I saw this article today in the San Jose Mercury News indicating that 1/5 of all the Bay Area foreclosures were investor owned. Very interesting. Here is the text of the article:
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SAN FRANCISCO—More than one-fifth of the San Francisco Bay area properties that fell into foreclosure this year belonged to real estate investors instead of overextended homeowners, according to a newspaper report.
The San Francisco Chronicle also reported Sunday that one in six of the properties repossessed through September had been owned by people with two or more foreclosures in their names.
Experts say the region's frenzied real estate market and the availability of subprime loans enticed novice and experienced speculators to snatch up properties with hopes of flipping them into a quick return.
The newspaper's analysis of more than 65-hundred repossessed homes and condominiums found both naive investors and perpetuators of fraud among those facing multiple foreclosures. Nearly 70 percent of the investor-owned housing was purchased without a down payment.
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What does this mean? It indicates that although there are a lot of homeowners who are currently strapped and are having a hard time making mortgage payments, a significant amount of the foreclosures are for over-extended investors.
www.lisacartolano.com
Wednesday, December 19, 2007
Friday, December 7, 2007
Forclosure Relief Plan Unvieled by President Bush
President Bush has announced a plan to offer foreclosure relief to 1.2 million homeowners.
According to the details outlined in an article today in Rismedia, this plan includes a freeze on low, introductory mortgage interest rates that could increase significantly over the next few years.
The plan has a limited scope though. Only those who are current with their mortgage payments are eligible. It also only covers those adjustable rate mortgages with rates that are set to reset in 2008 and leaves out any who are deemed capable to continuing to make the higher payments and the new higher rate.
According to the Rismedia article some industry experts calling it “a step in the right direction.” This plan includes an agreement with the Bush administration and mortgage industry with the mortgage industry administering the rate freeze and the investors who purchased the loan. The agreement also sets conditions under which rates on certain loans could be temporarily frozen. It isn’t binding, but because it has the support of major investors, it is expected to give loan servicers much more flexibility to quickly rework some loans and direct other borrowers toward refinancing, reports said.
This plan only applies to originated between Jan. 1, 2005, and July 31, 2007, that reset between Jan. 1, 2008, and July 31, 2010.
This aid is only available to those who ask. There is a hotline you can call: 1-888-995-HOPE.
In the Rismedia article Andrew Jakabovics, associate director ofor the Economic Mobility Program, released a statement saying, “It has taken a while, but even the Bush administration, long in denial about the broad negative effects the mortgage crisis is having on individual borrowers, entire neighborhoods, and the national economy, has come around to recognizing that there is a necessary and appropriate role for government in solving the problem. As with other serious crises that have happened on Bush’s watch, the solution is to make it the next administration’s problem.”
He continued, “The five-year freeze is a welcome opportunity for the subset (no more than 30 percent) of borrowers put into suspended animation. But it also fails to address the needs of the people whose rates have already reset or the growing number of borrowers who are creditworthy but have negative equity in their homes as a result of widespread foreclosures and who have no way to get out of their challenging loans. It also does nothing to restore faith in the smooth operation of our financial system, when breakdowns in the credit market can accelerate the economic downturn or contribute to a recession. The administration can and should do more.”
There has been criticism of the Bush administration for not addressing the mortgage crisis in a more timely manner. Bush is now encouraging Congress to pass mortgage relief legislation. Bush is also careful to note that this is not a government bail out with no federal funds being used for the program.
According to the details outlined in an article today in Rismedia, this plan includes a freeze on low, introductory mortgage interest rates that could increase significantly over the next few years.
The plan has a limited scope though. Only those who are current with their mortgage payments are eligible. It also only covers those adjustable rate mortgages with rates that are set to reset in 2008 and leaves out any who are deemed capable to continuing to make the higher payments and the new higher rate.
According to the Rismedia article some industry experts calling it “a step in the right direction.” This plan includes an agreement with the Bush administration and mortgage industry with the mortgage industry administering the rate freeze and the investors who purchased the loan. The agreement also sets conditions under which rates on certain loans could be temporarily frozen. It isn’t binding, but because it has the support of major investors, it is expected to give loan servicers much more flexibility to quickly rework some loans and direct other borrowers toward refinancing, reports said.
This plan only applies to originated between Jan. 1, 2005, and July 31, 2007, that reset between Jan. 1, 2008, and July 31, 2010.
This aid is only available to those who ask. There is a hotline you can call: 1-888-995-HOPE.
In the Rismedia article Andrew Jakabovics, associate director ofor the Economic Mobility Program, released a statement saying, “It has taken a while, but even the Bush administration, long in denial about the broad negative effects the mortgage crisis is having on individual borrowers, entire neighborhoods, and the national economy, has come around to recognizing that there is a necessary and appropriate role for government in solving the problem. As with other serious crises that have happened on Bush’s watch, the solution is to make it the next administration’s problem.”
He continued, “The five-year freeze is a welcome opportunity for the subset (no more than 30 percent) of borrowers put into suspended animation. But it also fails to address the needs of the people whose rates have already reset or the growing number of borrowers who are creditworthy but have negative equity in their homes as a result of widespread foreclosures and who have no way to get out of their challenging loans. It also does nothing to restore faith in the smooth operation of our financial system, when breakdowns in the credit market can accelerate the economic downturn or contribute to a recession. The administration can and should do more.”
There has been criticism of the Bush administration for not addressing the mortgage crisis in a more timely manner. Bush is now encouraging Congress to pass mortgage relief legislation. Bush is also careful to note that this is not a government bail out with no federal funds being used for the program.
Tuesday, December 4, 2007
Monday, November 26, 2007
Wildfires Still In the News
Unfortunately Southern California is still threatened by wildfires. Below is an article from the California Association of Realtors (www.car.org), that links to various articles regarding the current situation in Southern California.
Southern California remains on high alert as the threat of new wildfires competes with the on-going efforts to help those struggling to rebuild after wildfires destroyed their homes and businesses more than a month ago.
A round-up of news articles on the status of all of the Southern California wildfires, legislative efforts to aid the recovery process, and other information is posted daily on the REALTORS® Care pages of C.A.R. online. For more information, go directly to this link on the car website that will forward you to a roll up of different articles related to the wildfires in Southern California CAR Wildfires .
Southern California remains on high alert as the threat of new wildfires competes with the on-going efforts to help those struggling to rebuild after wildfires destroyed their homes and businesses more than a month ago.
A round-up of news articles on the status of all of the Southern California wildfires, legislative efforts to aid the recovery process, and other information is posted daily on the REALTORS® Care pages of C.A.R. online. For more information, go directly to this link on the car website that will forward you to a roll up of different articles related to the wildfires in Southern California CAR Wildfires .
Tuesday, November 13, 2007
Propositions 60, 90 and 110
Propositions 60, 90 and 110 relate to those persons 55 and older or severely and permanently disabled.
Proposition 60 was approved by voters in November 1986 allows under certain circumstances the transfer of the property tax base from a primary residence to a replacement dwelling in the same county.
Proposition 90 approved in November 1988 permits the Legislature to authorize each county's board of supervisors to adopt an ordinance which extends Proposition 60 benefits to qualified homeowners outside the county.
Proposition 110 approved by voters in June 1990, extends the proposition 60 benefits to severally and permanently disabled individuals.
An example of this would be a person age 55 is living in a home in LA. The person moves to Berkeley and purchases a home in Berkeley that will be the primary residence. The individual in this case could transfer the property tax base from the house in LA to the house in Berkeley.
There are some restrictions and guidelines that must be met.
1. This is a one time event. Once you transfer your tax base once, you cannot transfer it again.
2. You must apply to have transfer tax base moved from one house to the next.
3. The replacement property must be purchased or newly constructed within 2 years before or after the sale of the original residence.
4. The transfer of the original residence must be a change in ownership which subjects the property to reappraisal at its current market value.
5. The replacement property must be of greater or equal value.
For more details and questions and answers regarding Proposition 60, 90 and 110 you can visit this site http://www.boe.ca.gov/proptaxes/faqs/reappraisal.htm
www.LisaCartolano.com
Proposition 60 was approved by voters in November 1986 allows under certain circumstances the transfer of the property tax base from a primary residence to a replacement dwelling in the same county.
Proposition 90 approved in November 1988 permits the Legislature to authorize each county's board of supervisors to adopt an ordinance which extends Proposition 60 benefits to qualified homeowners outside the county.
Proposition 110 approved by voters in June 1990, extends the proposition 60 benefits to severally and permanently disabled individuals.
An example of this would be a person age 55 is living in a home in LA. The person moves to Berkeley and purchases a home in Berkeley that will be the primary residence. The individual in this case could transfer the property tax base from the house in LA to the house in Berkeley.
There are some restrictions and guidelines that must be met.
1. This is a one time event. Once you transfer your tax base once, you cannot transfer it again.
2. You must apply to have transfer tax base moved from one house to the next.
3. The replacement property must be purchased or newly constructed within 2 years before or after the sale of the original residence.
4. The transfer of the original residence must be a change in ownership which subjects the property to reappraisal at its current market value.
5. The replacement property must be of greater or equal value.
For more details and questions and answers regarding Proposition 60, 90 and 110 you can visit this site http://www.boe.ca.gov/proptaxes/faqs/reappraisal.htm
www.LisaCartolano.com
Thursday, November 8, 2007
Cancellation of Mortgage Debt - Questions and Answers
There have been a lot of question regarding the Cancellation of Mortgage Debt Relief Bill and the Realtor.org has outlined some of the questions and answers in a recent article The full article can be viewed at http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation_qna?OpenDocument
Here is a short synopsis of the article. To view the entire article click on the link above.
Has this law been passed?
No. The House of Representatives has passed a bill, but it needs the Senate's approval, and then the signature of the president.
Current Law: The cancellation of mortgage debt rules apply only to a limited number of taxpayers. The provision is best understood with an example.
Assume you purchased a home for $650,000 with a mortgage of $600,000. Now you need to sell the home, and values in the area have declined and you can sell for only $550,000.
At the time of the sale, the outstanding balance on a mortgage might be, for example, $569,000. In this scenario there will not be enough cash closing to repay the lender the full balance of the mortgage. In some limited circumstances, a lender might forgive the amount of the balance that exceeds the purchase price ($19,000 in this example).
What happens to the seller when a portion of mortgage debt is forgiven? Under current law, the amount of forgiven mortgage debt (the $19,000 in this example), is treated as income, and taxed at ordinary income rates. Thus, the seller, who has experienced a true economic loss, is required to pay tax on this phantom income, even though no cash has changed hands and even though he has experienced a loss.
What about a refinanced mortgage? As currently drafted the provision would apply to either an original or refinanced mortgage.
The provision would also apply to commercial real estate as well.
Why is the law being considered?
Historically real estate has appreciated in value. But as need in some markets recently values have declined. This may be due to an major employer leaving and area or a homeowner needs to sell in a down market due job relocation. It seems particularly unfair to tax phantom income at a time when a taxpayer is in reduced economic circumstances.
There are a lot of mixed feelings out there regarding this potential law. Some will say that the homeowners should have been more prudent when purchasing their home and not overspent. At the same time no could predict the timing for the change in the Real Estate market. What seemed like a great deal a couple of years ago might not look that way right now. This is obviously can be an emotional process for the homeowner if they are facing this situation and potentially a huge financial impact to the lenders who forgive the loans.
There is sure to be a lot of debate over this issue to come in the months to come. It will be interesting to see how the Senate and President react.
Here is a short synopsis of the article. To view the entire article click on the link above.
Has this law been passed?
No. The House of Representatives has passed a bill, but it needs the Senate's approval, and then the signature of the president.
Current Law: The cancellation of mortgage debt rules apply only to a limited number of taxpayers. The provision is best understood with an example.
Assume you purchased a home for $650,000 with a mortgage of $600,000. Now you need to sell the home, and values in the area have declined and you can sell for only $550,000.
At the time of the sale, the outstanding balance on a mortgage might be, for example, $569,000. In this scenario there will not be enough cash closing to repay the lender the full balance of the mortgage. In some limited circumstances, a lender might forgive the amount of the balance that exceeds the purchase price ($19,000 in this example).
