4 Tips To Actually Enjoy the Process of Buying A Home in California
Buying a home in Orange County or anywhere in California is a significant milestone in anyone’s life. It’s a complex process that requires careful planning and decision-making. Here are four tips to help you make your strongest offer on a home.
1. Understand CA Home Budget and Costs of Buying a Home
Before you start house hunting, it’s crucial to understand your budget. This includes not only the purchase price of the home (through a mortgage preapproval) but also other costs such as home insurance, property taxes, closing costs, and maintenance costs. It’s also important to consider your long-term financial goals. Remember, buying a home is a long-term investment, and you don’t want to stretch yourself too thin, OR, wish you had stretched a bit further. This leads us to point #2 when it comes to enjoying the real estate process.
2. Partner with the RIGHT California Real Estate Buyer’s Agent
Are you aware of the new real estate laws changing in 2024? It affects every buyer & seller. A real estate agent is an invaluable partner in the home-buying process. They have the expertise and experience to guide you through the complexities of the real estate market. Buyer’s agents keep your goals and best interest in mind, and help you weigh out options so you are well informed and comfortable moving forward. At AskAngie Team, we can provide insights into multiple offer situations, market trends, help you find homes within your budget, and negotiate on your behalf. We’ll accommodate your unique needs and preferences, helping you find a home that suits your goals the best.
3. Make a Strong, but Fair Offer
Once you’ve found a home you love, the next step is to make an offer. Local comparable properties can help you determine a fair offer price based on value, the local market conditions, and your budget. A strong offer is competitive but also within your means. It’s important to be realistic and not let emotions drive your decision-making process. It’s also important to know Southern California properties frequently sell with multiple offers, above the asking price during the spring and summer seasons. To win the bid, you will likely have to be flexible, close fast, and respond to counter offers quickly and with confidence.
4. Trust Your Agent During Negotiations and the Homebuying Process
Negotiating a home purchase can be stressful, and can cause so many emotions. At AskAngie Team, we will guide you through this process. We will help you navigate counter offers, handle inspections and appraisals, and ensure that all the necessary paperwork is in order.
Enjoying the experience while buying a home involves careful planning, understanding your budget, choosing the right team, making a strong offers, and trusting your real estate agent during the process. With these tips in mind, you’ll be well on your way to securing your dream home with a smile.
Ready to take the next step? Contact Angie today at 949-338-7408 or fill out the form below to start your home-buying journey!
9 Essential Steps to Buying a Home in Southern California
Buying a home in Southern California can be an exciting and rewarding journey, but it’s essential to be well-prepared for the process. With its diverse real estate market and beautiful landscapes, Southern California offers a wide range of housing options to choose from. To help you navigate this adventure successfully, we’ve compiled a step-by-step guide to buying a home in beautiful California.
- Evaluate Your Financial Health and Select a CA Lender
Before you embark on your home-buying journey, it’s crucial to assess your financial health. A lender, ideally a Certified Mortgage Planner, can help you determine your budget, calculate your down payment capacity, and review your credit score. These factors will play a significant role in the type of home you can afford and the mortgage options available to you. It’s important to take this step before looking at property so you don’t get emotional and discouraged about something that is not in your budget. If you’d like an introduction to one of our trusted lenders, just ask!
- Research and Find Your Forever Real Estate Agent
Choosing the right real estate professional is a pivotal step in your home-buying journey. We understand the significance of this decision, and that’s why we constantly educate and strive to be your forever agent. Not only does Angie have her broker’s license, our experienced team is dedicated to understanding the dynamic Southern California market, listening to your needs, and guiding you through every step of the process. We believe in building lasting relationships, and we’re here to work hard to earn your trust. Our technical, negotiation, & marketing skills will all be an important part of your team.
- Learn About the Current Housing Market in Orange County & beyond
Southern California’s real estate market is dynamic and can vary significantly from city to city and even neighborhood to neighborhood. We’ll set you up on a direct feed from the Multiple Listing Service to stay informed about market trends, property values, interest rates, and the local economy. New listings of interest will flow to your inbox and you can use this knowledge to identify good deals. We will help you stay on track every step of the way to make informed decisions throughout the buying process.
- Complete Pre-Approval For Your Home Loan
Securing a pre-approval is more than just a formality; it’s a strategic advantage. In competitive Orange County and surrounding markets, every detail matters. Having a fully underwritten pre-approval showcases your commitment as a buyer. Many sellers will not even consider your offer or allow you to view the property without providing this critical information. We can connect you to trusted lenders who make the process seamless. Experience is key, and we’re committed to ensuring your journey is smooth and stress-free.
- Find Your New Home, Condo, or Land to Build
Once you have your budget and pre-approval in place, work closely with our team to search for the perfect property. We can usually get you into any property in under 24 hours – just text for an appointment! Consider factors such as location, size, style, and amenities that suit your lifestyle and preferences. Don’t forget to research schools, local services, traffic patterns, and community amenities if those are important to you. Remember to envision life 5, 10, and 20+ years in the future when you are weighing options. Many times, it’s best to narrow in on your favorite community or area, then narrow even deeper to your perfect home.
- Make an Offer
When you’ve found your home, you’ll know it in your gut. It’s time to go for it and make an offer! To come up with a price to win the bid, we review comparable listings together, and take market conditions and the seller’s motivations into account. Sometimes we need to offer over or under the asking price. Angie personally crafts a competitive offer on your behalf, and has a great track record of beating out multiple offers – which are very common in the Orange County and Los Angeles areas. Negotiations on price often occur during this phase, so be prepared to adjust your offer based on the seller’s response and level of other offers on the table. This being said, you do not want to risk this critical step with an open house or internet agent who you do not know and trust. It takes years of being both a buyer’s and seller’s agent to know how to best get offers accepted.
- Home Inspection & Appraisal
After your offer is accepted, our top priority is to schedule your home and appraisal inspections. This step is crucial to ensure there are no hidden issues with the property. It’s important to know that every inspection uncovers problems, and in California, it’s your decision as a buyer to decide to move forward or not during the first 17 days. We may need to negotiate repairs or a price reduction with the seller, or do additional inspections to find the true root of an appraisal issue. It’s important to keep a level head at this phase of the journey. Our team expertise will be valuable not only to coordinate inspections, but to also guide you with realistic repair expectations and referrals for quotes.
- Close Escrow
Closing escrow is the final step to unlocking your new door. During this process, our team grows! You’ll now have an escrow agent at your service, and we also utilize digital signatures, mobile notaries, and have a dedicated Transaction Coordinator. This ensures that all paperwork is promptly managed, multiple sets of eyes review it, and we are early with any and all contract deadlines. We are constantly adopting new technologies and team members to make the closing process smoother and more convenient for you.
- California Dreams Come True – Move Into Your New Home!
Congratulations! You’ve successfully navigated the complex process of buying a home in Southern California. Now, it’s time to celebrate and move into your new home. Our dedication doesn’t end at closing. We are committed to being your forever agent. Expect regular check-ins, monthly home valuation reports, and valuable referrals for upgrades or services like floors, solar installation, or professional organizers. We’re not just here for your current investment but for your future goals as well. We take pride in helping your friends and family navigate the steps of buying a home, making homeownership a shared success.
So, what’s your next move? Your dream home in sunny Southern California awaits, and we’re eager to be your trusted partner throughout this adventure. Don’t hesitate—text Angie today at 949-338-7408 to take the first steps toward your CA dream home. That idealistic lifestyle of Southern California is within reach, so let’s make your homeownership dreams a reality!
Understanding The Probate Process
Dealing with the passing of a loved one can be emotionally and administratively challenging, especially if they did not have their property in a trust. One crucial aspect of managing an estate after someone’s passing is the probate process. Probate is a legal procedure through which the court oversees the distribution of assets, determining heirs and beneficiaries, and ensuring that the decedent’s wishes are carried out by the law or a valid will. In this blog, we’ll explore the probate process, its key terms, and important considerations for listing a property in probate.
Probate Is A Legal Process
Probate is a legal procedure that oversees the distribution of a deceased person’s assets, ensuring that their wishes, as outlined in their will or according to state law, are fulfilled. It’s a court-monitored process designed to provide structure and fairness to the estate settlement.
Do I Need Probate?
The answer is unfortunately YES.
Everyone in California will go through probate UNLESS:
The deceased had a well-structured TRUST in place. Trusts are powerful estate planning tools that often allow for the seamless transfer of assets without the need for probate. Therefore, if your loved one had a trust, the probate process can be avoided.
Note that in cases where the will is uncontested and there are no disputes among beneficiaries or heirs (rare!), the probate process may be more straightforward. However, even in these situations, some level of court oversight or validation of the will’s authenticity will still be necessary, and probate fees and timelines still apply. The only way to 100% avoid probate fees is with a TRUST.
