortgage plans under the FHA umbrella.
Another variation of a reverse mortgage is HECM for Purchase; both share similiar features:
- Both are FHA
- Neither have monthly payment requirements
- Both offer adjustable or fixed rates
You’ll use HECM for purchase when you are planning to buy a new property, for example to downsize, etc. Reverse Mortgage is when you stay in your existing home, and simply refinance.
HECM for purchase is an FHA loan that enables a person age 62+ to purchase a home with as little as 40% to 51% down and never make monthly mortgage payments. So basically you can get a 500K home for 250K and never make payments if you meet the age requirements. BUT….interest still accrues on your mortgage balance. The nice thing about the programs is they come with the following protections:
- Guarantee that FHA will honor the terms of the loan if the lender becomes insolvent
- Guarantee that you would never owe more than the house was worth
- Guarantee that there is no personal liability for repayment of the loan by you or your heirs. It is truly a non-recourse loan.
- Guarantees that the loan won’t become due until the last remaining borrower leaves the home.
Frequently there is remaining equity in the home…what happens with that? After the home is sold, any remaining equity goes to the heirs.
Do you qualify for a reverse mortgage?
- minimal credit requirements
- minimal debt to income ratios
What types of properties are allowed?
- single family
- PUD
- 1-4 unit property
- FHA approved condo
- new construction
- NOT second homes or investment properties, sorry!
More reverse mortgage facts:
- Only YOUR name is on the title, so don’t believe the rumors that the bank is on title.
- The loan becomes due when the last remaining borrower leaves the home.
- You can sell whenever you want to, and they do not have a prepayment penalty.
- Family has up to a year to either refinance your property with a normal mortgage or sell it before the loan is officially due.
Reverse Mortgages are all age based, so contact Dirk today if you’d like a chart to see what your down payment would be at your age. Want to learn more? Register for his class at http://www.OCHomeFair.com on Jan 30th, 2016.
Read Full Post | Make a Comment ( None so far )Experienced Developer Seeking Investors for Immediate Opportunity
Orlando Lutheran Towers, located in Orlando FL is just one of many projects completed by this developer.
Attention Investors:
We’re working with an experienced developer of over 30 years on multiple projects. He’s originally from the east coast, and is expanding his successful ideas west. He’s seeking investors here, and asked us to reach out to our sphere! You can meet him in person to ask questions & find our more details on Oct 20th, 2015, 1-2pm at our office in Corona del Mar.
If you’d like to partner on investment property, read on for specifics.. maybe this equity partner opportunity is for you.
Preliminary Equity Partner Participation:
- Separate LLC’s will be formed to procure entitlements;
- This entitlement process will be undertaken by our developer who has completed over 20 similar projects. Expected turnaround is 3 – 9 months depending on local circumstances and planning requirements. Note: We have independent specialist contractors lined up to perform these services and obtain final approvals.
- Equity Partners will receive an Annual Return of 18 % secured by a promissory note.
- Equity Partners will be repaid in full at construction loan take-down
- Final Project Equity Entitlements (Equity Kicker) will be 5%
Development Details:
- Types of Projects which we are developing are:
- senior independent living
- senior assisted living
- memory care and congregate housing; each project managed by experienced successful licensed care provider to run the operations. See Items 8-10.
- Locations: Central to Southern California; we have pre-selected two locations: San Clemente and Mission Hills (Palm Dessert); with a potential #3 is in Santa Barbara.
- Project size: 150- 300 revenue Units
- Costs to build and furnish (excluding land) 25-30 million;
When turn-keyed and 70% occupied value multiplier is estimated to be 1.2 : For example: when our project million completed and occupied at 30,000,000 = 30m X 1.2 yields project value of $ 36 m to be purchased by REIT/ or other cash buyers within 1 year or less. (Some projects may be held longer if investors choose) - Three Money Sources will underwrite these loan guarantee programs after equity partnerships are formed.
- Project’s ROI: 20- 25 % annually
- All projects are Green (electricity, materials, smart utilities) and create up to 30% Investment tax credits and sheltered ongoing income which a portion will be available to the equity investors.
- Each project’s care operations will be contracted to a premier California Licensed Care Provider (LCP)
- Our private company, Banyan Care Group Inc (as the 20% GP with our 80% Limited Partners) will develop & provide the AAA facility for the LCP to run.
- The LCP contractually will provide resident management & services, controlled operating costs, and guaranteed revenues.
St Marks Village, an assisted living community in Florida was also a project of this developer.
Great Townhouse Deal in Anaheim Hills – Just Listed!
Summit Park in Anaheim Hills
866 South Yellowstone Anaheim Hills, CA 92808
New to the market in the heart of Anaheim Hills is a beautiful townhouse in the Summit Park community. Anaheim Hills is located just south of Yorba Linda, California, opposite the 91 freeway at Imperial Highway.
Priced BELOW recent comps at $399,900, this 1,113 square feet condo includes 2 spacious master bedrooms and a half bath downstairs for guests. With hardwood floors and a fireplace in the living room, it sure makes it cozy. Looking for convenience? A two car direct access garage is also included. Want privacy? You’re also in a very secluded location in the complex, with no one above or below!
The Summit Park community has plenty of amenities. Come take a dip in the pristine community pool or relax in the spa. Also includes a playground for the children and an exercise room!
Relax by the fire or enjoy your private patio!
Summit Park is close to shopping, freeways, and plenty of fun things to do on the weekends. Nearby is a nature center where you can hike and have fun. Looking for something different and interesting to do? Try sleeping outside in an amphitheater under the stars! And don’t forget to check out all the fabulous places to eat at Savvi Ranch!
Pets? Check out the large patio & high fence!
Don’t miss out on this great townhouse, it’s going to sell fast! Come to the open house this Saturday May 23rd. Please email or give us a call with any questions or to set up a private showing. 877-230-3211; angie@askangie.com. Look forward to seeing you this Saturday!!
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!
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