What happens to the seller when a portion of mortgage debt is forgiven? Under current law, the amount of forgiven mortgage debt (the $19,000 in this example), is treated as income, and taxed at ordinary income rates. Thus, the seller, who has experienced a true economic loss, is required to pay tax on this phantom income, even though no cash has changed hands and even though he has experienced a loss.
What about a refinanced mortgage? As currently drafted the provision would apply to either an original or refinanced mortgage.
The provision would also apply to commercial real estate as well.
Why is the law being considered?
Historically real estate has appreciated in value. But as need in some markets recently values have declined. This may be due to an major employer leaving and area or a homeowner needs to sell in a down market due job relocation. It seems particularly unfair to tax phantom income at a time when a taxpayer is in reduced economic circumstances.
There are a lot of mixed feelings out there regarding this potential law. Some will say that the homeowners should have been more prudent when purchasing their home and not overspent. At the same time no could predict the timing for the change in the Real Estate market. What seemed like a great deal a couple of years ago might not look that way right now. This is obviously can be an emotional process for the homeowner if they are facing this situation and potentially a huge financial impact to the lenders who forgive the loans.
There is sure to be a lot of debate over this issue to come in the months to come. It will be interesting to see how the Senate and President react.
Tuesday, November 6, 2007
Mortgage Crisis Not For Everyone
I belong to Costco and I was recently flipping through the magazine they send to members, Costco Connection, and ran into an article Mortgage Crisis Not For Everyone.
Of course Costco was trying to sell their services, but they pointed some good reminders.
Mortgage companies are going to continue the shakeout in 2008 that has been observed this year. Despite all of this interest rates are still historically low and there are still competitive mortgages out there to be found.
Of course with the recent changes, there are modifications to the the criteria a buyer must meet to obtain a loan. Gone are the days of the stated income, 100% financing with less than perfect credit.
If you are a borrower with decent credit and some money to put down you are in a great position.
Do Your Homework!
Before looking for a mortgage or to re-finance look at your current situation
Check Your Credit
It is a great time to buy. Being educated is the first step.
Of course Costco was trying to sell their services, but they pointed some good reminders.
Mortgage companies are going to continue the shakeout in 2008 that has been observed this year. Despite all of this interest rates are still historically low and there are still competitive mortgages out there to be found.
Of course with the recent changes, there are modifications to the the criteria a buyer must meet to obtain a loan. Gone are the days of the stated income, 100% financing with less than perfect credit.
If you are a borrower with decent credit and some money to put down you are in a great position.
Do Your Homework!
Before looking for a mortgage or to re-finance look at your current situation
Check Your Credit
- Take a look at your credit report to make sure there are not any erroneous dings on your credit. By dealing with these issues before you are looking to buy or re-fiance you could potentially increase your credit score and could expand the mortgage options available to you.
- Saving for a down payment will tremendously help find you the best loan possible. There are programs out there that do allow for 100% financing but if you have a decent down payment you will have more options
- This is tremendously important. You really want to sit down with a reputable loan person who can help you understand the different loan options, the monthly cost of a mortgage, the added expenses of taxes and insurance.
It is a great time to buy. Being educated is the first step.
Monday, November 5, 2007
Banks Follow The Fed
In response to the Federal Reserve lower interest rates, Banks are following suite. Institutions including Bank of America, Wells Fargo, and KeyCorp., announced that they were cutting their prime lending rate — for certain credit cards, home equity lines of credit, and other loans — by a corresponding amount, to 7.5 percent.
This also will bring down rates for first mortgages and re-finanance loans.
The Fed indicated they believe that this most recent interest rate cut along with the one in September will be enough to balance the risk of inflation. What this seems to indicate is that the Fed will leave interest rates alone when they next meet on December 11th.
This also will bring down rates for first mortgages and re-finanance loans.
The Fed indicated they believe that this most recent interest rate cut along with the one in September will be enough to balance the risk of inflation. What this seems to indicate is that the Fed will leave interest rates alone when they next meet on December 11th.
Thursday, November 1, 2007
Fed Lowers Rates
The Federal Reserve lowered rates by .25%
The intention is to promote moderate growth and try to get us back on track after the most recent mortgage "crisis."
The tone of the Fed's meeting led many to believe a future rate cut is not a guarantee. For now, the concensus is the Fed will not cut rates again at their next meeting in December.....further speculation on this will continue with the results of economic data reported between now and then.
For now, this rate cut will immediately affect the prime index which will go down to 7.5% (we were as high as 8.25% a few months ago). First mortgages may dip slightly as well, but it may take a day or so for us to see those results.
Saturday, October 27, 2007
In Berkeley Does A Condo Conversion Make Sense?
Recently I was asked about condo conversions in Berkeley, CA and here is some information that may prove to be helpful.
The question that was posed to me is if a friend and I purchase a duplex together can we convert it to condos so we can have single ownership of our half?
In Berkeley there is a Condo Conversion Ordinance (CCO) that limits the number of condo conversions because by changing the nature of the real estate commodity to a separately owned condo it removes available rental units in the marketplace.
The City regulates condo conversion in Berkeley by:
Subdivision of rental housing is subject to specific conditions.
Controlling the rate at which the number of new condominium units may enter the housing market. The CCO presently limits conversion of rental housing to condominiums to 100 new units per year.
Requiring payment of an affordable housing mitigation fee at the time of initial sale for each newly converted unit, which accrues to the City of Berkeley Housing Trust Fund, a program administered by the Housing Department. this fund is used to invest in the creation of permanently affordable housing units in Berkeley.
Requiring owners wishing to convert rental units to provide sitting tenants with a right of first refusal to purchase their units.
Requiring subdivision map conditions that address seismic safety, overall local law compliance, and tenant notification of their right of first refusal to purchase their unit.
Providing significant protections and incentives to sitting tenants to remain in their units long-term.
Application for condo conversions are reviewed only twice a year, so depending on when you are looking to purchase a property, you may have to wait up to 6 months before you can even submit your application for condo conversion.
The process for condo conversion in Berkeley can be a complicated and lengthy process, so you will really need to sit down and evaluate if this is the best option for you. For all the details for applying for a condo conversion and all the requirements that must be met, you can visit Berkeley's Planning and Development site at Condominium Conversions in the City of Berkeley.
In this particular instance where two parties are looking to purchase a duplex together a Tenancy In Common (TIC) ownership may to a viable alternative to the condo conversion.
Any questions? You can contact me at Lisa@LisaCartolano.com or at 510.213.1139
Check me out on the web at www.LisaCartolano.com
Sunday, October 21, 2007
Mortgage Cancellation Relief
For homeowners finding themselves in a situation where they must sell their house for less than they owe, there is some good news.
On October 4, 2007 - The House has agreed to legislation that would provide tax relief when lenders forgive some portion of a mortgage debt. The vote was 386 - 27. Under current law, forgiven mortgage debt is treated as taxable income and taxed at ordinary income rates. The legislation would provide a permanent rule that eliminates the requirement to pay tax on forgiven mortgage debt on a principal residence, up to $2 million. There is no income restriction on those who are eligible for the relief. The revenue estimate for the provision is $1.4 Billion over 10 years. A "pay-for" has been identified that will tighten, but not eliminate, a benefit of current law.
Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
On October 4, 2007 - The House has agreed to legislation that would provide tax relief when lenders forgive some portion of a mortgage debt. The vote was 386 - 27. Under current law, forgiven mortgage debt is treated as taxable income and taxed at ordinary income rates. The legislation would provide a permanent rule that eliminates the requirement to pay tax on forgiven mortgage debt on a principal residence, up to $2 million. There is no income restriction on those who are eligible for the relief. The revenue estimate for the provision is $1.4 Billion over 10 years. A "pay-for" has been identified that will tighten, but not eliminate, a benefit of current law.
Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
How Accurate is Zillow?
Zillow has become a popular site for seller and buyers to take a look at the value of a home. But how accurate is it?
A recent article in the Wall Street Journal had some interesting information regarding Zillow's accuracy:
The Wall Street Journal analysis of 1,000 homes on Zillow found that the "Zestimates" are often good, usually within a few percentage points to the actual price. But when Zillow is bad, it is really bad. Zestimates were off by 25% in 1 and 10 homes and in one case Zillow was off the mark by 2 million.
According to the Wall Street Journel, Zillow executives acknowledge that estimates can be way off in some cases. These estimates are a good "starting point" for people trying to figure out how much a home should cost. Amy Bohutinsky, a spokeswoman for the company states "We don't recommend it as the final word."
Zillow can be quite accurate in some markets but estimates are sometimes hit or miss. Zillow tends to work best for mid range homes in areas where there are a lot of comparable homes. It tends to be less accurate for low and high end homes were there is less data available from comparable sales.
Part of the problem with Zestimates is the data fed to Zillow does not take into account if the house has been remodeled, or if it is a foreclosure or a fixer. Reported prices sometimes are misleading as well because there are instances where family members who sell between themselves will often sell for a token price.
So if you are looking to buy or sell a home,Zillow can be a great place to begin the search to determine the ballpark range of homes in the area, but it is also a good idea to get more in depth data that takes into account variances that can affect the overall value of a home.
Any questions? Want a copy of the Wall Street Journal Article emailed to you? You can contact me at lcartolano@apr.com or at 510.213.1139
A recent article in the Wall Street Journal had some interesting information regarding Zillow's accuracy:
The Wall Street Journal analysis of 1,000 homes on Zillow found that the "Zestimates" are often good, usually within a few percentage points to the actual price. But when Zillow is bad, it is really bad. Zestimates were off by 25% in 1 and 10 homes and in one case Zillow was off the mark by 2 million.
According to the Wall Street Journel, Zillow executives acknowledge that estimates can be way off in some cases. These estimates are a good "starting point" for people trying to figure out how much a home should cost. Amy Bohutinsky, a spokeswoman for the company states "We don't recommend it as the final word."
Zillow can be quite accurate in some markets but estimates are sometimes hit or miss. Zillow tends to work best for mid range homes in areas where there are a lot of comparable homes. It tends to be less accurate for low and high end homes were there is less data available from comparable sales.
Part of the problem with Zestimates is the data fed to Zillow does not take into account if the house has been remodeled, or if it is a foreclosure or a fixer. Reported prices sometimes are misleading as well because there are instances where family members who sell between themselves will often sell for a token price.
So if you are looking to buy or sell a home,Zillow can be a great place to begin the search to determine the ballpark range of homes in the area, but it is also a good idea to get more in depth data that takes into account variances that can affect the overall value of a home.
Any questions? Want a copy of the Wall Street Journal Article emailed to you? You can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, October 16, 2007
Re-Thinking The Buying Process
Most home buyers claim they're picky. And why not? You are buying a home. It not only provides a roof but also needs to satisfy emotional needs that aren't easily quantifiable.
Since the home-buying experience is also often an emotional pursuit as well, there is a psychological component to consider. For example, let's say you have been searching for the right home for months, maybe even coming up on years. There haven't been many properties that fit your ideal and you have maybe made one offer during that time frame and the house you really loved turned out to be more expensive than you can really afford.
You've come close to making an offer several times, but have backed away after reconsidering. Each property had defects in terms of your ideal wish list. You weren't willing to compromise.
Buyers who find they've been looking for the right house for more than six months should pause to consider whether their expectations are in line with reality. For example you want a turn of the century home, with all updated systems in a desirable neighborhood, but all the homes you have seen are way out of your price range. Home buying involves making compromises if you're serious about buying.
In order to decide how you will compromise, you need to research what is available to find out what is realistically possible. Do your homework. The perfect house won't just magically appear. To save time, use the Internet to whittle down the list of homes for sale until you find the ones that suit your needs. Then make a point of visiting these in person, either with a real estate agent or at an open house.
Buyers with pressing needs usually have less of a problem finding the right home to buy. Say you have children who are about to enter school and you want to live in a particular school district. As long as the home has the right number of bedrooms, baths an has a yard you will be willing to give up the old world charm that you would like to have to find what you and your family need.