Key Probate Terms to Know
Before we delve further into the process, let’s clarify some essential terms:
- Executor or Personal Representative: This is the person responsible for managing the estate, either as per the will’s instructions or as appointed by the court when there is no will.
- Intestate Succession: When there is no will, the court distributes assets based on state law.
- Beneficiary and Heir: Beneficiaries are individuals named in the will to receive specific assets, while heirs include anyone, including a surviving spouse, entitled to inherit under state law.
- Letters Testamentary (or Admin): These documents grant authority to the executor or personal representative to act on behalf of the estate.
- Full Authority under the Independent Administration of Estates Act (IAEA): This gives the executor or personal representative the ability to handle estate matters efficiently without prior court approval.
- Limited Authority under IAEA: In cases where full authority is not granted, certain actions require prior court approval.
Understanding Probate Protocol
Probate is a court-supervised method to ensure the proper distribution of a deceased person’s assets. It involves several key steps:
- Petition for Probate: The process usually begins with a family member or a nominated executor filing a petition for probate with the local court. This petition formally requests the court’s permission to handle the deceased person’s estate. It typically takes 2-4 months for California courts to schedule the initial hearing and grant permission.
- Inventory of Assets: The executor or personal representative must create an inventory of all the assets in the estate. This includes real estate, bank accounts, investments, personal property, and more. The timeline for this step can vary significantly based on the complexity of the estate and the thoroughness of record-keeping.
- Notification of Creditors: The estate’s creditors are notified, allowing them to make a claim against the estate for any outstanding debts. This process typically takes three to six months to allow creditors to come forward and make their claims.
- Review and Settlement of Claims: The court will review and approve or disapprove creditor claims. Any valid debts are paid from the estate’s assets. The timeframe for this step can be influenced by the number of creditor claims and whether any disputes or negotiations are necessary.
- Distribution of Assets: After creditors are paid, the remaining assets are distributed to the beneficiaries as specified in the deceased person’s will or according to state law if there is no will (intestate succession). The time it takes to distribute assets can vary significantly, especially if there are disputes or complex distribution instructions in the will. It is rarely quick, unfortunately.
- Closing the Estate: Once all debts are settled, and assets are distributed, the executor or personal representative can request the court to close the estate. The court’s approval to close the estate may take an additional six to twelve months, or longer, depending on the caseload and administrative efficiency of the local court.
Court Confirmation vs. Non-Confirmation Sales
When it comes to the distribution of real estate through the probate process, there is a critical distinction between sales that require court confirmation and those that do not.
- Non-Confirmation Sales:
Non-confirmation sales are real estate transactions that do not require court approval. In these cases, the executor has the authority to sell the property without seeking the court’s permission, as long as the sale is in line with the terms of the will or state law. Non-confirmation sales are typically faster and less costly than court-confirmed sales.
- Court Confirmation Sales:
In some situations, a sale may require court confirmation. This is often the case when there are potential conflicts or concerns regarding the sale, such as disputes among heirs, questions about the property’s value, or potential issues with the sale terms.
Sale Process Under Full IAEA
A reminder from our earlier probate definitions: Full Authority under the Independent Administration of Estates Act gives the executor or personal representative the ability to handle estate matters efficiently without prior court approval. It’s always ideal to have Full Authority, and here’s an infographic of what that looks like in Orange, Los Angeles, and Riverside county probate sales:
Sale Process Under Limited IAEA
If you do end up with Limited IAEA, things may take longer, and you’ll have more hoops to jump through. Here is an infographic for Limited Authority under the Independent Administration of Estates Act:
Probate Sale Rules and Procedures
Listing the Property:
- Appointment Process: To initiate a property sale, the Executor or PR must go through an appointment process and obtain Letters Testamentary or Letters of Administration from the court, giving them the legal authority to manage the estate, including property sales.
- Exclusive Right to Sell: The Executor or PR can grant a Listing Broker an exclusive right to sell the property, current CA law states a 90-day timeframe to ensure timely and active marketing.
- Extensions: Extensions of up to 90 days can be granted if necessary, allowing flexibility for unexpected issues or negotiations, up to 270 days.
- Notice of Proposed Action: If the total listing period, including extensions, exceeds 270 days, the Executor or PR must issue a Notice of Proposed Action to inform the court and interested parties about their intentions regarding the property sale.
- Listing “As-Is”: It’s crucial to list and sell the property “As-Is,” meaning it’s offered in its current condition without significant renovations. Using estate funds for updates may be considered a misallocation of assets by the court, which should be preserved for the estate’s beneficiaries.
- Fiduciary Duty: The Executor or PR is legally bound by a fiduciary duty to the heirs or beneficiaries. This means they must work diligently to optimize the sale price, acting in the best interests of those entitled to the estate’s assets.
Probate Listing Disclosure:
- Probate Addendum: The Probate Addendum is a mandatory document outlining specific terms and conditions related to the sale. This helps everyone involved understand the unique nature of the transaction.
- Specific Disclosures: Unlike standard real estate transactions, the PR/Executor is not required to provide specific disclosures like the Transfer Disclosure Statement and Seller Property Questionnaire. This recognizes the often limited knowledge of the Executor/PR about the property’s history and condition.
- Responsibility for Known Defects: Despite these exemptions, the Executor/PR must disclose any known defects or property issues within their personal knowledge. Potential buyers MUST be informed about significant issues that could affect the property’s value or condition.
The Sale and Beyond
Once the property is sold, the proceeds are disbursed to the estate account. The Executor or PR is responsible for paying creditors and administration expenses, as well as addressing other tasks needed to finalize the estate, such as selling additional assets, settling debts, and resolving remaining issues. They must also submit a detailed report to the court, which will review it and issue an order for asset distribution in line with intestate succession or the terms of the will. After these steps, the Executor or PR can distribute the remaining assets as directed by the court and close the estate.
Considerations When Listing a Property in Probate
When dealing with a property in probate, you need to consider several important factors:
- Court Appointment: Ensure that the court has appointed an Executor or PR for the estate, a critical first step that can take around three months to complete.
- Legal Representation: Determine if your loved one had an attorney representing them in the probate case and maintain effective communication with the attorney for a smooth sales process.
- Beneficiaries and Heirs: Understand who the beneficiaries and heirs are, how many there are, and whether you are among them. Managing expectations and avoiding conflicts is essential.
- Transparency and Agreement: Encourage transparency with all beneficiaries and ensure that everyone is in agreement regarding the property sale to avoid potential objections and complications.
- Minor Beneficiaries: Be aware of whether any beneficiaries are minors, as this may require special considerations.
- Authority: Understand the type of authority you have as an Executor or PR. Full authority under IAEA can streamline the process, while limited authority may require additional court approvals.
- Property Condition and Appraisal: Assess the property’s condition and verify if the appraisal aligns with its current state. If not, consult with the probate attorney to address the issue, possibly contesting the valuation.
Dealing with the complexities of probate after the loss of a loved one can be so emotionally challenging. Our hearts go out to clients in that situation, and we want to help be a resource and a guide. Understanding the process and following the legal steps in the proper order can make a significant difference. We hope this comprehensive guide has provided you with valuable insights and a clear roadmap to navigate the California probate process.
If you’re currently facing a probate sale, don’t hesitate to consult with us. We learned the breadth of this information from Amy Shah at (949) 385-2681, a knowledgeable Orange County probate attorney, to guide you through the legal intricacies. If you’re reading this post before someone passes, Amy can do even better and set up a proper trust, so you never have to worry about probate woes. Remember, you’re not alone, and there’s support available to help you manage the estate efficiently and by the law.
It’s tough to take the first step towards distributing a loved one’s estate. Please reach out, and we can help you move forward with confidence and peace of mind. We’re here to assist you every step of the way.
Properly Bringing a Listing to Market in Orange County, CA
Bringing a listing to the competitive real estate market of Orange County requires meticulous planning and execution. From pristine beaches to upscale neighborhoods, Orange County’s allure demands a tailored approach to showcasing properties. In this guide, we delve into the essential steps to elevate your listing’s appeal, attract potential buyers, and maximize your success.
Your Trusted Partners Every Step of the Way
At AskAngie team, we pride ourselves on our robust network of referrals and connections, spanning every aspect of the property presentation process. From decluttering to staging, photography to landscaping, we have established relationships with experts who share our commitment to excellence.
1. Hauling – Decluttering
Before unveiling your property to the market, start with a clean slate. Decluttering is the foundation of a successful listing. Clear out unnecessary items, depersonalize the space, and create an environment where buyers can envision themselves living.
