Ryan Blanco San Diego real estate agent

Home buyers-Asking For Repairs?

It is highly recommended that home buyers have a complete home inspection done before purchasing a home. But when it is all done, some buyers ask to have every little thing fixed, while others ask for almost nothing. Which home repairs should buyers ask for?

Some repairs do seem ridiculous, but having a furnace repaired so that it works again, or having a leaky pipe fixed is not so far fetched.

Making an offer on an older home and then asking to have all the windows replaced seems a bit home buyers asking for repairsover the top, and sellers will view it that way as well. Buyers have to understand a seller’s point of view when it comes to repairs. And the old adage, “if it ain’t broke, don’t fix it” actually applies pretty well in this cases.

Sometimes buyers looking for craftsman style homes built in 1910 to 1940 expect them to have modern electrical systems where all of the electrical outlets are grounded.  Sellers often have owned a home and lived in it for a couple of decades with two pronged outlets, therefore they don’t see why they need to be changed over to grounded outlets for the buyers as a priority.

There are some things that a home has to have like working plumbing or a working furnace. I personally think that if something in a home leaks, the sellers should fix it. This is especially true with indoor plumbing or gas lines. It can both cause additional damage and can be downright dangerous.

Buyers should keep in mind that sellers might not have the money needed to make repairs.  Sellers should understand that often home buyers are short on cash and can not afford to have repairs made and buy a home all at the same time. Yet buyers need to know that there will be repairs in the future and they should budget for them.

Sellers should be prepared to fix anything that comes up as a hazard (safely issue) in the home inspection report like unsafe wiring or pressure release valves that don’t work.

Sellers can say no to any repair that the buyers ask for. And buyers can cancel the purchase agreement during the inspection period and find another home, if the inspection reveals too many issues.

The point of the inspection is for the buyers to know what they are buying. It also protects the sellers somewhat, because the inspector is finding the problems that could upset the buyers if they found out after they closed on the home.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

San Diego Housing Market Update-June 2014

Summer home buying season is here and inventory levels (the number of homes on the market “actively” for sale) continues to climb. This housing market update shows there are currently 8062 active listings in San Diego county, drastically up from 7200 last month. This is the most the San Diego market has had in quite a long time.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-17.3%

10.7%

-1.0%

  How's the market 2 According to Bankrate.com, interest rates are currently at 4.19% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment, go HERE. Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 10.7% increase in median prices, compared to over 20% a few months earlier. However, even with the higher prices, homes continue to sell a a faster pace than a year ago. The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

San Diego real estate blog

Click to enlarge

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

Should You Refinance Your Home?

should you refinance your homeWith current interest rates still historically low (4.29% as of the writing of this article), you may want to refinance your home to a lower rate. Here are five questions you should answer before you take the leap:

1. How long do you plan to stay in the home?

It makes a big difference in recouping the cost of refinancing a home loan. If you don’t plan to own the home for at least 3-5 years or more after refinancing, it might not make sense to incur the costs of refinancing.

2. What are the closing or settlement costs for refinancing?

You should expect to pay about the same amount as when you purchased. Expenses will include a new title policy or abstract, a new appraisal, and lender’s fees.

Lenders normally charge an origination fee or a “discount fee”. If it’s a “no-cost” refinance, there’s really no such thing – the fee will actually be rolled into a higher interest rate. Count on your closing costs to be similar to what you paid when you originated your first loan. In other words, it’s a new loan, with all-new fees.

3. What percentage rate are you currently paying?

Mortgage lenders used to only advise refinancing only if you could save two percentage points on the loan. That’s so you can get your closing costs back if you need to sell a year or more later, assuming your home doesn’t go down in value.

But you can refinance by getting as little as 1/2 percent lower than your current mortgage interest rate and still be able to sell within a reasonable time – 3 years or so. What you need to do is figure how long it will take you to pay back your closing costs before selling your home.

You have a $200,000 mortgage, 30 yr. fixed rate, 6% interest, with a monthly payment of $1199 in principal and interest or PITI. Assuming $2,000 in closing costs, you refinance for another 30 years.

At 2 points lower, or 4% interest, your new PITI (principal and interest) is $ 954.83 With a monthly savings of $244.17, it would take you just over 8 months to pay back the cost of the refinance.

At 1/2 % of a point lower, or 5.5% interest, your PITI is $ 1135.58. With a monthly savings of about $64, it would take you a little over 31 months to break even, a good strategy if you plan to stay in your home at least 3 years.

4. What type of loan do you currently have? Do you have a hybrid adjustable rate mortgage that needs refinancing?

Many hybrid loans change from fixed rates to adjustable become adjustable after a year, three years, or five years. If you qualified for the adjustable rate loan originally, but have since increased your income or paid down your mortgage and built some equity, now may well be the time to refinance.

Interest rates have hovered near 5% or lower for well over six years, making it likely that adjustable rates have nowhere to go but up, so it may be a good time to get into a fixed rate.