You may be getting out and seeing the listings that might work for you and still aren't having success. You get close to making and offer but never carry through. You find your self not being able to make a decision even when you see the right house to buy.
Buying a home is a big commitment and it can be scary. You often times are spending a large sum of money and maybe to a lifestyle that you are not accustomed to. It can really help to talk with advisers when you find that you're getting nowhere. Talk to a trusted financial advisor to see if you're looking in the right price range. You may find scaling back on the purchase price helps. Talk to friends and family who have purchased a home to find out how they made their decision to buy a home and how has it affected them both financially and in terms of lifestyle changes.
After doing your homework you may want to reconsider your wish list based on what you have learned about your local market and what to expect. By realigning your your expectations and even readjusting your price range, you may find that the buying a home is within your reach.
Since the home-buying experience is also often an emotional pursuit as well, there is a psychological component to consider. For example, let's say you have been searching for the right home for months, maybe even coming up on years. There haven't been many properties that fit your ideal and you have maybe made one offer during that time frame and the house you really loved turned out to be more expensive than you can really afford.
You've come close to making an offer several times, but have backed away after reconsidering. Each property had defects in terms of your ideal wish list. You weren't willing to compromise.
Buyers who find they've been looking for the right house for more than six months should pause to consider whether their expectations are in line with reality. For example you want a turn of the century home, with all updated systems in a desirable neighborhood, but all the homes you have seen are way out of your price range. Home buying involves making compromises if you're serious about buying.
In order to decide how you will compromise, you need to research what is available to find out what is realistically possible. Do your homework. The perfect house won't just magically appear. To save time, use the Internet to whittle down the list of homes for sale until you find the ones that suit your needs. Then make a point of visiting these in person, either with a real estate agent or at an open house.
Buyers with pressing needs usually have less of a problem finding the right home to buy. Say you have children who are about to enter school and you want to live in a particular school district. As long as the home has the right number of bedrooms, baths an has a yard you will be willing to give up the old world charm that you would like to have to find what you and your family need.
You may be getting out and seeing the listings that might work for you and still aren't having success. You get close to making and offer but never carry through. You find your self not being able to make a decision even when you see the right house to buy.
Buying a home is a big commitment and it can be scary. You often times are spending a large sum of money and maybe to a lifestyle that you are not accustomed to. It can really help to talk with advisers when you find that you're getting nowhere. Talk to a trusted financial advisor to see if you're looking in the right price range. You may find scaling back on the purchase price helps. Talk to friends and family who have purchased a home to find out how they made their decision to buy a home and how has it affected them both financially and in terms of lifestyle changes.
After doing your homework you may want to reconsider your wish list based on what you have learned about your local market and what to expect. By realigning your your expectations and even readjusting your price range, you may find that the buying a home is within your reach.
Wednesday, October 10, 2007
Refacing Those Cabinets May Be As Easy As Painting
Your kitchen cabinets are looking a little, well, dingy and you don't really want to spring for new cabinets. What to do? Paint and hardware. These two things can make a huge difference. If any of you out there are an HGTV junkie like myself you will have seen this trick a thousand times.
With the proper materials, some time and some patience, you can make quite a difference in a fairly short time.
GETTING READY
Any successful paint job begins with proper preparation, and nowhere is this more true than when painting kitchen cabinets. Take your time here, and the rest of the job will go much smoother.
First, you need to decide exactly what you want to paint. Some older kitchens have cabinets that are painted both inside and out, and that may be what you wangt to do again. You may wish to paint only the outside of the cabinets and leave the insides alone, or you may be planning on replacing the doors and drawer fronts, and only need to paint the cabinet-face frames and side panels.
Although it represents a little more work up front, the job will much easier if you plan on completely emptying the cabinets. Box up what you won't need for the next several days, and what you will need can be set up on a temporary work space in another room. Remove all of the doors, hinges and knobs, and store the hardware in zipper-lock bags so nothing gets lost.
Next, all of the surfaces that will be painted need to be cleaned and prepped to receive the new paint. Cabinets, no matter how good a housekeeper you are, kitchen cabinets are abused on a daily baisis and are going to have a coating of grease on them, and that needs to be completely removed for the paint to stick well. Wash the cabinets inside and out with a solution of trisodium phosphate (TSP) and hot water. TSP is a great general cleaner and degreaser -- follow the mixing, usage and safety instructions on the package.
After cleaning, you need to lightly roughen the surface of the wood so that the new paint will adhere better. You may want to cover appliances with plastic at this point to avoid a layer of dust on them. Using 220-grit wet and dry sandpaper, moisten the paper with water and lightly sand in the direction of the grain. Wipe everything down with a clean soft rag to remove most of the surface dust, followed by a final wiping with a tack cloth. Tack clothes are simply rags that have been treated to make them slightly sticky, and they do a great job of removing the final traces of sanding dust without leaving any residue on the cabinets.
If you are painting the doors and drawer fronts, remember to clean and sand them as well. You may want to find a convenient spot in the garage to set them up for painting, or you can set them up in the kitchen as well. They are, however, easier to paint if they are not still on the cabinets.
You are now ready to start painting. Begin by recovering everything with plastic, paying close attention to protecting counters, appliances, floors, walls and other surfaces that will not be painted. If you are not painting the insides of the cabinets, use masking tape to create a clean line between the cabinet face frames and the interior. Mask where the cabinets meet the wall, using blue (lighter tack) masking tape to prevent damage to the wall surfaces when it's removed.
For best adhesion and best finished appearance, you should consider applying a primer coat before applying the finished color. Primers are designed to create an intermediate bond between the wood and the finished paint, and are a step well worth taking. Your paint store can help you select the proper primer for the type of finish paint you'll be using. Primers are typically white, so if the final color you intend to apply is dark, the paint store can also tint the primer to a color that's closer to the final paint color.
You now have to decide between applying the paint with a brush or with a sprayer. Brush painting is more convenient and requires a lot less masking, but spraying is faster and tends to apply the paint more evenly without having to worry about brush streaks. Your paint store can help you out with the proper type of brush for the paint you're using, and if you decide to spray, they can either rent you the proper spray equipment or direct you to someone who can.
Apply the primer coat, allow it to dry completely, then apply the top coat. Follow all of the manufacturer's instructions for application, drying, ventilation and other precautions. Allow the top coat to dry completely, remove the masking, then clean and add your new hardward and hindges.
All of the materials you need, along with expert advice, can be found at any well-equipped paint store. If you already know exactly what you need to buy, you can also visit your local home center.
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
With the proper materials, some time and some patience, you can make quite a difference in a fairly short time.
GETTING READY
Any successful paint job begins with proper preparation, and nowhere is this more true than when painting kitchen cabinets. Take your time here, and the rest of the job will go much smoother.
First, you need to decide exactly what you want to paint. Some older kitchens have cabinets that are painted both inside and out, and that may be what you wangt to do again. You may wish to paint only the outside of the cabinets and leave the insides alone, or you may be planning on replacing the doors and drawer fronts, and only need to paint the cabinet-face frames and side panels.
Although it represents a little more work up front, the job will much easier if you plan on completely emptying the cabinets. Box up what you won't need for the next several days, and what you will need can be set up on a temporary work space in another room. Remove all of the doors, hinges and knobs, and store the hardware in zipper-lock bags so nothing gets lost.
Next, all of the surfaces that will be painted need to be cleaned and prepped to receive the new paint. Cabinets, no matter how good a housekeeper you are, kitchen cabinets are abused on a daily baisis and are going to have a coating of grease on them, and that needs to be completely removed for the paint to stick well. Wash the cabinets inside and out with a solution of trisodium phosphate (TSP) and hot water. TSP is a great general cleaner and degreaser -- follow the mixing, usage and safety instructions on the package.
After cleaning, you need to lightly roughen the surface of the wood so that the new paint will adhere better. You may want to cover appliances with plastic at this point to avoid a layer of dust on them. Using 220-grit wet and dry sandpaper, moisten the paper with water and lightly sand in the direction of the grain. Wipe everything down with a clean soft rag to remove most of the surface dust, followed by a final wiping with a tack cloth. Tack clothes are simply rags that have been treated to make them slightly sticky, and they do a great job of removing the final traces of sanding dust without leaving any residue on the cabinets.
If you are painting the doors and drawer fronts, remember to clean and sand them as well. You may want to find a convenient spot in the garage to set them up for painting, or you can set them up in the kitchen as well. They are, however, easier to paint if they are not still on the cabinets.
You are now ready to start painting. Begin by recovering everything with plastic, paying close attention to protecting counters, appliances, floors, walls and other surfaces that will not be painted. If you are not painting the insides of the cabinets, use masking tape to create a clean line between the cabinet face frames and the interior. Mask where the cabinets meet the wall, using blue (lighter tack) masking tape to prevent damage to the wall surfaces when it's removed.
For best adhesion and best finished appearance, you should consider applying a primer coat before applying the finished color. Primers are designed to create an intermediate bond between the wood and the finished paint, and are a step well worth taking. Your paint store can help you select the proper primer for the type of finish paint you'll be using. Primers are typically white, so if the final color you intend to apply is dark, the paint store can also tint the primer to a color that's closer to the final paint color.
You now have to decide between applying the paint with a brush or with a sprayer. Brush painting is more convenient and requires a lot less masking, but spraying is faster and tends to apply the paint more evenly without having to worry about brush streaks. Your paint store can help you out with the proper type of brush for the paint you're using, and if you decide to spray, they can either rent you the proper spray equipment or direct you to someone who can.
Apply the primer coat, allow it to dry completely, then apply the top coat. Follow all of the manufacturer's instructions for application, drying, ventilation and other precautions. Allow the top coat to dry completely, remove the masking, then clean and add your new hardward and hindges.
All of the materials you need, along with expert advice, can be found at any well-equipped paint store. If you already know exactly what you need to buy, you can also visit your local home center.
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, October 9, 2007
Measure EE Rent Control Ordinance In Oakland
In 2002 voters of Oakland passed Measure EE- The Just Cause Eviction Law.
What does this law mean and how can if affect you?
Measure EE specifies when eviction may occur. Except in dwellings built since 1980, the owner cannot evict rent-paying tenants who abide by rental agreements unless the owner occupies at least a third of the building or intends to move into the unit or move family into the unit. The measure also states that landlords must abide by lease agreements unless tenants fail to pay rent, damage property or breach some other portion of a rental agreement.
If you are looking to purchase an investment property with rental units, or you decide to rent our your current home, you should make sure you are aware of these laws.
Also if you are considering selling your rental property be aware that these laws still pertain to you. As you might imagine selling an occupied unit can be a bit more complicated than if it is vacant. But be aware, you cannot evict tenants to sell the property.
The City of Oakland provides an outline for landlords at http://www.oaklandnet.com/government/hcd/rentboard/landlord.html
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
What does this law mean and how can if affect you?
Measure EE specifies when eviction may occur. Except in dwellings built since 1980, the owner cannot evict rent-paying tenants who abide by rental agreements unless the owner occupies at least a third of the building or intends to move into the unit or move family into the unit. The measure also states that landlords must abide by lease agreements unless tenants fail to pay rent, damage property or breach some other portion of a rental agreement.
If you are looking to purchase an investment property with rental units, or you decide to rent our your current home, you should make sure you are aware of these laws.
Also if you are considering selling your rental property be aware that these laws still pertain to you. As you might imagine selling an occupied unit can be a bit more complicated than if it is vacant. But be aware, you cannot evict tenants to sell the property.
The City of Oakland provides an outline for landlords at http://www.oaklandnet.com/government/hcd/rentboard/landlord.html
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Monday, October 8, 2007
When It’s Time To Sell, Don’t Take It Personally
Selling a home can be a stressful process. There is a lot to get in order and there are a lot of details to consider.
You have the basics behind you. The house and lot are spotless and de-cluttered. Now it is time to enhance the home's features so that you can grab those potential buyers.
Your First Home Selling Step: separate yourself from the personal feelings you have about the house--it is not your home now, it is a commodity you intend to market.