2. Handyman & Contractors
Address minor repairs and updates to ensure your property is in its best possible condition. Engage reliable handymen and contractors to fix leaky faucets, repaint walls, and handle any other necessary tasks. A well-maintained property reflects positively on its overall value.
3. Organizing
Effective organization enhances a property’s presentation. Closets, cabinets, and storage spaces should be neat and tidy, showcasing ample storage potential. Buyers are often drawn to homes that offer functional organization solutions.
4. Staging
Staging transforms properties into aspirational spaces that resonate with buyers. According to the National Association of Realtors (NAR), staged homes tend to sell 87% faster than non-staged homes. This means less time on the market and a quicker path to closing the deal. NAR also reports that staged homes can sell for up to 10% more than non-staged homes. This increase in perceived value can directly impact your bottom line. A study by the Real Estate Staging Association (RESA) found that 81% of buyers can better visualize a property as their future home when it’s staged. This emotional connection is a powerful driver of purchasing decisions. Our staging connections take this a step further, ensuring your property’s unique features are showcased to perfection.
A Case Scenario: Elevating a $1 Million Listing with Staging
Consider a stunning Orange County property listed at $1 million. You’re faced with the choice of investing $10,000 in professional staging.
Scenario A: Without Staging
Without staging, potential buyers might struggle to envision the property’s potential. The property might linger on the market, potentially leading to price reductions and longer carrying costs.
Scenario B: With Staging
Now, imagine investing $10,000 in staging. The property’s features are highlighted, creating an enticing environment that resonates with buyers.
Here’s the breakdown:
- List Price: $1,000,000
- Staging Investment: $10,000
Staging could lead to a conservative 5% increase in the final sale price, amounting to an additional $50,000. Subtracting the $10,000 staging cost, you’re left with a net gain of $40,000. This illustrates how staging not only enhances your property’s appeal but also potentially greatly impacts your financial return.
5. Landscaping
Orange County’s natural beauty is one of its major attractions. Enhance your property’s curb appeal by investing in landscaping. Well-maintained gardens, vibrant flora, and manicured lawns create a lasting first impression on potential buyers. Our cost-effective landscaping solutions make the exterior of your home “pop,” setting the tone for what’s to come.
6. Professional Photos
Captivating visuals are key to online engagement. We understand this, which is why we provide professional photos for every single listing. High-quality interior and exterior photos highlight the best features and create a lasting impact.
- Increased Engagement: According to a study by the National Association of Realtors (NAR), listings that feature multiple high-quality photos receive 118% more online views compared to listings with fewer photos or lower-quality images.
7. Drone Images
Aerial imagery provides a unique perspective of your property’s surroundings. Drone images showcase proximity to amenities, scenic views, and the neighborhood’s charm, giving buyers a comprehensive understanding of the property’s location. Certain areas may be no-fly zones, but when permissible, we provide captivating drone imagery for all listings.
8. Customized Website
Our commitment extends to creating a customized website for your property. Optimized for SEO and featuring virtual tours, this platform immerses potential buyers in your property’s details, leaving a lasting impression.
9. MLS Listing & Open House
Multiple Listing Service (MLS) is a platform that exposes your listing to a wider audience of agents and buyers. Complement the online presence with traditional open house events, offering interested parties an opportunity to experience the property in person.
- Higher Sale Price: According to the National Association of Realtors (NAR), homes listed on the MLS tend to sell for about 20% more than those sold by the owner.
- Qualified Buyers: MLS listings attract serious buyers actively seeking properties, increasing the chances of securing top dollar.
- Competition and Bidding: MLS exposure can lead to multiple offers and competitive bidding, driving the final selling price higher.
- Expert Representation: Utilizing the MLS with us positions your property strategically, contributing to higher offers.
Properly bringing a listing to market in Orange County is a multifaceted process that demands attention to detail and a deep understanding of the local real estate landscape. By strategically implementing decluttering, repairs, staging, and engaging visual content, your property can captivate potential buyers and stand out in this competitive market. From stunning photographs to open house events, each step contributes to a comprehensive approach that maximizes your property’s appeal. Embrace these tactics and set the stage for a successful property unveiling in the vibrant Orange County market.
Whether you’re buying, selling, or investing, AskAngie team expertise will guide you through the process seamlessly. Don’t hesitate to reach out and connect with Angie today at 949-338-7408. Your dream property or lucrative investment opportunity awaits – and our team is here to make it happen. Contact us now to begin your journey towards real estate excellence.
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Time IN the Real Estate Market vs Timing the Market
Have you heard this saying? Time in the market refers to the concept of consistently investing in the stock market or real estate market over a long period of time, rather than trying to predict short-term movements and making trades based on those predictions. Timing the market, on the other hand, involves trying to predict when prices will go up or down in the short term and making trades accordingly.
Time IN the market only works if you select an investment that will be relevant over the long term. This is why we love real estate – people will always need land and a roof over their heads. This is the main reason property continues to appreciate long term – there is always a level of demand. You can’t just pick any property, though. Be diligent about selecting something that will stand the test of time, both location & build-wise.
Choosing the right property:
- Location and Accessibility: Choose a property in a well-established and desirable location with convenient access to essential amenities, public transportation, schools, and commercial centers. A prime location maintains its value over time and attracts a steady demand from potential buyers or renters.
- Build Quality and Materials: Prioritize properties constructed with high-quality materials and craftsmanship. Well-built structures not only endure the effects of time but also require fewer maintenance expenses in the long run, preserving their appeal and value.
- Future Development and Infrastructure: Research the area’s development plans and infrastructure projects. A property that is poised to benefit from future improvements, such as new roads, parks, or community facilities, is more likely to appreciate value and remain relevant over time.
- Adaptability and Flexibility: Look for properties with versatile layouts and features that can accommodate changing lifestyle trends. A space that can be easily modified or repurposed to suit evolving needs ensures its long-term relevance and appeal to a broad range of potential occupants.
- Resilience to Environmental Factors: Consider the property’s vulnerability to natural disasters and environmental changes. Opt for structures that are designed to withstand local climate conditions, such as earthquakes, floods, or extreme weather. Investing in a property that can endure environmental challenges minimizes the risk of significant damage and devaluation.
Know what to expect with property cycles
According to information available on the California State Board of Equalization website, every neighborhood & city has 4 cycles – it’s good to be familiar with them, so you can ride out any bumps on the road:
- Growth: a period during which the area gains in public favor or acceptance.
- Stability: a period of equilibrium without significant gains or losses.
- Decline: a period of diminishing demand and acceptance.
- Renewal: a period of rejuvenation and rebirth of market demand.
Tracking your real estate investments
It’s also critically important to know where your property is at price-wise and watch the numbers just like you would watch your stock portfolio or money market account. Your property value will always fluctuate. We offer informational free reports emailed monthly & recommend you sign up today if you aren’t already receiving similar reports. Our value system takes a comprehensive view of any single-family home in the US – sign up here https://hmbt.co/TTNcDG.
It’s also important to note that trying to time the market is generally considered to be a risky strategy, as it’s extremely difficult to consistently predict short-term market movements. In contrast, time in the market has been shown to be a more reliable way to achieve long-term investment success, as it allows you to take advantage of the natural ups and downs of the market over time.
Grandma appreciation scenarios can be helpful to consider when thinking about the long-term benefits of owning a home. For example, let’s say you buy a home for $500,000 and the market appreciates at a rate of 5% per year. After 20 years, the value of your home would be about $1.1 million. If you had instead rented for those 20 years and paid an average of $3,500 per month, you would have spent around $840,000 on rent, and you would have nothing to show for it at the end.
In the current market, rates are rising and prices are still high, which can make it a challenging time for first-time homebuyers. However, it’s important to remember that owning a home or land for 20-40 years can have a significant impact on your financial future and retirement. In fact, homeownership has been shown to be a key factor in building wealth over the long term, as homes tend to appreciate in value over time.
If you’re considering buying your first home but are worried about the cost, it may be helpful to work with a financial advisor or mortgage professional to explore your options. Derek Beisner, Certified Mortgage Planner, can help with a rent vs own analysis that will give you some research and can provide you with more information about the benefits of homeownership. If you don’t have the down payment, you may want to consider the Vow2Save program, which can help you save for a down payment on your first home or investment property.
Ultimately, it’s never a bad time to buy your first home, as long as you do your research, work with a professional, and carefully consider your financial situation and long-term goals. If you’re ready to take the next step, don’t hesitate to reach out to Angie for a no-obligation consultation about buying your first home or investment property at 949-338-7408.
Share your real estate success stories
We’d love to hear your stories and insights about how time has shaped your experiences IN the market. Share your anecdotes, observations, and lessons learned in the comments below. Your point of view could offer valuable understanding to individuals navigating the realm of real estate!
Read Full Post | Make a Comment ( None so far )The Rest of 2023 in OC – What Should Homebuyers & Sellers Expect?