5. Have your plans or circumstances changed from when you first purchased?

If you are doing well and want to accelerate your pay-off by refinancing to a 15-year term. Additional payments to principal can be voluntarily added to your 30-year fixed rate loan payment, so refinancing is only wise if you can get a much lower interest rate than your current term.

But say your intentions of paying off a 15-year note have changed, due to decreased income, family obligations or some other reason. In that case, a refinance to a 30-year term will ease your payments, but the majority of your note will be to pay interest, with little going toward your principal for several years.

Get professional advice from your mortgage banker or broker, and your financial advisor or tax preparer to help you decide if refinancing is the right answer for you now.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

Preparing Your Home For Summer

It’s June and summer is already here! But before you can enjoy some fun in the sun, there are a few things to take care of at home to get your home ready.

Here are 7 ways in preparing your home for summer.

1. Get your air conditioner ready

Cleaning your AC unit and having any necessary service will help it work at its best and highest efficiency. Get your air conditioner for summer by cleaning it. Shut itr off, and clear away leaves and yard debris outside. Inside, clean or replace filters. Dust the fan blades if you can do so safely. Make sure air can flow freely over the inside and outside coils. It is a good idea to call a professional HVAC company to inspect your unit early in the summer.

getting your home ready for summer2. Change your filters

In our warmer Southern California climate, we are on a constant search for ways to keep electric bills down. Clean, new filters work more efficiently, which can help keep cooling costs lower. It’s also good to check the door and windows for any areas that need to be sealed up. The right amount of insulation will help keep cold air in and warm air out.

3. Change the filter in your fridge too

It is also a good time to check the water filter in your refrigerator. If it’s more than 6 months old, get a new one so all that lemonade you make on sunny summer days tastes as fresh as possible.

4. Clean out your freezer

Do you really know what is in the back of your freezer? Throw out anything that’s been in there getting your home ready for summerover a year. With the extra freezer capacity, you can be stocked up on a summer supply of ice cream and popsicles.

5. Adjust your sprinklers

Your grass may need to be watered more frequently during the summer. Or perhaps we are under watering restrictions because of drought conditions. Either way, it’s time to look at the automatic sprinkler control. You don’t want to be the only house on your block with brown grass. And you don’t want to get in trouble by the water police either!

6. Change your bedding

Still sleeping with flannel sheets and a heavy-duty down comforter? It’s time to strip it down. Temperature-regulating sheets may help keep you cooler at night, which means you may be able to turn your thermostat up and save yourself money on energy bills.

7. Check the perimeter

Give the outside of your home a summer check-up by walking the perimeter of your home and property line and noting anything that needs attention. Do your outside lights need new bulbs? Any broken sprinklers? Are the gutters clogged? Have the roof flashings, caulking, and shingles inspected to ensure there are no leaks.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

San Diego Housing Market Update-May 2014

As summer approaches, inventory levels (the number of homes on the market “actively” for sale) continue to climb. This housing market update shows there are currently 7200 listings in San Diego county, up from 6600 last month. This is the most the San Diego market has had in quite a long time.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-22.10%

8.40%

-3.20%

 

How's the market 2

According to Bankrate.com, interest rates are currently at 4.17% for a 30-year fixed loan. This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment, go HERE.

Finally, as you will see on the chart below, prices are starting to take on a more normal pattern. There are much more modest changes than the previous year, with a 8.4% increase in median prices, compared to over 20% a few months earlier. However, even with the higher prices, homes continue to sell a a faster pace than a year ago.

The San Diego Association of Realtors analyses housing market date for San Diego county every month. Below is their monthly report. The figures combine both condos and townhomes, as well as single-family homes.

San Diego Housing Market May 2014

CLICK ON IMAGE TO ENLARGE

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
Visit my Website: http://ryanyourrealtor.com

FSBO Executive Uses A Realtor To Sell His Mansion

Al Bennati, the longtime chief executive of BuyOwner.com, has chosen to list his home with a local real estate agent.

BuyOwner.com is one of many websites out there now that encourage home owners that they do not need to enlist the help of a professional agent to be able to sell their home. Their website tells homeowners: “BuyOwner.com allows you to reach the most potential buyers in the shortest amount of time, in the most effective (the Internet) and most cost effective manner (no commission!) possible.”

But that has not stopped their chief executive, Al Bennati from hiring professional help in listing his own Florida mansion, now on the market. Bennati has listed an estate on St. Petersburg Beach for $3.78 million with Coldwell Banker agent Donna Miller.

for sale by ownerThis isn’t the first time that a CEO of a major FSBO website has enlisted the help of an agent when the time came to sell their own home. In August of 2011, Colby Sambrotto of forsalebyowner.com who, after failing to sell his home using FSBO websites, needed an agent to sell his NYC apartment.

Two separate people made fortunes convincing others to sell their home through their FSBO sites. Yet, when it came to selling their own home, they recognized the value of using a real estate professional. There is a reason the real estate industry has been around for centuries: it performs a valuable service!

 

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

 

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