Trust Your Instincts. Try to evaluate the house as if you are seeing it for the first time. If you were a home buyer, what would you think about the house? What changes would make immediate improvements? What are the house's best features and how can you show them off?
Pack It Up
Pack away most of your family photos. Buyers should be allowed to imagine their possessions in the home. Pack up your personal collections, too, so that buyers don't get so interested in looking at them that they forget to look at the house. When home buyers start deciding how their furniture will fit into your rooms, you're on your way to a contract.
Make It More Spacious
Remove excess furniture to make rooms more spacious. Clean and organize the closets. Store boxes in an out of the way location or rent a temporary storage unit so you can de-clutter every part of the house.
Expose Desirable Features
Remove rugs if they expose nice hardwood floors. Remove heavy drapes that keep out natural light, especially if there's a great view out the windows.
Add Some Life
Plants go hand-in-hand with nearly any decor--living plants, not artificial versions.
Freshen Up
How about fresh paint? Are walls in the house dingy? Are the colors dated? Should you clean curtains or other window coverings?
Essential Curb Appeal
Keep the lawn nicely trimmed, and try adding other garden elements to grab a buyer's attention before they walk in the door. Outdoor lighting does wonders in the evenings--when many home buyers do drive-bys of properties. Buy a good-looking doorknob set. Sweep the driveway; pressure wash the house or sidewalks if necessary.
Your goal is to make home buyers fall in love with the house as soon as they see it from the street. And that comes with a bonus—a great overall impression is often enough to make a buyer more lenient about minor repair issues.
Every house is different, and no one expects you to be a professional home stager--but taking the time to prepare the house to the best of your abilities may put extra dollars in your pocket, and in less than average time.
Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
Friday, September 28, 2007
Rent to Own--Questions You Should Think About
With the current state of the Real Estate Market a rent to own situation may work for both seller and buyer. For sellers the advantage is the renter will eventually take permanent ownership of the property. For the buyer who is cash strapped or credit challenged, this may provide and opportunity to get into a home.
Rent to own can be a great avenue for both sellers and buyers, but you have to be aware of potential drawbacks. You will really need to sit down and ask yourself specific questions to decide if rent to own is really an option for you.
Questions for a Seller
*Who will tend to the property and pay for routine maintenance?
*Who pays for major repairs?
*What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
*Will you manage the property yourself, or hire an agent?
*What if the renters change their minds? Who keeps the money in the escrow account?
*If the buyers change their minds, what will be required to put the property back on the market?
Questions for a Buyer
*How much of the rent is going to the down payment?
*How locked in are you if change your mind? What will it cost you to get out of the deal?
*How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?
*What happens if you don’t qualify for a mortgage by the specified deadline? Can you continue to rent?
*Who will be responsible for routine maintenance?
*Who will pay for major repairs?
*Do you hope to strengthen your credit rating by paying rent on time? If so, will the owner report your good habits to credit bureaus?
Entering a rent to own situation can work, but you must make sure you have addressed any potential issues before you enter into a rent to own situation to mitigate any issues that can come up.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, September 25, 2007
New Law For Buyers In Oakland Help Pay for Siesmic Retrofitting
New Law In Oakland Helps Pay for Seismic Retrofitting
The United States Geological Service (USGS) has forecasted that a magnitude 6.7 or larger earthquake will occur in the San Francisco Bay Area with 62% probability An earthquake of this magnitude would cause billions of dollars of economic loss in the Bay Area, half of which would be loss in damaged residencies.Oakland is expected to lose more than one-third of its housing in a major earthquake along the Hayward Fault.
Seismic strengthening of residences—known as seismic retrofitting— not only save lives, but also housing. This helps communities to withstand the short and long term effects of a major disaster.
A study completed by the University of Buffalo in 2006 demonstrated that a 2 story wood frame house built to California earthquake standards and then shook in a simulated magnitude 6.7 earthquake, survived with little structural damage.
It is estimated that 85% of Oakland’s existing residential buildings constructed before modern earthquake codes were adopted have not been even minimally strengthened to withstand seismic activity. Permits in the past cost 10% of the cost of retrofitting (usually $7,000-$30,000) Many homeowners were avoiding the permit process altogether to defer costs. Without City inspections, homeowners cannot be assured that the work is meeting current seismic retrofit standards.
The City of Oakland has incorporated basic retrofit standards into the City’s Municipal Code, established a flat retrofit permit fee of $250, and launched a New Homeowner Voluntary Seismic Strengthening Reimbursement Incentive Program that allows new owners of older homes one year in which to retrofit their residences to the standards, and provided they complete the work according to plan, receive up to $5,000 reimbursement for their expenses. New owners must apply for the permit within 60 days of recording the transfer of ownership to be eligible for the Incentive Reimbursement Program.
What if you already own your home?
You can still take advantage of the flat $250 permitting fee for the retro-fitting.
How can I pay for the retrofitting?
Retrofitting a home can be costly. There are a few options available. You may want to consider a home equity line of credit. Or you can try doing some of the work yourself to bring down the costs. There is a handbook created by the City of Oakland a few years ago that explains how to do several retrofitting project yourself. You can check it out on the web at http://www.oaklandnet.com/earthquake/GetRetrofitHandbook.pdf
Retrofitting is a vital component to saving probably one of your greatest investments, your home.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
The United States Geological Service (USGS) has forecasted that a magnitude 6.7 or larger earthquake will occur in the San Francisco Bay Area with 62% probability An earthquake of this magnitude would cause billions of dollars of economic loss in the Bay Area, half of which would be loss in damaged residencies.Oakland is expected to lose more than one-third of its housing in a major earthquake along the Hayward Fault.
Seismic strengthening of residences—known as seismic retrofitting— not only save lives, but also housing. This helps communities to withstand the short and long term effects of a major disaster.
A study completed by the University of Buffalo in 2006 demonstrated that a 2 story wood frame house built to California earthquake standards and then shook in a simulated magnitude 6.7 earthquake, survived with little structural damage.
It is estimated that 85% of Oakland’s existing residential buildings constructed before modern earthquake codes were adopted have not been even minimally strengthened to withstand seismic activity. Permits in the past cost 10% of the cost of retrofitting (usually $7,000-$30,000) Many homeowners were avoiding the permit process altogether to defer costs. Without City inspections, homeowners cannot be assured that the work is meeting current seismic retrofit standards.
The City of Oakland has incorporated basic retrofit standards into the City’s Municipal Code, established a flat retrofit permit fee of $250, and launched a New Homeowner Voluntary Seismic Strengthening Reimbursement Incentive Program that allows new owners of older homes one year in which to retrofit their residences to the standards, and provided they complete the work according to plan, receive up to $5,000 reimbursement for their expenses. New owners must apply for the permit within 60 days of recording the transfer of ownership to be eligible for the Incentive Reimbursement Program.
What if you already own your home?
You can still take advantage of the flat $250 permitting fee for the retro-fitting.
How can I pay for the retrofitting?
Retrofitting a home can be costly. There are a few options available. You may want to consider a home equity line of credit. Or you can try doing some of the work yourself to bring down the costs. There is a handbook created by the City of Oakland a few years ago that explains how to do several retrofitting project yourself. You can check it out on the web at http://www.oaklandnet.com/earthquake/GetRetrofitHandbook.pdf
Retrofitting is a vital component to saving probably one of your greatest investments, your home.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Special Program Available for Oakland Unified Employees
Attention Oakland Unified Teachers and Employees!!
Do you currently rent and wonder if you can afford to purchase your own home?
Teachers in under performing schools qualify for a special program through the California Housing and Finance Agency (Cal-HFA).
If you are a first time home buyer or if you have haven’t owned a home in the last 3 years, you could qualify for below market rate financing through Cal-HFA and a special assistance program for a down payment or help with closing costs.
Want more information about this program?
Come join us for a First Time Home Buyers Seminar for Teachers.
Please RSVP at 510.213.1139 or by email at lcartolano@apr.com
Date: October 10th 2007
Time: 7PM
Location: LandAmerica Commonwealth Title
6200 Antioch Street Suite 101
Oakland, CA 94611
Can’t make the Seminar? Give us a call and we can meet with you personally to talk about the program.
Lisa Cartolano of Alain Pinel Realtors
Do you currently rent and wonder if you can afford to purchase your own home?
Teachers in under performing schools qualify for a special program through the California Housing and Finance Agency (Cal-HFA).
If you are a first time home buyer or if you have haven’t owned a home in the last 3 years, you could qualify for below market rate financing through Cal-HFA and a special assistance program for a down payment or help with closing costs.
Want more information about this program?
Come join us for a First Time Home Buyers Seminar for Teachers.
Please RSVP at 510.213.1139 or by email at lcartolano@apr.com
Date: October 10th 2007
Time: 7PM
Location: LandAmerica Commonwealth Title
6200 Antioch Street Suite 101
Oakland, CA 94611
Can’t make the Seminar? Give us a call and we can meet with you personally to talk about the program.
Lisa Cartolano of Alain Pinel Realtors
Tuesday, September 18, 2007
I Can't Pay My Mortgage? Is There Anything I Can Do?
Your Adjustable mortgage rate has just adjusted. Your mortgage payments have increased dramatically and you are having a hard time making the payments.
Is there anything you can do?
The answer is yes.
The first step is going to be talk to a lender and do it sooner than later. If you feel like you are in a situation where you will not be able to make payments, talk to a lender to see if you can re-finance your loan into a fixed rate. This may help stabilize the payments give you the peace of mind that you can afford to stay in your home.
What if you talk with a lender and it is not possible for you to refinance?
It may be that you are in a situation where you can't refinance. Maybe the house is financed for more than it can be appraised for, or maybe your credit has taken a hit and you can't get approved for a new loan, or maybe you are in a situation where you feel like you have more house you can afford.
There are options. You can sell your home. This may not be what you are thinking, but this is one way to deal with your situation if you can't refinance. You will want to talk to a Realtor to see what your situation looks like. There are two avenues of sale at this point.
1. A Standard Sale
2. A Short Sale
A standard sale is where you are able to sell the home for more than than you owe. This is what most think of traditionally when selling the home.
A short sale is where you are selling the home for less than you owe. This can be a tough situation and you will want to involve a Realtor early on to help you navigate a short sale. See my next blog for the ins and outs of a short sale.
If you are feeling like your mortgage payments are getting away from you do remember that there are options to you. Just make sure to be honest with yourself and your situation and contact a professional earlier than later.
If you have any questions or would like further information, you can contact me at 510.213.1139 or at lcartolano@apr.com
Is there anything you can do?
The answer is yes.
The first step is going to be talk to a lender and do it sooner than later. If you feel like you are in a situation where you will not be able to make payments, talk to a lender to see if you can re-finance your loan into a fixed rate. This may help stabilize the payments give you the peace of mind that you can afford to stay in your home.
What if you talk with a lender and it is not possible for you to refinance?
It may be that you are in a situation where you can't refinance. Maybe the house is financed for more than it can be appraised for, or maybe your credit has taken a hit and you can't get approved for a new loan, or maybe you are in a situation where you feel like you have more house you can afford.
There are options. You can sell your home. This may not be what you are thinking, but this is one way to deal with your situation if you can't refinance. You will want to talk to a Realtor to see what your situation looks like. There are two avenues of sale at this point.
1. A Standard Sale
2. A Short Sale
A standard sale is where you are able to sell the home for more than than you owe. This is what most think of traditionally when selling the home.
A short sale is where you are selling the home for less than you owe. This can be a tough situation and you will want to involve a Realtor early on to help you navigate a short sale. See my next blog for the ins and outs of a short sale.
If you are feeling like your mortgage payments are getting away from you do remember that there are options to you. Just make sure to be honest with yourself and your situation and contact a professional earlier than later.
If you have any questions or would like further information, you can contact me at 510.213.1139 or at lcartolano@apr.com
What Is A Short Sale?
Odds are you have heard the news lately about real estate. Lately we are starting to see a lot more short sales.
What is a short sale?
This is when trying to sell a home you are putting on the market for less than you owe.