As we delve into the second half of 2023, we must base our expectations on solid data rather than opinions or noise. Following the market and analyzing reliable data sources is key to understanding the projected trends. One such valuable resource is Reports on Housing, which offers an insightful analysis based on robust statistical information. Recently, Steven Thomas of Reports on Housing shared his perspectives on the Orange County 2023 real estate market during a visit to our Newport Beach office. Let’s explore some of the key takeaways from his presentation.
Interest Rates and the Debt Ceiling: Interest rates continue to be a significant factor impacting the current real estate market. The debt ceiling presents a challenge to the economy. In the past, when the debt ceiling was reduced in 2011, the market experienced an immediate boost. Therefore, there is hope that the Federal Reserve will take measures to address the debt ceiling again. It’s worth noting that when short-term rates rise, long-term rates often decline.
Defining the New Normal: We are still in the process of settling into the “new normal,” and this is evident in the real estate market. Buyers are capping their purchase prices lower than what was observed in 2020 and 2021. This adjustment reflects the evolving market conditions and buyers’ response to affordability and changing interest rates.
Commercial Market Impact: Unlike the residential market, commercial real estate is expected to experience a downturn due to different loan terms. However, residential sales currently maintain the lowest delinquency rate since the inception of Reports on Housing’s tracking. Barring any major incidents, there is no expectation of a short sale or foreclosure market in the near future for the residential market. Commercial real estate is projected to have a much bumpier road.
The “Slowcession” and Interest Rates: Rather than predicting an upcoming recession, Steven coined the term “Slowcession” to describe the anticipated economic environment. This slowcession would involve interest rates ranging from 4.75% to 5.75%. Presently, rates stand at 7%. Economists generally agree that interest rates will eventually decrease; the question is when. Hence, it is advisable to focus on finding the right house while keeping an eye on interest rate fluctuations. The target will continue to move.
Tandem Relationship: 10-Year Treasury and Mortgage Rates: A noteworthy insight from Steven is the 50-year tandem relationship between the 10-year treasury and mortgage rates. Monitoring the 10-year treasury can provide valuable insights into the future direction of interest rates, as the two usually dance together.
No Financial Crisis Expected: Statistics also express consumer confidence that a financial crisis is not imminent. Although some regional banks may undergo absorption, this is considered a typical occurrence in the industry. Recent bank runs have not seriously impacted our Orange County real estate market.
Supply Crisis and Price Stability: The current real estate market in Orange County faces a supply crisis, with historically low inventory levels. Even during the lockdown period, there was more inventory available than there is now! This scarcity of available homes is the main reason prices remain high despite the increase in interest rates. The peak of available inventory is expected in July, after which it will continue to decrease.
Opportunities for Buyers: It is currently advantageous, but an uphill battle, to be a buyer in today’s OC market. Renters, in particular, should consider transitioning to homeownership, as paying rent does not contribute to building equity. High rates have sidelined some buyers, so competition is not as fierce as in 2020-2022. But there is still plenty of competition, in fact, at least 2 buyers statistically for every home available. It is expected if interest rates decline in the future, it will attract more buyers back to the market, resulting in increased competition. Therefore, it’s advisable for potential buyers to act promptly and capitalize on the current conditions…there are not necessarily sunnier skies for buyers in the near future.
Sales Cycles and Demand: The typical sales cycle in Orange County follows a pattern: spring is the best time for sellers, followed by summer. It’s ALWAYS safest to be in escrow by July 31st, as fall is the third most active season, and winter is relatively slower.
Buyer Trends: Currently, buyers are more focused on securing favorable loan terms rather than their dream home, and logic often outweighs desire. Entry-level homes are highly sought-after, but bidding wars make it challenging for buyers to acquire them. Balancing the market would require an increase in inventory to accommodate the demand from millennials and compete with downsizing boomers. Buyers are ‘playing it safe’ and frequently purchase a bit below the level they qualify for.
Affordability and Market Time: The average median payment for California properties historically stood at $3,590 per month. Presently, that figure has risen to $7,290 per month. This dramatic increase highlights the reduced affordability caused by rising prices and interest rates. Additionally, the market time for Orange County properties is currently at 39 days, indicating an intense seller’s market, though less severe than the previous year. Somehow buyers are still absorbing current prices.
The second half of 2023 is expected to outperform the same period in 2022, with an increase in sales predicted for 2024. Both buyers and sellers need to maintain the right mindset and exercise patience in this dynamic market. Rental demand remains high, and rents are unlikely to decrease, making homeownership an appealing long-term investment. If you know someone who is renting, encourage them to explore the benefits of owning real estate and building equity. You can always reach out to Angie at 949-338-7408 for guidance & tools!
By focusing on reliable data and insights, we can project the real estate market for the rest of 2023. Steven Thomas’s presentation provided valuable charts & perspectives on the Orange County market, emphasizing the importance of monitoring interest rates, addressing supply crises, and making informed decisions as buyers or sellers. As the year progresses, maintaining a patient and adaptable mindset will be crucial for navigating the ever-evolving real estate landscape.
Ready to navigate the 2023 real estate market? Whether you’re a buyer or seller, seize the current opportunities and make informed decisions. Connect with us today to get expert guidance and achieve your real estate goals. Don’t miss out on the potential benefits awaiting you in the market. Fill out the form below or text for an appointment:
The 2023 CA Housing Market Forecast: What You Need to Know
The California housing market is always changing, and it’s important to stay ahead of the trends if you want to be successful on your real estate journey. That’s why we were so excited to have Jordan Levine, Chief Economist at C.A.R., give a can’t-miss forecast of the housing market for 2023 at the ReImagine conference last week.
This valuable data will provide insight into today’s pressing housing issues that may impact your equity and your largest investment in the future. It’s essential information for anyone who wants to stay ahead of the curve in California real estate!
Forecast: Chance of Rain in seller’s paradise
Our economy is getting hit with a lot right now, so it’s important to keep an eye out for the clouds! We just finished years of sunny skies in terms of equity and appreciation, but the buyers running after starved inventory have been a bit burnt out.. and now loan rates have hit them with a huge gust of wind on top of it.
Low low interest rates the last 10 years had allowed buyers to continually increase purchase prices, and still have an affordable payment. It looks like that trend is now dissolving, which brings cloudy skies to our CA real estate market.
If you’re looking at the big picture, our 2022 Jan-June market was white hot, and 2021 had the highest volume of California home sales in an entire decade, over 450,000 homes were sold. 3 out of 4 homes sold over the asking price in 2021. The average days on the market was 7, when it’s historically 30-90 days. This type of supply & demand is not healthy, and it had to ‘simmer down’ eventually. Welp… here we are. We are catching our breath; including agents and lenders who have been pelted the last 2 years.
What Does This Mean for CA Buyers and Sellers?
If sellers are confused why buyers are now offering less than the asking price, the interest rate boost adds an additional $1600-1700 per month for the EXACT SAME HOME.
If buyers can’t qualify for the same amount as they could previously, that will affect our property prices. We are now at less than 20% of individuals in California who can afford a home. It’s not as bad as we have been, but it would still be nice if more people had homeownership as an option.
Warning: Rate pressure is building. Mortgage Rates might get worse.
Because rates may go even higher, its critical to price your homes right and maintain realistic expectations. Because every local market is different, what you see on national news is not necessary YOUR reality. And what you see in the newspapers… remember gloom & doom headlines sell, and the news needs subscriptions. Don’t get caught thinking Southern California prices are on a cliff, when we are just panting on the side of the road from exhaustion. Properly priced homes will always sell.
Fact: The sky is not falling
It’s not projected we are heading into a foreclosure market. Homeowners still have over 122K average in wealth, and renters are no better than they were 40 years ago, with a 6K average net worth. The total net worth of consumers is down right now, so we should expect some pushback. Now is NOT the market for Brother in law effect…’my BIL said xyz’. Now is the market to look to the true professionals and experts to guide you. The news outlets are also not experts. Active real estate agents and mortgage lenders are.
Forecast: What does the future for Orange County real estate look like?
Historically, our new rates are still low, and we should be looking at them as the new normal. According to multiple experts, we shouldn’t expect rates to go back down again in the near future. It’s still a great time to buy a home if you’re renting, and the renters were some of the most ignored in our previous market, so you will see them come back into the fray. Buyers who were at the cusp of affordability may unfortunately be priced out of the market, or they will be offering lower than asking price because they are literally chasing the property that was affordable with 6 month ago rates.