There are a variety of reasons for doing this:
1. You purchased a couple of years ago and values in your area have come down since then.
2. You refinanced your home to get money for other purposes and now your home is mortgaged for more than it can sell.
Why Would I sell if I Owe More Than I can Sell it?
There are a variety of reasons why you might find yourself in this situation. Maybe you are a spouse lost your job and you cannot afford to stay in your home, you have been relocated for your job and need to move out of state, your mortgage payments have increased to a point where you can no longer make the payments.
A short sale can help you avoid foreclosure
If things have gotten to a point where payments are difficult and you feel like you are not going to be able to keep them up a short sale could be a lot better alternative to foreclosure. With a short sale you can sell the house and get out from your mortgage. If you just stop making payments eventually the bank will come knocking on your door and ultimately can take possession of the house. If this happens your credit can be damaged for several years and forget even trying to buy a home for about 7.
How is a short sale different?
If you are not using a Realtor to help you sell your home at this point, you may want to. Short sales are not for the faint of heart and they typically take a lot of time and energy.
The first step is to contact the lender and speak with someone at the loss and mitigation group. Some lenders will be up to speed and will have a list of paperwork to send out to be filled and signed off on, an others will not. The tough part of a short sale is every lender will deal with it differently.
Basically the goal is to negotiate with the lender for them to "forgive" the difference between what you owe and what it sells for. Some lenders will negotiate this up front, others will want to see an offer before they will even discuss it.
Short sales can be hard to sell.
Get help early!!! A Realtor will be able to help you navigate the negotiations with the bank. In some instances it can take weeks of phone calls to even get a person with the lender that has the authorization to make any decisions regarding a short sale of your home.
Buyers can be wary of short sales
As a buyer you may have the perception that something is wrong with the house. Or if something is unearthed during an inspection will you the seller be able to negotiate work that may need to be done.
It is really important to look at your situation to see what makes the most sense for your situation. Get help early and be realistic about your situation. It is not a happy place to be in, but if you are able to successfully complete a short sale you can limit the number of financial headaches for yourself in the future.
If you would like more information about short sales, you can contact me at 510.213.1139 or at lcartolano@apr.com
What is a short sale?
This is when trying to sell a home you are putting on the market for less than you owe.
There are a variety of reasons for doing this:
1. You purchased a couple of years ago and values in your area have come down since then.
2. You refinanced your home to get money for other purposes and now your home is mortgaged for more than it can sell.
Why Would I sell if I Owe More Than I can Sell it?
There are a variety of reasons why you might find yourself in this situation. Maybe you are a spouse lost your job and you cannot afford to stay in your home, you have been relocated for your job and need to move out of state, your mortgage payments have increased to a point where you can no longer make the payments.
A short sale can help you avoid foreclosure
If things have gotten to a point where payments are difficult and you feel like you are not going to be able to keep them up a short sale could be a lot better alternative to foreclosure. With a short sale you can sell the house and get out from your mortgage. If you just stop making payments eventually the bank will come knocking on your door and ultimately can take possession of the house. If this happens your credit can be damaged for several years and forget even trying to buy a home for about 7.
How is a short sale different?
If you are not using a Realtor to help you sell your home at this point, you may want to. Short sales are not for the faint of heart and they typically take a lot of time and energy.
The first step is to contact the lender and speak with someone at the loss and mitigation group. Some lenders will be up to speed and will have a list of paperwork to send out to be filled and signed off on, an others will not. The tough part of a short sale is every lender will deal with it differently.
Basically the goal is to negotiate with the lender for them to "forgive" the difference between what you owe and what it sells for. Some lenders will negotiate this up front, others will want to see an offer before they will even discuss it.
Short sales can be hard to sell.
Get help early!!! A Realtor will be able to help you navigate the negotiations with the bank. In some instances it can take weeks of phone calls to even get a person with the lender that has the authorization to make any decisions regarding a short sale of your home.
Buyers can be wary of short sales
As a buyer you may have the perception that something is wrong with the house. Or if something is unearthed during an inspection will you the seller be able to negotiate work that may need to be done.
It is really important to look at your situation to see what makes the most sense for your situation. Get help early and be realistic about your situation. It is not a happy place to be in, but if you are able to successfully complete a short sale you can limit the number of financial headaches for yourself in the future.
If you would like more information about short sales, you can contact me at 510.213.1139 or at lcartolano@apr.com
Monday, September 17, 2007
Charming Cottage Condo
Charming Detached Cottage Condo Located In The Heart of Temescal
4230 Shafter Ave Oakland, CA
Offered at $375,000
Conveniently located near public transportation, Piedmont Ave, Rockridge and Temescal shops, this home has a lot to offer at a fantastic price.
*1 Bedroom
*1 Bath
*Wood burning Fireplace
*Custom Plantation Shutters
*Designer light fixtures throughout
*New Roof
*Low HOA dues
For more information contact me at 510.213.1139 or at lcartolano@apr.com
*****Special Financing Available to First Time Home Buyers through a program offered by the state of California. In order to obtain more information about these home loan programs and other loan programs, please call 1-888-766-7692 ext. 90460 for a 24 hr. FREE Recorded Message******
4230 Shafter Ave Oakland, CA
Offered at $375,000
Conveniently located near public transportation, Piedmont Ave, Rockridge and Temescal shops, this home has a lot to offer at a fantastic price.
*1 Bedroom
*1 Bath
*Wood burning Fireplace
*Custom Plantation Shutters
*Designer light fixtures throughout
*New Roof
*Low HOA dues
For more information contact me at 510.213.1139 or at lcartolano@apr.com
*****Special Financing Available to First Time Home Buyers through a program offered by the state of California. In order to obtain more information about these home loan programs and other loan programs, please call 1-888-766-7692 ext. 90460 for a 24 hr. FREE Recorded Message******
Tuesday, September 11, 2007
Moving On Up...
I was recently asked for some insight from clients, friends and neighbors what they might want to see on my blog.
Jen wanted me to talk about moving up from your first house to a bigger home to accommodate a growing family and changing needs in a home.
If is very common to purchase your first home you find your needs have changed.
Maybe you had kids and then figure out the house you are currently are living in is too small, is not in the school district you would like, you may want to live in an area that is less urban, or maybe you want to be closer to amenities and public transportation. You will need to evaluate your situation and how your needs may have changed.
The first step would to be to sit down and really think about what you want in a new house and write it down!
**How many bedrooms and bathrooms to do you want?
**Do you want a house with no stairs?
**Is there a particular school district you want to live in?
**Do you want to live in a more suburban setting?
**Do you want to live closer to public transportation?
**Do you have a particular city or community you want to live in?
Write down everything. Remember this is what you want. This list may change, but get it all down on paper.
Now evaluate your wish list with your current house. Do any of the your wants match what you currently have?
The next step you may want to enlist the help of a Realtor. You will need to evaluate your current home as if you were going to sell it. What kind of equity do you think you might have to use to help with the purchase a new home?
Have a Realtor help you with a market analysis of your home so you have some ballpark figures to work with.
You will need to evaluate the marketplace for you current home as compared to a home in the area you would like to move. Again your Realtor can help you determine what the marketplace is doing in the areas you are interested in moving to.
If you live in an area where homes are going for $500,000, upgrading to a home for 2 million may not be realistic (unless you have the winning lottery ticket).
The market has changed and the strategies for selling and upgrading to a new house have too.
Be realistic.
Housing prices have changed. Keep in mind a 5% decrease in prices in a home worth $500,000 is only $25,000 and a 5% decrease in prices in a home worth $800,000 is $40,000. The neighbor up the street may have sold their house 2 years ago at $100,000 over asking, but in this current marketplace this more than likely won't happen.
Be smart.
It may be a much better approach to sell your first home and then look to buy the upgrade. It will also be a lot easier to take the proceeds from the sale of your first home and directly use that money to help with the purchase of the new one.
Think Like a Buyer
--Even when selling your house. In any market the buyers are the one's who set the prices. What buyers are willing to pay for ultimately sets the stage for the sale of your home.
Get Help. Use a Realtor and lender to help you evaluate your situation. If you can sell your house and reap a fair amount of equity, but can't qualify for a loan for the second home, you may want to reconsider what your options are.
Selling and buying a house can be a very stressful time. There is a lot to do and emotions can run high. There will be certain roadblocks that can cause bumps in the road to you ultimate goal of upgrading to a new home, but with the help of a qualified Realtor and lender you can be on the road to your new home.
If you have any comments or questions regarding moving up to your next home, you can contact me at lcartolano@apr.com or at 510.213.1139
Jen wanted me to talk about moving up from your first house to a bigger home to accommodate a growing family and changing needs in a home.
If is very common to purchase your first home you find your needs have changed.
Maybe you had kids and then figure out the house you are currently are living in is too small, is not in the school district you would like, you may want to live in an area that is less urban, or maybe you want to be closer to amenities and public transportation. You will need to evaluate your situation and how your needs may have changed.
The first step would to be to sit down and really think about what you want in a new house and write it down!
**How many bedrooms and bathrooms to do you want?
**Do you want a house with no stairs?
**Is there a particular school district you want to live in?
**Do you want to live in a more suburban setting?
**Do you want to live closer to public transportation?
**Do you have a particular city or community you want to live in?
Write down everything. Remember this is what you want. This list may change, but get it all down on paper.
Now evaluate your wish list with your current house. Do any of the your wants match what you currently have?
The next step you may want to enlist the help of a Realtor. You will need to evaluate your current home as if you were going to sell it. What kind of equity do you think you might have to use to help with the purchase a new home?
Have a Realtor help you with a market analysis of your home so you have some ballpark figures to work with.
You will need to evaluate the marketplace for you current home as compared to a home in the area you would like to move. Again your Realtor can help you determine what the marketplace is doing in the areas you are interested in moving to.
If you live in an area where homes are going for $500,000, upgrading to a home for 2 million may not be realistic (unless you have the winning lottery ticket).
The market has changed and the strategies for selling and upgrading to a new house have too.
Be realistic.
Housing prices have changed. Keep in mind a 5% decrease in prices in a home worth $500,000 is only $25,000 and a 5% decrease in prices in a home worth $800,000 is $40,000. The neighbor up the street may have sold their house 2 years ago at $100,000 over asking, but in this current marketplace this more than likely won't happen.
Be smart.
It may be a much better approach to sell your first home and then look to buy the upgrade. It will also be a lot easier to take the proceeds from the sale of your first home and directly use that money to help with the purchase of the new one.
Think Like a Buyer
--Even when selling your house. In any market the buyers are the one's who set the prices. What buyers are willing to pay for ultimately sets the stage for the sale of your home.
Get Help. Use a Realtor and lender to help you evaluate your situation. If you can sell your house and reap a fair amount of equity, but can't qualify for a loan for the second home, you may want to reconsider what your options are.
Selling and buying a house can be a very stressful time. There is a lot to do and emotions can run high. There will be certain roadblocks that can cause bumps in the road to you ultimate goal of upgrading to a new home, but with the help of a qualified Realtor and lender you can be on the road to your new home.
If you have any comments or questions regarding moving up to your next home, you can contact me at lcartolano@apr.com or at 510.213.1139
Friday, September 7, 2007
The Buying Process What Steps Do I Take Step 7
From Accepted Offer to Homeownership (Escrow Timeline)
Your Relator has submitted and offer for you and it has been accepted. Now the rubber hits the road so to speak.
First you will probably talk with your lender. They will need to tie up any loose ends with you and will contact the appraiser to appraise the property. One piece of advise: Do NOT make any major purchases!! Before your loan will fund, the lender will pull your credit one more time. If you make any major purchases like buying new furniture or a car, this can affect your credit rating and could affect your loan. Wait until you hav the keys in hand to your new home before you make any large purchases.
Next you will have a home inspection. This means your Realtor probably set up at time for a home inspector to come in and take a look at the condition of the home. You might also have a roof inspection, chimney inspection, foundation inspection, or sewer lateral inspection at this time. This will depend on what information the seller provided and what you feel is important to find out about the house. Often after the general inspection, they will recommend certain areas be inspected further.
During the inspection time period you the buyer will need to do your own investigations. You will want to check out the neighborhood at different times of the day, try to talk to neighbors, check out crime stats. Remember YOU have to be comfortable with where you are buying and only you can make those decisions.
Often times during the inspection time period items will come up that need repair. This is were a lot of negotiating can go back and forth between both sides. You the buyer may want to ask for some of the work to be done and the seller may or may not be willing or able to. It is important for you to keep in mind what is realy important to you and what are potential deal breakers.
Once we get through the appraisal, loan approval and inspection time periods you will in writing remove all your contingencies. After you remove contingencies you are pretty much committed. Negotiations are complete between buyer and seller and now the title company will wait for the lender to deposit funds (the money you are borrowing), disperse funds to the seller and transfer the deed of trust to the property to you the buyer. During this time you will also meet with the title company to sign loan documnets, and instructions for the deed of trust transfer.
Once the deed has been recorded with the County the keys are yours!
If you have any questions or comments you can contact me at lcartolano@apr.com or at 510.213.1139
Your Relator has submitted and offer for you and it has been accepted. Now the rubber hits the road so to speak.
First you will probably talk with your lender. They will need to tie up any loose ends with you and will contact the appraiser to appraise the property. One piece of advise: Do NOT make any major purchases!! Before your loan will fund, the lender will pull your credit one more time. If you make any major purchases like buying new furniture or a car, this can affect your credit rating and could affect your loan. Wait until you hav the keys in hand to your new home before you make any large purchases.
Next you will have a home inspection. This means your Realtor probably set up at time for a home inspector to come in and take a look at the condition of the home. You might also have a roof inspection, chimney inspection, foundation inspection, or sewer lateral inspection at this time. This will depend on what information the seller provided and what you feel is important to find out about the house. Often after the general inspection, they will recommend certain areas be inspected further.
During the inspection time period you the buyer will need to do your own investigations. You will want to check out the neighborhood at different times of the day, try to talk to neighbors, check out crime stats. Remember YOU have to be comfortable with where you are buying and only you can make those decisions.
Often times during the inspection time period items will come up that need repair. This is were a lot of negotiating can go back and forth between both sides. You the buyer may want to ask for some of the work to be done and the seller may or may not be willing or able to. It is important for you to keep in mind what is realy important to you and what are potential deal breakers.
Once we get through the appraisal, loan approval and inspection time periods you will in writing remove all your contingencies. After you remove contingencies you are pretty much committed. Negotiations are complete between buyer and seller and now the title company will wait for the lender to deposit funds (the money you are borrowing), disperse funds to the seller and transfer the deed of trust to the property to you the buyer. During this time you will also meet with the title company to sign loan documnets, and instructions for the deed of trust transfer.
Once the deed has been recorded with the County the keys are yours!
If you have any questions or comments you can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, September 4, 2007
The Buying Process What Steps Do I Take Step 6
Putting Pen to Paper (so to speak)
This is usually the time when some buyers become a little nervous. This is a big purchase and when you see it in black and white it can be a little unnerving for some.
The first page of the contract is the one where you will probably spend the most time going over with your Realtor. Here you:
1. Set the offer price
2. Indicate the amount of earnest money you are putting down.
3. Set the escrow time period (if you want to)
4. Set the time frame for loan and appraisal contingencies
I won't bore you with all the legalese that is in the contract as a whole but there are some other very important aspects to the contract that you will want to be aware of:
1. The inspection contingency time frame. During the inspection time frame you may have an inspector who will perform a general home inspection and you may also want to have a foundation inspection, sewer lateral inspection, chimney inspection, and roof inspection. It will all depend on what information you were given by the seller and what kind of information you want to know about the house.
During this time frame you are also are to check out the neighborhood. Are you comfortable with the neighborhood? I always suggest driving by the new house at various times of the day and night.
If you are purchasing a condo this is the time frame when you will look over the HOA documents to check to see if there have been any issues with the building, if there are any special assessments, what kind of rules and regulations they have.
With your offer you will also probably include a list of disclosures that you will need to sign. There are some disclosures that will be specific to which city you are looking to purchase property and if the listing agent of the property has provided any disclosures regarding the property.
I will have a blog that discusses disclosures in detail so keep an eye out for that one.
Now that you have everything signed, and a check written, it is time to get the offer over to the seller to see what happens!!
If you have any questions or comments you can contact me at lcartolano@apr.com or at 510.213.1139.
This is usually the time when some buyers become a little nervous. This is a big purchase and when you see it in black and white it can be a little unnerving for some.
The first page of the contract is the one where you will probably spend the most time going over with your Realtor. Here you:
1. Set the offer price
2. Indicate the amount of earnest money you are putting down.
3. Set the escrow time period (if you want to)
4. Set the time frame for loan and appraisal contingencies
I won't bore you with all the legalese that is in the contract as a whole but there are some other very important aspects to the contract that you will want to be aware of:
1. The inspection contingency time frame. During the inspection time frame you may have an inspector who will perform a general home inspection and you may also want to have a foundation inspection, sewer lateral inspection, chimney inspection, and roof inspection. It will all depend on what information you were given by the seller and what kind of information you want to know about the house.
During this time frame you are also are to check out the neighborhood. Are you comfortable with the neighborhood? I always suggest driving by the new house at various times of the day and night.
If you are purchasing a condo this is the time frame when you will look over the HOA documents to check to see if there have been any issues with the building, if there are any special assessments, what kind of rules and regulations they have.
With your offer you will also probably include a list of disclosures that you will need to sign. There are some disclosures that will be specific to which city you are looking to purchase property and if the listing agent of the property has provided any disclosures regarding the property.
I will have a blog that discusses disclosures in detail so keep an eye out for that one.
Now that you have everything signed, and a check written, it is time to get the offer over to the seller to see what happens!!
If you have any questions or comments you can contact me at lcartolano@apr.com or at 510.213.1139.
Wednesday, August 29, 2007
The Buying Process What Steps Do I Take Step 5
You now are at the point you want to write an offer for a property you have found.
What do you need to prepare to write an offer?
1. A pre-approval letter. By this point you have already met with a lender and have been pre-approved. You will want to have this letter submitted with your offer. This will let the seller know that you have been pre-approved and are able to purchase the home.
2. A check for the earnest deposit. What is an earnest deposit? This is the amount you will put down with the offer. This check is written out to a title company who is the neutral 3rd party and the handler of money. What this says to the the seller is you are a serious buyer. You want this house and you are willing to put money down to ensure you get it.
3. Determine offer price and terms. You have been researching homes and areas. Your Realtor has provided you with comparables to the property you are interested in so you know what other homes have sold for recently. You have seen the disclosures on the property. Your Realtor will have found out if other offers are coming in. With all this information you are able to determine what price you are going to offer for the house.
4. What are the Terms of the Contract? Terms of the contract are:
A. Appraisal Contingency
B. Loan Contingency
C. Inspection Contingency
What are contingencies? These are time lines that allow the buyer to get their loan approved, have the property appraised to ensure that the appraised value of the home is at least what you are offering to purchase it at and the inspection contingency allows you to have the home inspected to ensure everything is in good working shape, and that you have had time to research the neighborhood, review HOA docs, etc.
These contingencies have a finite time line that you the buyer can modify. This is what is the terms of the contract.
Taking these steps will prepare you to putting pen to paper and writing the contract. Stay tuned for my next Blog regarding writing the contract.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
What do you need to prepare to write an offer?
1. A pre-approval letter. By this point you have already met with a lender and have been pre-approved. You will want to have this letter submitted with your offer. This will let the seller know that you have been pre-approved and are able to purchase the home.
2. A check for the earnest deposit. What is an earnest deposit? This is the amount you will put down with the offer. This check is written out to a title company who is the neutral 3rd party and the handler of money. What this says to the the seller is you are a serious buyer. You want this house and you are willing to put money down to ensure you get it.
3. Determine offer price and terms. You have been researching homes and areas. Your Realtor has provided you with comparables to the property you are interested in so you know what other homes have sold for recently. You have seen the disclosures on the property. Your Realtor will have found out if other offers are coming in. With all this information you are able to determine what price you are going to offer for the house.
4. What are the Terms of the Contract? Terms of the contract are:
A. Appraisal Contingency
B. Loan Contingency
C. Inspection Contingency
What are contingencies? These are time lines that allow the buyer to get their loan approved, have the property appraised to ensure that the appraised value of the home is at least what you are offering to purchase it at and the inspection contingency allows you to have the home inspected to ensure everything is in good working shape, and that you have had time to research the neighborhood, review HOA docs, etc.
These contingencies have a finite time line that you the buyer can modify. This is what is the terms of the contract.
Taking these steps will prepare you to putting pen to paper and writing the contract. Stay tuned for my next Blog regarding writing the contract.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Friday, August 24, 2007
The Buying Process--What Steps Do I Take? Step 4
Step 4 Getting Ready to Write An Offer
So you have been researching areas, looking at houses and you have found the house. What's next?
You have found that house you would like to buy. There are some details your Realtor will need to find out before you put anything on paper:
1. Is there an offer date? If yes, do they have any other confirmed offers coming in? What this will do for you is to set the expectation level regarding potential competition. In this market you do not see this as often, but it still does happen. If you know that you are potentially 1 of 3 offers, you can work with your Realtor to write a competitive offer.
2. Are there any disclosures. The level of information provided by different sellers and different Real Estate Agencies will vary. Often times in preparation for the market sellers will have a pest report done, maybe a sewer lateral report, a home inspection report, a roof report. Also different cities will have different disclosures required. (look for a blog to come regarding dislcosures).
So you have all of this information up front. You know if there are any other offers coming in and you have dislcosures. Now it is time for you to work with your Realtor on writing an offer.
See my next blog for more inforamtion on Writing and Offer.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
So you have been researching areas, looking at houses and you have found the house. What's next?
You have found that house you would like to buy. There are some details your Realtor will need to find out before you put anything on paper:
1. Is there an offer date? If yes, do they have any other confirmed offers coming in? What this will do for you is to set the expectation level regarding potential competition. In this market you do not see this as often, but it still does happen. If you know that you are potentially 1 of 3 offers, you can work with your Realtor to write a competitive offer.
2. Are there any disclosures. The level of information provided by different sellers and different Real Estate Agencies will vary. Often times in preparation for the market sellers will have a pest report done, maybe a sewer lateral report, a home inspection report, a roof report. Also different cities will have different disclosures required. (look for a blog to come regarding dislcosures).
So you have all of this information up front. You know if there are any other offers coming in and you have dislcosures. Now it is time for you to work with your Realtor on writing an offer.
See my next blog for more inforamtion on Writing and Offer.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Wednesday, August 22, 2007
The Buying Process--What Steps Do I Take? Step 3
Step 3 How Do I find a House?
What resources are available? When and why should you contact a Realtor?
Resources Available
There is a wealth of web based resources out there. You can look at homes for sale, research areas and find open homes. Below are some resources for you can take a look at:
www.lisacartolano.com (allows you to set your self up to recieve alerts about homes that come on the market that meet your specifications)
Trulia
Craigslist.org
Yahoo
There are many other online resources as well.
You can also ask friends, family, co-workers about what they like and don't like about where they live.
When and why should you contact a Realtor?
Knowing real estate is what a Realtor does for a living. When you contact a Realtor early on, you can have that person help you to define your wants and needs, help you learn about areas you are interested in and learn about other areas you may not know about, they know their marketplace.
They can assist you in finding a lender, can help facilitate finding out information regarding a home you are interested in. (for example getting disclosures regarding the property, finding out if there are any other offers coming in, what is the seller's motivation). They are they to help you, to negotiate for you, to protect your best interests.
Remember to take a deep breath. It is an exciting process looking for a home and it should be fun!
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
What resources are available? When and why should you contact a Realtor?
Resources Available
There is a wealth of web based resources out there. You can look at homes for sale, research areas and find open homes. Below are some resources for you can take a look at:
www.lisacartolano.com (allows you to set your self up to recieve alerts about homes that come on the market that meet your specifications)
Trulia
Craigslist.org
Yahoo
There are many other online resources as well.