Sellers who listed 30-100K over the previous summer comps will likely have to reduce price or face their listing expiring. It’s a good idea to research sales in the community (comps) the last 90 days, and see what the median comp range is. Listing at the top of your comp range with the current market temperature could cause the home to sit frozen on the market. Not to worry though, properly priced homes in Southern California will always sell. Make sure you work with a seasoned professional and list at the right price from day 1, or you could suffer. Discount and ibuying brokerages don’t do well in this type of market – beware!
Many investors, seeing the writing on the wall with interest rates, are putting 1031 exchanges in motion, and adjusting portfolios accordingly. Some are tiring of strict Los Angeles rent control and housing regulations, and are opting to relocate investments to neighboring counties or even other states that don’t impress as many regulations or red tape.
If you’re curious about the range of your home’s worth, including short term and long term rental rate averages, click here: https://hmbt.co/TTNcDG – If you would like to receive monthly Orange County and Los Angeles real estate reports simply sign in to the link above for a free account – it’s that easy! Angie is only a call or text away if you would like a full broker price opinion on your home or investment property 949-338-7408.
Creative, Affordable, Durable, Sustainable, & Adorable ADUs in California
Cal Earth inspirational workshops and hands-on classes offer a new way to build real estate
Today we took a field trip to the Cal Earth build & test site in Hesperia. This educational builder camp sits in Hesperia, CA because it has extreme heat, freezing cold temps, and is on a fault line. Additionally, Hesperia experiences flash flooding & washes, so it makes for a perfect test ground.
Superadobe buildings are Seismic & earthquake proof, fireproof, flood, & wind proof. They can handle snow loads and pressure. They don’t need rebar or concrete to build. They look super creative & flowy, but they are actually extremely structurally sound.
Many of the test structures at the Hesperia Cal Earth site are not maintained on purpose to see how they stand the test of time. This school has truly been built out by its students, and the first structure built in 1990’s is still standing today. It was such a fascinating experience!
Meet the Superadobe
If needed for refuge or quick builds, these structures can pop up camp in just a couple days. ‘Water village’, pictured here with Cal Earth volunteers Giovanni & Marco, is an on-site example of a cluster of single room homes, built to serve as a replica of what an actual refugee community might look like. Although designed to be temporary housing, this little village has been standing for the last 20 years.
Since superadobes are so durable, they can also stand the test of time for single family builds. Don’t feel like buying a ‘cookie cutter’ tract home? Cal Earth Institute offers preapproved plans – if you sign up for one of their workshops you’ll get a copy 😉 Of course, this is a part of the reason why we went. What’s a workshop without implementation?
We’d love to hear in the comments if you know anyone who has built a superadobe, or if you plan to build one yourself.
What Makes an Adobe Home a Superadobe?
Nader Khalili is the inventor & architect from Iran, who used to build skyscrapers for a living in Los Angeles, but he wasn’t fulfilled. He discovered Rumi, & changed his direction into sustainable building.
Not long after, Nader invented the ‘superabdobe’; which is a permanent Adobe structure. Rather than a traditional Adobe that cannot withstand a natural disaster, Superadobes are much more durable. Nader has since moved on from this realm, but his vision lives on through Cal Earth Institute.
Khalili loved biomimicry, mimicking designs and structures from nature. His designs include the ‘Seashell dome’; ‘Reptile walls’; and the ‘Koala pouch’. Not everything was biomimicry, however. The dome-obsessed architect also incorporated roofless domes for high heat; apses, and pottery domes.
Supply List to Build a Superadobe ADU
I loved how easy the supply list was. These were things that even I could carry, and didn’t need a huge truck to transport.
- 4 pt double pronged galvanized barbed wire; 12-14 gague thickness.
- 14 inch diameter bags to make 12 inch walls, just FYI you lose some width when you fill the bag with earth.
- Need coffee cans, or gallon buckets, depending on width of bags.
- Shovels,
- Tamper,
- Wheelbarrow,
- Scissors or knife
- A cement mixer or electric mixer makes things go way quicker.
- Level
- Wire cutters
- Water source
Want the FULL supply list? That’s still super short? Just TEXT “Cal Earth Supply List” to Angie at 949-338-7408.
Another thing that’s really neat is you don’t have to build a shelter at all with the earthbags from Cal Earth. You can build benches, stairs, planters, pools, fountains, fences…an Amphitheater for your Hipcamp…or whatever flowy and functional structure your mind conjures up 🙂
Pictured right is Daniel & our new Cal Earth workshop friends practicing with with the tamper. I can just see his wheels turning about what the next Flower Den Superadobe Retreat will look like – stay tuned, LOL!
Tips For Building a Superadobe Structure
A fun fact about superadobes is the heat transfer from outside is only at about one inch per hour. It won’t get too hot or too cold over the 12 hour daylight or nighttime hours. Not only do adobe’s prevent heat, they absorbs it, so that warmth slowly transfers inside to keep you comfortable at night.
Our first tips are about measuring and prepping properly for your fill:
- When laying barbed wire, measure from the center of your bag, and add 2 extra feet.
- When measuring for bag, walk the perimeter of the circle, and add 3 feet before cutting.
- Fold long bags in half & mark the middle. ‘Cuff’ the ends so plastic doesn’t fly all over.
- Partially flip bags inside out from each side, this makes them easier to fill. Be mindful to ONLY fill one side at a time.
More Pointers for a Proper Adobe Build
Since your main ingredient is earth from the land you’re standing on, you’ll want to ensure you’ve got the right mix. As you’ll be investing a lot of sweat equity, make sure to do a soil test before building to know how far you’ll need to go down in the earth to get past the living matter. It was stressed multiple times, make sure no living matter or roots are in your mix. Rocks bigger than your palm need to go too. If you can close your hand around it, then it’s fine, but larger than that should be tossed from the mix. Don’t worry though, it’s very forgiving to make the mix – there are adobe and superadobe structures across the world, & in all different types of terrain.
The tips kept flying fast at our one day workshop; I caught as many as possible. Figure they are best served here as bullet points:
- Keep everything dry & well ventilated if you are building in a wet area.
- Thickness of the wall depends on diameter of the build.
- Stabilize to resist erosion in flood zones, plan French drains & diversion. Your french drains can even be designed to water the landscape 😉
- Plan where the furniture will go before you start to build because a lot of it is built in; remember most furniture is square.. and there will be limited to zero squared angles in an adobe build.
- In case you’re only reading the bullets here, reminder to never use the top 1 ft of soil. Dig deeper to get to the inert materials like the sand, gravel, clay & silt.
- Orient windows south. Create & plan ‘Wind scoops’ facing the main direction of breeze in summer.
- PVC pipes, ceramic tubes, or even recycled bottles can be used for windows. Check out the custom ceramic windows pictured here.
- If doing radiant heat in floors, insulate under first!
- Utilize rocket stoves for simple heat sources.
- By the time you build up, its already compacted.
- Plaster right away, but don’t lay it in too thick, or else it may crack.
- Mesh or chicken wire is recommended to prevent cracking.
- Waterproof paint in wet areas.
- Note that limewash interior is anti fungal.
- If the bag needs to move, lift & pull. Don’t push.
Super Adobe Construction Made Simple
In essence, 4 main ingredients can build a pretty badass house. Sandbags, barbed wire, earth, & stabilizer. So easy. Sandbags can be made from polypropylene, hemp, or jute fiber. You can use long bags designed for adobes, or, just normal sandbags might work best if you’re doing the build with only a couple people. Stabilizer is added in the bag, like lime or plaster. From there, you’ll just cover the bags from UV rays and the elements while you build with a tarp, and you’ll be good. Note that jute might mold or rot, so it’s not recommended to build with it in winter. Supposedly jute is better for short term structures. The barbed wire acts as a velcro or glue between layers of bag and prevents the building from laterally sliding.
It seemed like the toughest part of the day was ‘completing the circle’ – which was the act of finishing each circular level on the stem wall. (That’s the straight vertical wall) It wasn’t difficult so to speak, just a process of folding both ends away from you, after propping the bag up with your feet (known laughingly as ‘bag wrangling’). Once the ends are properly sealed, you meet them up while keeping a tamp as a buttress at the seam. Then tamp the edge a bit so water goes out not in, with a slight angle to the outside. You can literally hear when the earthbags are tamped to correct compaction, the sound is louder and almost echos.
Additional important building techniques include a spring line for keeping the dome structure and trajectory of the dome even, and a compass to guide with proper perimeter and height. All these things were hand created with various tools and scraps we had on site!
Some Challenges Surrounding Superadobe Plans & Builds
No good thing comes without hurdles. In our current days of ‘buying a template ADU off Amazon’, the custom adobe build can face opposition.
Because the design elements with Superadobes are endless, it causes city officials to scratch their heads a bit. Designing these structures to easily follow the contour in the land and mold to the topography makes each one super cool, and super unique.