You can also ask friends, family, co-workers about what they like and don't like about where they live.
When and why should you contact a Realtor?
Knowing real estate is what a Realtor does for a living. When you contact a Realtor early on, you can have that person help you to define your wants and needs, help you learn about areas you are interested in and learn about other areas you may not know about, they know their marketplace.
They can assist you in finding a lender, can help facilitate finding out information regarding a home you are interested in. (for example getting disclosures regarding the property, finding out if there are any other offers coming in, what is the seller's motivation). They are they to help you, to negotiate for you, to protect your best interests.
Remember to take a deep breath. It is an exciting process looking for a home and it should be fun!
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, August 21, 2007
The Buying Process--What Steps Do You Take? Step 2
Step 2 Narrow Your Focus
You have talked with a lender and now you have a good idea of what you can afford and what you are comfortable paying for a house.
Now What?
It is a good idea to sit down and think about what you want in a house and a neighborhood. If you are buying with someone else you both need to make sure to sit down and talk about what each of you want in a house.
*Do you want a new house or older construction?
*Do you want 2 or 3 bedrooms?
*How many bathrooms?
*Do you want something that needs some cosmetic work or would your prefer something you can just move into.
*Do you have a specific neighborhood you want to live in?
*Do you want to be near public transportation?
*Do you want to walking distance to ammeneties?
*Is there an area you don't want to live?
Now you have the list of you wants. At this point it is a good idea to look at what you consider a must have versus a would like to have. Maybe you have to have 3 bedrooms, but you could live with one bathroom, etc. etc.
When considering a neighborhood it is a good idea to keep an open mind. There may be one neighborhood you have your heart set on but if homes in this area are going for over a million and your price point is closer to $650, it will be very tough to find a home you would like in that particular neighborhood. Definitley don't rule it out, but being realistic about your options will make the home search process a lot less painful.
Remember your list can and probably will change!! And that is okay. Through the search process you often times discover areas you did not know about and certain have to haves from your list may become a would like to have.
Next Step 3- How Do I find a House?
You have talked with a lender and now you have a good idea of what you can afford and what you are comfortable paying for a house.
Now What?
It is a good idea to sit down and think about what you want in a house and a neighborhood. If you are buying with someone else you both need to make sure to sit down and talk about what each of you want in a house.
*Do you want a new house or older construction?
*Do you want 2 or 3 bedrooms?
*How many bathrooms?
*Do you want something that needs some cosmetic work or would your prefer something you can just move into.
*Do you have a specific neighborhood you want to live in?
*Do you want to be near public transportation?
*Do you want to walking distance to ammeneties?
*Is there an area you don't want to live?
Now you have the list of you wants. At this point it is a good idea to look at what you consider a must have versus a would like to have. Maybe you have to have 3 bedrooms, but you could live with one bathroom, etc. etc.
When considering a neighborhood it is a good idea to keep an open mind. There may be one neighborhood you have your heart set on but if homes in this area are going for over a million and your price point is closer to $650, it will be very tough to find a home you would like in that particular neighborhood. Definitley don't rule it out, but being realistic about your options will make the home search process a lot less painful.
Remember your list can and probably will change!! And that is okay. Through the search process you often times discover areas you did not know about and certain have to haves from your list may become a would like to have.
Next Step 3- How Do I find a House?
Sunday, August 19, 2007
The Buying Process--What Steps Do You Take? Step 1
Step 1-Finding The Right Lender
You have considered buying a home, but you are not sure how to get started. You have looked some online and maybe you have gone to a few open houses.
The first step is often the one that can be a little nerve racking for some, and not the most fun. You need to talk to a lender.
Why do you need to do this up front? For one your credit score will impact what kind of loan you can get. It is a good idea to have a lender pull your credit so you have an idea of what your credit score is. You may have some dings on your credit that are incorrect, and if you have the time you can often have erroneous dings removed from your credit report, but you will need some time to do this. Also how much money you have to put down will affect the type of loan you can get and the rate of the loan.
You will also want to find out if there are any special programs you might qualify for that can help you get into a home. For example there are special programs available for first time home owners, or if you are a teacher, police officer or fireman. You also may have family that is willing to help chip in for the down payment, so you will want to talk to a lender about how you can use this money to your advantage.
It is very important to find out about your credit score, what kind of financing is available and how much are you comfortable spending. You may get approved for a certain dollar amount, but you need to look at the monthly costs including property taxes, insurance, etc. to make sure you have a payment you are comfortable with.
How can you find a lender?
Ask your friends and family. They may have worked with someone they were impressed with. You can also ask a Realtor. Realtors deal with many different lenders and often have a few resources they can pass along.
Once you have a chance to sit down and talk with a lender you should be ready to move on to the next step, narrowing your focus to begin your search. Look for my next blog for this information.
If you have any questions or are looking for a lender you can contact me at lcartolao@apr.com or 510.213.1139
You have considered buying a home, but you are not sure how to get started. You have looked some online and maybe you have gone to a few open houses.
The first step is often the one that can be a little nerve racking for some, and not the most fun. You need to talk to a lender.
Why do you need to do this up front? For one your credit score will impact what kind of loan you can get. It is a good idea to have a lender pull your credit so you have an idea of what your credit score is. You may have some dings on your credit that are incorrect, and if you have the time you can often have erroneous dings removed from your credit report, but you will need some time to do this. Also how much money you have to put down will affect the type of loan you can get and the rate of the loan.
You will also want to find out if there are any special programs you might qualify for that can help you get into a home. For example there are special programs available for first time home owners, or if you are a teacher, police officer or fireman. You also may have family that is willing to help chip in for the down payment, so you will want to talk to a lender about how you can use this money to your advantage.
It is very important to find out about your credit score, what kind of financing is available and how much are you comfortable spending. You may get approved for a certain dollar amount, but you need to look at the monthly costs including property taxes, insurance, etc. to make sure you have a payment you are comfortable with.
How can you find a lender?
Ask your friends and family. They may have worked with someone they were impressed with. You can also ask a Realtor. Realtors deal with many different lenders and often have a few resources they can pass along.
Once you have a chance to sit down and talk with a lender you should be ready to move on to the next step, narrowing your focus to begin your search. Look for my next blog for this information.
If you have any questions or are looking for a lender you can contact me at lcartolao@apr.com or 510.213.1139
Thursday, August 16, 2007
Where Oh Where Has All The Money Gone?
What's Up the Mortgage Industry?
So the news is filled with it. We have all heard about lenders going out of business, the sub-prime market going to hell in a hand basket and now you hear you can't buy a home with less than 20% down.
What is Really going On?
Some of the news you read is true. Yes interest rates are up. Yes the sub-prime market is pretty much non-existent now, but there are still options. And yes a lot of lenders are closing their doors.
What is going on now is a lot of options that brokers had available are not there. The big banks like Wells Fargo, Bank of America, etc and their affiliates are still doing competitive rates and are still doing some 100% financing. Jumbo loans (loans over $417,000) are still available. Brokers with a good working relationship with the larger lenders are also able to help you find a loan.
This frenzy over the mortgage market is very reminiscent to the whole dot bomb era where everyone was a paper millionaire one day and the next just a 28 year old techy looking for a job.
There is a shake up going on, but acting like the sky is falling isn't a rational reaction to it all. If you are looking for a loan, do your homework! Find a lender who is reputable and who can explain to you what is really going on in the market, and what they are hearing from industry leaders.
If you are looking to buy, there are still a lot of options out there, you just have to be reasonable in your expectations.
Feel free to contact me if you have any questions or if you would like the recommendation of a lender to speak with.
So the news is filled with it. We have all heard about lenders going out of business, the sub-prime market going to hell in a hand basket and now you hear you can't buy a home with less than 20% down.
What is Really going On?
Some of the news you read is true. Yes interest rates are up. Yes the sub-prime market is pretty much non-existent now, but there are still options. And yes a lot of lenders are closing their doors.
What is going on now is a lot of options that brokers had available are not there. The big banks like Wells Fargo, Bank of America, etc and their affiliates are still doing competitive rates and are still doing some 100% financing. Jumbo loans (loans over $417,000) are still available. Brokers with a good working relationship with the larger lenders are also able to help you find a loan.
This frenzy over the mortgage market is very reminiscent to the whole dot bomb era where everyone was a paper millionaire one day and the next just a 28 year old techy looking for a job.
There is a shake up going on, but acting like the sky is falling isn't a rational reaction to it all. If you are looking for a loan, do your homework! Find a lender who is reputable and who can explain to you what is really going on in the market, and what they are hearing from industry leaders.
If you are looking to buy, there are still a lot of options out there, you just have to be reasonable in your expectations.
Feel free to contact me if you have any questions or if you would like the recommendation of a lender to speak with.
Friday, August 3, 2007
When Should I Contact A Realtor When Considering Buying?
So you have been thinking about buying a home. You've started reasearching areas, you have an idea about what you can afford and you are starting to look. Your not expecting to buy in the next few months, so you are just in the look and see phase.
When should you contact a Realtor?
Think about this scenerio. You go to an open house and you feel like you have found your dream home. You aren't working with a Realtor so you talk to the listing agent about putting in an offer for you.
Now you can begin to have a sticky realtionship. The Realtor is representing both the buyer and seller. As the buyer you may want to know how motivated the seller is, can they negotiate price. The Realtor in this situation really can't do much to help you. Since he/she has first hand knowledge of the seller's situation, they really can't fully represent the seller and the buyer in recommending an offer price.
So you get through the first hurdle of offer price and now you have a issue that comes up from the home inspection and you want some items fixed. Again the Relator is trying to represent both sides of the sale. You begin to feel like who are they really working for? Things can become quite contencious.
In my opinion a Realtor can not really do the best job for either buyer or seller when they are representing both sides of the deal.
If you are looking to buy, it is best to try and contact a Realtor early in the process. Even if you are looking to buy in the future a Realtor can help you locate the areas you might be interested in, can send you a list of properties as they come on the market and give you an idea of the current marketplace keep you up to date on information in the Real Estate Market.
Want more inforamtion? You can contact me at lcartolano@apr.com
When should you contact a Realtor?
Think about this scenerio. You go to an open house and you feel like you have found your dream home. You aren't working with a Realtor so you talk to the listing agent about putting in an offer for you.
Now you can begin to have a sticky realtionship. The Realtor is representing both the buyer and seller. As the buyer you may want to know how motivated the seller is, can they negotiate price. The Realtor in this situation really can't do much to help you. Since he/she has first hand knowledge of the seller's situation, they really can't fully represent the seller and the buyer in recommending an offer price.
So you get through the first hurdle of offer price and now you have a issue that comes up from the home inspection and you want some items fixed. Again the Relator is trying to represent both sides of the sale. You begin to feel like who are they really working for? Things can become quite contencious.
In my opinion a Realtor can not really do the best job for either buyer or seller when they are representing both sides of the deal.
If you are looking to buy, it is best to try and contact a Realtor early in the process. Even if you are looking to buy in the future a Realtor can help you locate the areas you might be interested in, can send you a list of properties as they come on the market and give you an idea of the current marketplace keep you up to date on information in the Real Estate Market.
Want more inforamtion? You can contact me at lcartolano@apr.com
Tuesday, June 26, 2007
GIFTS MAKE A GREAT DOWN PAYMENT
If you are looking to purchase a home you may have a family memeber who wants to help. When using gift money, there are a few things to know:
Tax Rules for Gifts
1. No deductions for the donor or for the recipient.
Gifts don't produce deductions for the donor or income for the recipient. And most of the time there's no gift tax, either. But if you give more than the annual exclusion amount ($12,000 for 2006 and 2007) to one person other than your spouse in a single year, you'll have some planning concerns — and a reporting obligation.
2. Recipient Doesn't Report Income
Gifts you receive aren't considered income. It doesn't matter how large they are. You don't report them on your income tax return in any way. There are a couple of important qualifications on this simple rule:
True gifts. This rule applies only to true gifts. You can't avoid paying income tax by calling something a gift when it isn't. For example, a "gift" you receive in exchange for services or some other consideration isn't a gift.
Income after gift. If you receive a gift of property that produces income, you must report any income produced after the gift. For example, if you receive stock as a gift, you must report any dividends paid on that stock after the gift.
3.Gift Tax
Although there's no income tax on gifts, there is such a thing as a gift tax. The gift tax is imposed on the donor. The person receiving the gift does not have to pay this tax. Most people don't have to worry about this tax because it generally doesn't apply until you make gifts exceeding annual exclusion amount to one person within a single year.
4. The Annual Exclusion
The annual exclusion is adjusted for inflation and applies to each person every year. The amount for 2006 and 2007 is $12,000.
Example: On December 31 you give $10,000 to your son and $10,000 to your son's wife. On January 1 (the next day) you give another $10,000 to your son and another $10,000 to your son's wife. If you made no other gifts to your son or his wife during these two years, all of the gifts are covered by the annual exclusion.
If you're married, your spouse can also make the gifts described in the example. You and your spouse each have your own annual exclusion amount, even if you file joint federal income tax returns.
Expections: There is an unlimited exclusion for gifts to your spouse. (An annual limit applies if your spouse is not a U.S. citizen.) And there's an unlimited exclusion for the payment of medical expenses or educational costs, provided you make these payments directly to the service provider or educational institution.
Giving More Than the Annual Exclusion Amount
If you give more than the annual exclusion amount to one person in a single year you'll have to file a gift tax return. But you still won't have to pay gift tax unless you have given a very large amount. The rules let you give a substantial amount during your lifetime without ever paying a gift tax. As of 2006 the amount is $1,000,000. You don't use up any of this amount until your gifts to one person in one year exceed the annual exclusion amount. For example, if you make a $14,000 gift in 2006, you have used up only $2,000 of your lifetime limit. Any amount you use out of your lifetime gift tax exclusion counts against the estate tax exclusion, which is $2,000,000 (for 2006 through 2008). This means that if you use $250,000 of the limit by making gifts during your lifetime, you have reduced by $250,000 the amount that can pass through your estate free of the estate tax. So you shouldn't ignore your lifetime limit even if you feel certain that your lifetime gifts will never add up to that amount. It pays to plan your gifts around the annual exclusion amount and the exclusions for educational and medical expenses wherever possible.
Check me out on the web at www.lisacartolano.com
Tax Rules for Gifts
1. No deductions for the donor or for the recipient.
Gifts don't produce deductions for the donor or income for the recipient. And most of the time there's no gift tax, either. But if you give more than the annual exclusion amount ($12,000 for 2006 and 2007) to one person other than your spouse in a single year, you'll have some planning concerns — and a reporting obligation.
2. Recipient Doesn't Report Income
Gifts you receive aren't considered income. It doesn't matter how large they are. You don't report them on your income tax return in any way. There are a couple of important qualifications on this simple rule:
True gifts. This rule applies only to true gifts. You can't avoid paying income tax by calling something a gift when it isn't. For example, a "gift" you receive in exchange for services or some other consideration isn't a gift.
Income after gift. If you receive a gift of property that produces income, you must report any income produced after the gift. For example, if you receive stock as a gift, you must report any dividends paid on that stock after the gift.
3.Gift Tax
Although there's no income tax on gifts, there is such a thing as a gift tax. The gift tax is imposed on the donor. The person receiving the gift does not have to pay this tax. Most people don't have to worry about this tax because it generally doesn't apply until you make gifts exceeding annual exclusion amount to one person within a single year.
4. The Annual Exclusion
The annual exclusion is adjusted for inflation and applies to each person every year. The amount for 2006 and 2007 is $12,000.
Example: On December 31 you give $10,000 to your son and $10,000 to your son's wife. On January 1 (the next day) you give another $10,000 to your son and another $10,000 to your son's wife. If you made no other gifts to your son or his wife during these two years, all of the gifts are covered by the annual exclusion.
If you're married, your spouse can also make the gifts described in the example. You and your spouse each have your own annual exclusion amount, even if you file joint federal income tax returns.
Expections: There is an unlimited exclusion for gifts to your spouse. (An annual limit applies if your spouse is not a U.S. citizen.) And there's an unlimited exclusion for the payment of medical expenses or educational costs, provided you make these payments directly to the service provider or educational institution.
Giving More Than the Annual Exclusion Amount
If you give more than the annual exclusion amount to one person in a single year you'll have to file a gift tax return. But you still won't have to pay gift tax unless you have given a very large amount. The rules let you give a substantial amount during your lifetime without ever paying a gift tax. As of 2006 the amount is $1,000,000. You don't use up any of this amount until your gifts to one person in one year exceed the annual exclusion amount. For example, if you make a $14,000 gift in 2006, you have used up only $2,000 of your lifetime limit. Any amount you use out of your lifetime gift tax exclusion counts against the estate tax exclusion, which is $2,000,000 (for 2006 through 2008). This means that if you use $250,000 of the limit by making gifts during your lifetime, you have reduced by $250,000 the amount that can pass through your estate free of the estate tax. So you shouldn't ignore your lifetime limit even if you feel certain that your lifetime gifts will never add up to that amount. It pays to plan your gifts around the annual exclusion amount and the exclusions for educational and medical expenses wherever possible.
Check me out on the web at www.lisacartolano.com
Wednesday, June 13, 2007
Attention Oakland Unified Teachers and Employees!!
New Government Home Loan Program Allows Oakland Teachers, Administrators, and Staff Members to Buy The Best Home At The Lowest Cost!
FREE Homeowner's Class Reveals New Home Loan and Down
Payment Assistance Programs for employees of the Oakland school district who want the best interest rate and the best home loan.
Oakland — Buying a home is a complex process: Title insurance, inspections-negotiations-home loans. With over 250 types of home loans, do you know which is best for you?
Many homebuyers are finding that with the current housing market and the debate over whether interest rates will go up or down there are a lot of things to consider.
To help ensure that your home purchase is profitable and problem free, two area companies have teamed up to sponsor a class to teach you the secrets of successfully purchasing your next home.
the class, please call 1-888-766-7692, ext.90524 for a 24 hour FREE Recorded Message.
FREE Homeowner's Class Reveals New Home Loan and Down
Payment Assistance Programs for employees of the Oakland school district who want the best interest rate and the best home loan.
Oakland — Buying a home is a complex process: Title insurance, inspections-negotiations-home loans. With over 250 types of home loans, do you know which is best for you?
Many homebuyers are finding that with the current housing market and the debate over whether interest rates will go up or down there are a lot of things to consider.
To help ensure that your home purchase is profitable and problem free, two area companies have teamed up to sponsor a class to teach you the secrets of successfully purchasing your next home.
The class is presented in an information packed, 2-hour format, and held at the Prudential Realty Grand lake office in Oakland. Whether you've bought before or this is your first time, at this class you'll learn things such as:
*Is my credit good enough?
*Can I see my credit report?
*How can I get the seller to pay for my closing costs?
*Do I qualify for a low interest rate government loan?
*How can I tap into the Multiple Listing Service computers to find the best home?
the class, please call 1-888-766-7692, ext.90524 for a 24 hour FREE Recorded Message.
Monday, March 26, 2007
Are you a Bubble Sitter? The Pros and Cons
The Real Esate Market has changed a lot in the last year. There are a lot of bubble sitters out there-those who have sold and renting until it's time and those buyers who are waiting to take the plunge into home ownership.
What will prices do? The market has softened, especially for new construction. But where is the bottom? This is very hard to predict and might not work. Buying a house is not like investing in the stock market. Most of us are not trying to day trade houses. Most of us buy and sell for a reason. We are being relocated for a new job, down-sizing when kids leave home, just buying a home to live in where you can paint the walls any color you want.
What to think about if you are a bubble sitter
What will prices do? The market has softened, especially for new construction. But where is the bottom? This is very hard to predict and might not work. Buying a house is not like investing in the stock market. Most of us are not trying to day trade houses. Most of us buy and sell for a reason. We are being relocated for a new job, down-sizing when kids leave home, just buying a home to live in where you can paint the walls any color you want.
What to think about if you are a bubble sitter
What is going on in your market? What have prices been doing in the are you are looking at? How long does it really take to sell homes in that area? Knowing the facts of what is occurring in the market you are looking to buy in is crucial. Not having the facts, the acutal numbers, to compare to does you no good when making a decision.
What are interest rates like? Interest rates are still historically low. Over the last couple of months, interest rates have leveled off, but this does not mean they won't change. Buying a cheaper house with a higher interest rate will not necessarily save you money in the long run.
What are you motivations for buying? Why do you want to live in a house? This is a pretty fundamental one, but one that I think a lot of people forget about.
What is your time line? If you are thinkig of buying and living in the home for 5 years or under, you may want to see where the market goes. If you are looking to be in the home for 5 years or longer, you will be in the home long enough that these bumps in the market will even out over time.
Check me out on the web at www.lisacartolano.com
Sunday, March 11, 2007
First Time Home Buyers Seminar
DCH Realtors of Prudential
& First American Title
Present
A First Time Home Buyers Seminar
& First American Title
Present
A First Time Home Buyers Seminar
When: Thursday March 15th 2007
Start Time: 7:00 PM
Location: First American Title 1544 Webster Street Oakland, CA. Free Parking available in lot.
· Are you currently renting and are interested in buying a home? Do you wonder what you can afford or how to even get the buying process started? What is role the your Realtor?
·Find out how your Realtor can assist you in the buying process. Find out about the current Real Estate market, what loan options are available for first time home buyers and how your dream of home ownership can become reality!
·The DCH team is a dynamic group of Realtors who work at Prudential California Realty. We understand the unique position of a First Time Home Buyer. Our job is to advise you through the entire home buying process beginning with meeting with a mortgage broker, helping you find the right home, negotiate the best deal and guide you through the buying process. If you have questions about buying a home, you can contact: Robbie Diaz at 326.3900 or Lisa Cartolano at lisa.cartolano@prurealty.com.
·Greg Herman with Holmgren and Associates is a seasoned mortgage broker who has helped many First Time Home Buyer’s understand what loan products are available and which ones will work best for you and your situation.
Please RSVP: 510.213.1139 or lisa.cartolano@prurealty.com
Can’t make it to the Seminar? No problem! Just call and we can set up a time to talk about options for First Time Home Buyers in person or over the phone.
Tuesday, January 30, 2007
Bay Area Real Estate for 2007
What will 2007 be like for Bay Area Real Estate? There is a lot of speculation out there regarding this issue. 2006 was a year of adjustment for sellers and buyers alike. Prices have soften, and buyers are able to take some time to think about their purchases. Does this mean that the housing boom is over?
Sales acutally started to pick up in December of 2006 and it looks like the market in 2007 will be balanced. What this means is there are about the same number of houses on the market as there are buyers.
Sellers will need to be realist in their pricing. If you purchased a home 2 years ago in the "hot" market, you may not want to sell right now.
Buyers will need to uderstand that while they have more opportunity to find a home at a reaonable price. They also need to be reasonable in their offers. There are others out there looking to buy. Houses in coveted areas are still having multiple offer bids over the asking price.
In my opinion, the balanced market we are in is a great opportunity. Sellers with equity can move up and buyers can find a home without dealing with the frenzy of years past. It is also a fantastic time for those looking to invest in income property.
Check me out on the web at www.lisacartolano.com
Sales acutally started to pick up in December of 2006 and it looks like the market in 2007 will be balanced. What this means is there are about the same number of houses on the market as there are buyers.
Sellers will need to be realist in their pricing. If you purchased a home 2 years ago in the "hot" market, you may not want to sell right now.
Buyers will need to uderstand that while they have more opportunity to find a home at a reaonable price. They also need to be reasonable in their offers. There are others out there looking to buy. Houses in coveted areas are still having multiple offer bids over the asking price.
In my opinion, the balanced market we are in is a great opportunity. Sellers with equity can move up and buyers can find a home without dealing with the frenzy of years past. It is also a fantastic time for those looking to invest in income property.
Check me out on the web at www.lisacartolano.com
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