Let’s be honest….building officials are used to templates and squared angles. They don’t always understand domes, arches, and curves; and they aren’t extensively educated about them in the field. Confusion and inspectors don’t mix, so this means they can tend to deny the plans for your dream adobe without the proper education.
There was a point in time when Cal Earth had pre-permitted build plans, but alas, codes are everchanging… and they need to update permits. Feel free to donate time or funds to help Cal Earth get to the point of offering preapproved plans again.
Our Action Items to Support Superadobes
Locally here in CA, I’m going to see if we can get the City of Santa Ana to approve something. As Orange County’s epicenter, Santa Ana already has a ton of ADUs. Plus, many of the lots are flat with ample space for an additional small structure. And… my partner in life, Daniel, plans to talk to the building department in Sedona, AZ. We know Taos, NM is friendly to superadobes and green buildings; and would love it if you comment other adobe friendly build areas for the fellow nomads reading this blog 😉
In the meantime, one potential workaround with your city or HOA, depending on which one you’re in, is the umbrella of California’s statewide ADU law passed in 2020, SB 13.
How to Spread the Word about Superadobes and Get Involved
Of course, social media awareness always helps! You can follow & support Cal-Earth’s initiatives on Insta or Facebook. It also helps if you sign up for one of their affordable and educational hands on adobe building workshops.
If you’re inspired or thinking of building an ADU in Orange County, reach out, I’d love to come do a video tour whether you’re in progress, or have the finished adobe complete. Thought we could wrap this post up with one of Cal Earth’s favorite quotes from, you guessed, it, Rumi:
California Introduces New Legislation: Senate Bill 9 – What Is It?
Senate Bill 9 is a new California state law that would allow homeowners to divide their property into 2 lots and place up to 4 homes in areas that were previously only allowed one home, regardless of local zoning. You could use SB9 to split your lot (and sell that part of your yard), add a 2nd home to your lot, or both. Taking effect on January 1, 2022, SB9 intends to address the statewide housing crisis California is experiencing. The goal is to expand housing production as the continued housing crisis grows. The hope is that this bill will expand housing options for people of all incomes and expand the opportunities available for homeowners and renters. Two homes could be placed in what is now considered a single-family lot. The new lots would be required to contain 40 to 60 percent of the original lot space. What does this mean for homeowners and the real estate market? Two important things: 1) You could keep your current home but earn additional revenue by selling a part of your property to a new neighbor and 2) this bill could potentially add as many as 800,000 new units to the California market. SB9 would require cities and counties to approve of the housing development proposals if they meet the specified size and design standards. Some of the requirements considered for the proposed housing development include but not limited to: the area does not require demolition, ordinance, is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated as a city or county landmark, historic property or district. If the identified requirements are met, the application for a housing development could be approved without a hearing. The new four-plexes would still need to follow local zoning rules and regulations in regards to things such as height and yard requirements. To learn more about the new legislation, here are some helpful links that provide additional detail: 1) National Law ReviewIncludes a summary of SB8, SB9 and SB10. Key takeaways are also included for quick reference. 2) CA Legislative Information The details of Senate Bill No. 9 and the proposed bill |
5 Reasons to Have a ‘For Sale’ Sign in Your Yard!
Read Full Post | Make a Comment ( None so far )1. A For Sale sign will give your home more exposure! Exposure that online posting just can’t offer! Here are a few things that having a For Sale sign can do for you and your sale process!
2. A For Sale sign can broaden the neighborhood boundaries that potential buyers may have not have considered yet. When potential buyers are scrolling through Zillow to search for potential new homes, they might restrict their online searches and not view any homes in your neighborhood. Having the sign in your front yard can attract potential buyers as they pass through the neighborhood.
3. Your neighbors will know you are selling your home! If your neighbors are not in the market for a new home, they may not see that your home has become available. Your neighbors may share the house link with their friends or family who are in the market for a new home. Everyone wants good neighbors!
4. A For Sale sign can provide potential buyers with a direct contact (your Realtor). If potential buyers come across your for sale house and have questions, they know who to contact with their questions.
5. Many potential home buyers start their home search on Google, Zillow and other real estate search engines. Online searching is efficient and makes it easy to save your favorite homes. Having a For Sale sign in your yard will give potential buyers the opportunity to snap a photo of your home, the sign, and add it to their online searches later.
Questions? Reach out to our team, we are here to help!
Top 3 Stores in Orange County to Shop for Consignment Furniture
Shopping for new home items can be so exciting! Filling a house with your unique furniture, decor and style is what makes a house feel like a home. Instead of filling your new home with items that all major furniture stores provide, consignment shopping allows you to design your home with unique, quality brand name pieces that are unique to your home. While you’re shopping for your home, you may even think of items you would like to consign! From furniture, to clothes, to just extra household items, you can consign your items before shopping for new! Check out our list of the top 3 stores in OC to shop for consignment furniture, based on personal reviews and experience.
Home Consignment Center – Newport/Irvine
Located in Irvine, California – Home Consignment Center offers a variety of furniture:
- Accent tables
- Home office furniture
- Bedroom sets
- Coffee tables
- Patio furniture
- Entertainment centers
- Dining room furniture
- Sofas
- Armchairs
They accept all kinds of furniture, from expensive heirlooms to trendy homegoods. You can drop off your items or they can arrange for pick up. Find their website and more information here.
Address: 18910 Teller Ave, Irvine, CA 92612
The Legacy Center Furniture
Located in Costa Mesa, California – The Legacy Center Furniture store offers a variety of high end items. You can submit a quote of your items directly through their website here.
Address: 2215 Harbor BlvdCosta Mesa, CA 92627United States
The Hunt Fine Consignment
Located in Laguna Hills, California – The Hunt Fine Consignment offers a variety of design, architecture, age and intrigue. The Hunt loves stylish furnishings and items that are antique, new, vintage, unique or just decorative for homes. They take any kind of items. They also accept large volume consignments, abandoned containers, or business closings.
For more information and to learn about the consignment items they have, view their website here.
Address: 23461 Ridge Rte Dr suite a, Laguna Hills, CA 92653
Congrats! You Made It To Escrow! Now What?
Your offer has been accepted – congratulations! You’re ready to settle into your dream home and enjoy a glass of wine. The only thing standing between you and the keys to your new home is escrow, so now what? You’ve probably heard the term escrow (also referred to as closing) thrown around but didn’t quite understand what it meant. Escrow is something most people don’t fully understand until they experience it. In a nutshell, they are your neutral third party assisting to ensure the contract is executed correctly by all sides.
The Orange County Escrow Process Made Easy
Escrow protects all parties involved in the real estate transaction (including you)! Escrow is a third party service that holds a valuable asset (in this case – your “earnest” money) until the transaction between the seller and the buyer is complete. Once your offer is accepted, an escrow company is hired to implement the transaction in accordance with the terms of the sales agreement.
Does A Home Buyer or Seller Choose Escrow?
Not all Escrow companies are created equal and we always prefer to work with companies we know and trust. That said, it’s our advice to negotiate price over services. If you are a buyer, you may get the seller to accept your offer or your price if you let them choose the escrow company. In most Orange County and SoCal cases, the seller selects the escrow and title companies used for closing.
What Happens Next? How Do We Close Escrow?
It’s a series of steps in a specific order of operations. Your escrow, title, and lender will know it all and help guide you through. As your Realtor, it’s our job to make sure they are all doing theirs. Sometimes it feels like a circus and sometimes it feels like a symphony. Rather than writing you a book, here’s a fun graphic thanks to Finance Of America Mortgage to guide you through the main hurdles, contingencies and objections to overcome!
5 Tips To Make Your Escrow Process Run Smoothly
1. Let Your Lender Lead The Way!
You’ll need to sign loan disclosures before an appraisal can be ordered, so do everything your lender requests and do it promptly. This is the BEST way to have a smooth escrow.
2. Complete Documentation
The purchase agreement must be completed with signatures from all parties. The Escrow officer will send a package of paperwork, make sure to be on the lookout for this paperwork and complete it promptly. Signing documents online will help you stay organized.
3. Sign On Time
The purchasing of a home will require a significant amount of paperwork and legal documents. It is important that all of this paperwork is signed and in a timely manner to ensure that the sale may proceed without any delays. The escrow officer will take possession of these documents to ensure that all necessary paperwork has been completed, signed, and filed on time.
4. Communicate!
Check your email regularly! Your escrow officer will be reaching out to all parties involved frequently! Your escrow officer might need a signature sent over in a timely manner.
5. Halt Credit Utilization – You’re In A Financial Fishbowl
During the closing process, your financial history is being reviewed carefully and frequently. A change in your financial circumstances could implode the escrow process. You have made it this far based on your current financial standing – if changes occur lenders have the right the always make drastic changes.
Learn about what to avoid when closing on a mortgage here:
3 Ways To Mess Up Closing
If you are ready to get your escrow process stated, contact Angie Weeks at 949-338-7408!
Read Full Post | Make a Comment ( None so far )How To Buy Property In Iceland
Vacation Homes in Iceland
As more and more Americans become internationally savvy investors, we love bringing you experts and tips on how to safely buy abroad. Iceland is a gorgeous country and it’s growing quite fast – which means opportunity knocks!
Iceland’s capital is Reykjavík, so we scoped out a quality agent who has been selling there for more than 5 years – Pall Palsson. When you are considering a purchase as a newbie to a country, you do not want to work with a newbie agent! It’s a really good idea to ask your main Realtor if they are an International Specialist (CIPS) and if so, they can help pair you with a good fit in the country you plan to purchase.
RESEARCH is key, and that’s best done with a team. Iceland currently has a stable government, currency, and job market. Iceland is one of the fastest growing real estate markets in the world. Iceland has an even market right now which makes it easier for both buyers and sellers to obtain their goals. It also means their are enough houses on the market if you’re looking for your next big move!
Here’s an interview with Pall that goes more in depth about the current real estate market in Iceland:
Other factors to consider are education, cost of living, and climate.
As far as climate, Iceland tends to have very short summers that are still chilly and usually pretty cloudy. If you’re from California, it would be quite the opposite of the sunny beautiful weather we are used too! Their winters are very long and wet, but if the snow is something you love – it’d be perfect for you! The temperature in Iceland hardly ever drops below 17 degrees which if you’ve ever been to the Midwest where it drops down to a brutal -20 with wind chill often during the winter months then that might not seem so bad. You won’t usually see the temperature rise much higher than 62 degrees in Iceland. The absolute beautiful of this country may sway you to deal with the cold anyways – we’ve truly never seen such beauty.
The cost of living in Iceland is close to comparable to Southern California right now – expensive. You can get a 2 bedroom 1 bath town home around $350,000 – $400,000. If you’re able to afford that and even spend half of your time in a place with such outstanding sights to see you’d be living your best life.
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Equity Shares – Buying a Home Despite Student Debt
Student Debt Does Not Have to Prevent You From Owning a Home
There’s a lot of us out here now that are facing the consequences of hefty student loan debt. Investing in our education can sometimes feel like a losing battle but it is still important to invest in your future. Part of investing in your future is thinking of buying a home so that you aren’t piling on money every month for rent when you could be owning something instead. Many graduates don’t think they can ever own a home while paying on their student debt, but that isnt the case. There are a lot of things that Realtors can help you figure out when you are ready. One of the easiest solutions is for your parents to cosign the loan with you.
Equity Shares
If you’re a responsible student or graduate that has a job and wants to buy a home but have a hard time getting approved for a loan due to overwhelming student debt, you can have your parents or someone in your family cosign with you so that you are able to take out the loan. This equity share is just saying they are equally sharing the responsibility with you for your loan. You would make the payments, but their name has to be on the loan insuring lenders that if for some reason you couldn’t pay, your family would have your back in making that payment for you. This helps both of you out because you are building positive debt instead of throwing away money renting something you could own for less. Parents are able to build positive debt for themselves while also helping their children out who are making the payments anyways.
Setting Our Kids Up For Success
As parents we always want what is best for our children. We are always looking for ways to improve ourselves as parents so that our children grow up into the best versions of themselves. Many of us expect our kids to go off to college after high school and pursue a higher education for their future careers. However, we don’t always think about how much that is going to cost them not only financially, but also in time and future reliabilities. The average student loan debt for a four year degree in 2015 was $30,100 – that’s a lot of money! Knowing that information it makes it easier to understand why younger adults aren’t owning homes because they simply can’t get approved with that kind of debt racked up. This is where parents come in again, wanting what is best for our children and helping out wherever we can. Helping your kid with a down-payment on their first home is an amazing investment! If you aren’t able to help them with their down-payment to get them approved you can cosign a loan with them so that the lender feels more confident and lending them money to purchase their first home. They invested in their education, now it is our chance to invest in them and their future family’s home.
If this is something you think would work for your family and you want to see what else you can do to get approved or help your child get approved for their home text Angie at 949-338-7408! She plans on getting you in with a down payment source and herself to answer any questions or concerns you may have!
Read Full Post | Make a Comment ( None so far )Ringing in 2019 with Real Estate Goals
What will your 2019 look like?
We have some big goals for 2019 – one of them being helping our clients achieve their real estate new years resolutions! Whether it’s buying internationally or crowdfunding a down payment for an engaged couple, we can help you accomplish them all. Every year our whole team writes down their goals for the new year and we try to help each other accomplish them. This year, we want to do the same with all of our clients. Writing them down and being able to cross them off when they are accomplished really makes you feel good and it will make us feel good to be able to help you do that.
AskAngie Team’s Goals
Our team has a few things were really excited for this year! This year we plan to really grow our Vow2Save program. We are looking forward to helping a lot more engaged couples crowdfund a down payment so that they are able to buy a home after their wedding. This has been a goal of ours for a few years, and after a lot of work in 2018 we know it is really going to be taking off this year and we can’t wait to see the things it can do for people! We also plan to travel more this year in order to have the best information in helping our clients buy overseas. Last year we went to Spain and met with Realtors there, but we want to be able to do that in many more countries.
So much more we can do for you!
If you need help selling or buying a home after a divorce or identifying a good AirBnB investment we can help with that and everything in between. We have various services that we are experienced in. Another goal we know some of our clients have is to stop renting and own their first home and we are so excited to help many people achieve that this year especially with the current rent prices in OC. We can help you figure out what your home is worth and how you can sell it fast and for top dollar! We truly value our time with our clients and being able to help them grow their real estate profile and accomplish their goals. If you have any questions or want to share your goals with us so we are better able to help you please fill out the form below or contact Angie at 949-338-7408!
Vow2Save – helping newlyweds afford a home!
Our First Vow2Save Bride!
Our friend, Angela, was our first bride to use Vow2Save for her wedding website and to help her crowdfund a down payment for their future home. She helped us perfect our site and we are so proud to say she has now been preapproved to buy a home with her new husband! We truly believe in our Vow2Save program and know it will help many newlyweds afford their first home and be able to purchase sooner than they thought they would. We took sometime to interview Angela about her Vow2Save experience so we could share more with you all.
Wedding Website
When you use Vow2Save you are able to customize your website and make it your own. This allows it to double as your registry site and a wedding website with all the information on your wedding and reception. When asking Angela if making her Vow2Save site (happygrahamily) was easy, she told us there are so many options for customizations and edits, but it is clear you don’t have to use every feature. She says this made it easy and simple. Having a liaison that answers any and all questions she had and that helped her edit her site, was one of the best parts. Her site was up in less than a day but she could make changes as often as she wanted or needed. She plans to have the site up for awhile after the wedding for people to reminisce.
Angela’s homepage on her Vow2Save site! Customized exactly to her wants and needs. It’s so easy to make it your own.
Crowdfunding a down payment
The main purpose behind Vow2Save is for newlyweds to be able to crowdfund their down payment instead of receive wedding gifts. Instead of the typical pizza oven or blender, brides and grooms are able to purchase a home with their wedding gifts. We use PayPal to transfer money from the Vow2Save site into your own bank account. We asked Angela how hard it was for her to get the money from the site to her bank account and she told us it was easier than tying shoes! The hardest part of the whole thing is setting up your PayPal account if you don’t already have one, which is super easy! Within 1-2 days of a donation being made you are able to transfer it from PayPal to your bank account! We also let everyone know of the transfer fee on the Vow2Save donation page so that people can choose to cover that fee on top of their donation so it doesn’t come out of their actual donation amount.
PRE-APPROVED TO BUY A HOME!
Angela and her groom Rick got married on October 13th and are already approved to buy their home thanks to Vow2Save and their family and friends donations! They were able to get preapproved because the bank saw the significant amount of money they had saved in their account for a down payment. Angela says thanks to Vow2Save and their donations they were able to get preapproved and (soon) will be able to purchase a home much quicker than they would have without it. Vow2Save helped her put a big chunk of cash into her bank account to help her with the preapproval process. Most newlyweds aren’t able to purchase a home right away and spend many years throwing away money in rent but because of Vow2Save more couples will be able to skip renting and purchase their home right away to begin their marriage just like Angela and Rick. We can’t wait to share with you when they choose the perfect home for them!
If you are engaged or know someone who is and you want this to be their reality sign up on Vow2Save! You can also fill out the form below for more information or contact Angie at 949-338-7408.
Crypto, ADU’s, & Homeownership Day 2019 – Register Here!
Want to learn more about Real Estate?
Our annual Homeownership Day & OC Home Fair is right around the corner! We are hosting at Chapman University for the 7th year in a row on January 19th, 2019 from 10 AM – 1 PM!
Orange County Young Professionals Network, Chapman University, Orange County Realtors, and local nonprofits are putting this event together for YOU. Homeownership Day is completely FREE and taught by seasoned professionals who are passionate about helping others to change their lives through homeownership and work towards building their future.
Biggity BONUS:::::::Each attendee will be entered to win $1000:::::::courtesy of Orange County Realtors.
Homeownership Day is ‘choose your own adventure style’, where you attend only the sessions you’re interested in. This year offers twelve classes over three sessions – pick from four during each time slot! When you register online at OCHomeFair.com you are able to choose which class you want to be in during each time slot. Some of the highlighted classes this year include:
- Buying Your First Home
- Taking Advantage of ADU’s and Granny Flats
- Preparing for a Market Turn – How to Protect Your Family
- Investing to be an Automatic Millionaire
- Buying with Cryptocurrency – What you Need to Know
- Reverse Mortgages
- ++++ so many other great learning opportunities that will help you get ahead.
Learn Property Down Payment Hacks from the Best
Participating Nonprofits include NeighborWorksOC and Affordable Clearinghouse – offering a panel on grants, down-payment programs, and more called ‘Finding Funds to Buy Your Home’. If you are currently renting, these nonprofits are here to help YOU! Veterans Association of Real Estate Professionals (VAREP) will also be hosting a class for veterans to take advantage of their housing benefits. Furthermore, Women in the Housing & Real Estate Ecosystem (NAWRB), will be featuring chairwoman Desiree Patno as a speaker.
Buying A Home with Bitcoin?
Featured in Forbes, Entrepreneur, & Inc Magazine, cryptocurrency transaction expert Piper Moretti will teach ‘Buying with Cryptocurrency – What You Need to Know’. As crypto becomes the mainstream, it’s important to know what to expect and how to protect yourself from cyber-fraud.
Travel much? As the world continues to shrink, Spencer Hoo is a Certified International Property Specialist (CIPS) active in Orange County Young Professionals Network (OCYPN) and Asian Real Estate Association of America (AREAA). This year Spencer is teaching our “Safely Buying and Selling International Real Estate” session.
Tired of Renting?
Orange County Realtors 2019 President Matt Clements will educate on Hassle Free Homebuying, and past Orange County Young Professionals Network chair Angie Weeks (yours truly!) will teach on David Bach’s book concepts to become “The Automatic Millionaire Homeowner”. This information is absolutely essential to anyone who wants to grow their real estate empire safely.
OC Home Fair is for Everybody. Homeownership Matters.
Whether you’re trying to buy your first home, or someone who owns multiple homes but is trying to grow your portfolio or buy internationally, our classes have real life applications to help everyone learn how to establish and grow a residual income stream. There is absolutely no pitching, anything to buy, or programs to subscribe to– just solid information presented by experienced industry leaders.
To join the next generation of real estate, and to educate yourself on all there is to know about safely building wealth with property, and for a complete colloquium list, please register online at OCHomeFair.com or simply fill out the form below:
We’ll see you at Chapman University on January 19th!
In the meantime, Let’s be InstaFriends! Follow us at @AskAngieTeam & @OCHomeFair
You can stay in touch with all of your connections you’ll inevitably make at Homeownership Day at these by following these tags on IG & Twitter.
#OCHomeFair #HomeownershipDay
Read Full Post | Make a Comment ( None so far )Vow2Save featured in South County Magazine!
Our Vow2Save program launched
We’ve been working on our Vow2Save program for years now – perfecting and enhancing its qualities. We are very excited that it is now fully functioning and helping newlyweds everywhere. On Vow2Save’s website you can set up your own wedding website with the ability to crowd fund a down payment for your first home together. We know nowadays many couples are living together before marriage or living separate in rented apartments or homes. This means most couples already have kitchen supplies and towels that most couples register for on their wedding registry. Now, instead of getting gifts that you don’t really need or already have you can register for your own home! What better way to start off your marriage than a down payment all ready for you to purchase your own home.
Vow2Save in South County mag!
We were recently mentioned in South County magazine talking about our program and what all it entails. This is really exciting for us because its one of our first public mentions with our new program! The article in South County Magazine talks about how much debt most Americans are in and how many newlyweds start their marriage off with overwhelming debt due to buying a home. Thanks to Vow2Save they can get into a home without the debt taking over. It mentions how easy it is to set up your own site with templates, infographics and how-to emails. We work with Realtors all over the country so it isn’t secluded to just Orange County! We are so excited to work with newlyweds nationwide.
We are really excited to help brides to be start their wedding website and registry with Vow2Save – so if you or anyone you know is getting married soon and wanting to buy a home please send them over to us! Email info@vow2save.com or fill out the form below for more information!
Read Full Post | Make a Comment ( None so far )
ADUs making you profit in OC
Accessory Dwelling Units (ADUs)
Anyone else notice how California keeps getting more crowded and more expensive? It is just too beautiful to leave so ADUs are great ways for adding much needed space here. They can be known as in-law suites, secondary units, guest house and more. These are more affordable for California residents because they don’t require purchasing more land or structured parking. Adding a living space above your garage, a basement apartment, or a tiny home in the backyard are great ways to add extra living space to your home. They also have the opportunity for homeowners to make a profit by adding space. Legally adding these spaces onto your home makes it the same property as the main house. They can not be bought or sold separately. The placement of the ADU may be based on criteria such as adequacy of water and sewer services and the impact of traffic flow and public safety. Some of the restrictions that may come up are parking, height, setback, lot coverage, landscape, and maximum size of that unit. Also if any of the homes are listed in the California Register of Historic Places that can change what you are allowed to do when it comes to adding and ADU.
How to make a profit with your ADU
Did you know the average rent in Orange County is currently $2,500 a month? What would having that amount of money extra in your pocket do for your budget? New law changes as of January 1st, 2018 allowed for home owners to turn their single family residence into a duplex or multi family home in order to rent out one half to make a profit and provide more housing for California residents. The unit can only be rented, and not sold. This is such a great way for homeowners to make some money. Adding on to your home or remodeling to make a separate living space may sound like a hefty project with time and money, but with the rent prices increasing in OC all the time, we think it would be very worth it.
Real Life Scenarios
We spoke to a San Juan Capistrano retiree who decided to do just this in order to make some extra money while being retired. She bought a pre-fabbed ADU for around $60,000 and is renting it for around $2,500 a month. By doing this it will be paid off in around 3 years so she will be pocketing all of that rent money every month. What a perfect way for a retired person to make some extra vacation money or start saving for grandkids to go to college!
If you want more information on how you can add an ADU to your property and what you could rent it for, fill out the form below.
Owning vs Renting in OC
Are you struggling with the increase in rent here in OC?
Most people are having a hard time staying in one place with the increase in rent for current residents every year. The Orange County Register posted that Orange County rent is up $73 a month or 3.8 percent year over year in May of 2018. There is no rent control to help current residents stay closer to their going rate after living there year after year. We have been renters before and understand the struggle of paying so much every month for something that isn’t actually yours. In reality you could be paying around the same amount every month to own a home. Believe us, it feels a lot better to make that payment every month knowing that you own your home. It doesn’t look like the price of rent is going to decrease anytime here in Orange County so now is the time to get yourself your own home.
Benefits of Homeownership
There are so many more benefits to homeownership other than just having something of your own. Most people don’t realize how affordable owning a home really is, down payment options are as low as 3.5% currently. We often think about how expensive it is to own our home, but do we ever consider how expensive it is not too? Throwing all that money away on rent every month adds up to such a high price on something you don’t even get to keep. While owning a home you are building equity which helps you have a better plan for your future. You also save on your taxes if you’re a homeowner so really, owning a home makes you some money every year in equity and tax savings. You are no longer tied to a landlord who can raise your rent or change things on you at the end of any lease and your family has a stable home to live and grow in. However, we think the best part of homeownership is the pride you feel knowing you worked hard for something that is all your own.
Rent vs Own Analysis
To help you more visualize why owning is more beneficial than renting we created a rent vs owning analysis based on a rent of $2500 a month or buying our current home on the market 16555 Sell Circle . Let’s say you had a down payment of around $10,000 and got a loan for $515,000 for the rest of the payment, with a 4.875 interest rate. You pay HOA fees of $360 a month, but you also get a tax benefit from owning a home. This is the amount you’d be SAVING to own instead of renting! Many people think they can’t afford their own home, but they definitely can! We would love to help you put together one of these for your own situation to help you see the difference in your life if you were to buy a home!
If you are interested in seeing your rent vs own analysis or if you’re ready to find your home contact Angie at 949-338-7408!
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