Posts Tagged ‘for sale’

Home Warranty Companies-What Do They Do?

home warranty when buying a san diego homeWhat Exactly Is A Home Warranty Company And What Do They Do?

If you’re purchasing a re-sale home in San Diego be sure to ask for a home warranty. They normally cover you, the home buyer for one full year. Companies like American Home Warranty, Old Republic, and First American Buyer’s Protection are some of the more common ones.

Home Warranty programs are normally paid by the seller. They cover most mechanical systems in a home. They cost from $300.00 to $800.00 depending on the size of the home, options such as a pool/spa, and the company. Most will have a service call fee of around $30.00 to $60.00 per visit.  Home warranties don’t cover structural issues and should never be used in lieu of getting a professional home inspection.

Home Warranties benefit home sellers as well because it reduces their post-sale liability. At times, disputes arise when something goes wrong after close of escrow. Rather than argue about a non-disclosure issue, the home warranty will fix the problem for a nominal fee.

Benefits for buyers include peace of mind knowing that appliances, heating systems, and plumbing are covered.  It’s nice to know there will be no unexpected expenses for that first year. Let’s say your garbage disposal stops working a month after moving into your new home. Instead of paying for a new one along with installation, for the cost of a service call, you now have a brand new one installed!

Home Warranty options can include the following (depending on the plan):

  • Refrigerator – normally considered personal property unless a built-in like a Sub-Zero.
  • Washer & dryers.
  • Roof leaks (Limited)
  • Garage door openers – some provided in upgraded coverage.
  • Pool and spa.
  • Central air conditioning.

The basic warranty plan is normally around $350.00 for a standard size home.  Options run around $150.00 for pool and spa coverage, $75 for washer and dryer, $25 for refrigerator, and central air conditioning around $60.00.  Each company is different, however.

Check the fine print on each Home Warranty Company for coverage and exclusions. Here are three that I have had satisfactory service from.

  1. American Home Shield.
  2. Old Republic Home Warranty.
  3. First American Home Buyer’s Protection.

Notice that I said only SATISFACTORY service.

Just do a Google search on Home Warranty programs to find out many customers are unhappy. This is likely from higher expectations of coverage and the various sub-contractors that the services use.  Sometimes you get lucky, other times you don’t.

For more information on this topic:

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

Quick Tips For Pricing Your Home

determining an asking price for my homeWhen it comes time to sell your home, setting a realistic selling price is extremely important. Price it to low, and you may be leaving money on the table, despite getting extra interest from buyers. Price it too high, and your home risks becoming a “stale listing,” as it sits on the market with little interest.

· Consider nearby comparables. What have other similar homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?

· Consider the competition. How many other houses are for sale in your area? Are you competing against new homes?

· Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in a few months instead of a few weeks?

· Get an appraisal. For $400-500, a licensed appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (www.appraisalinstitute.org) or ask your REALTOR® for some recommendations.

· Be accurate. Studies show that homes priced more than 3% over the correct (market) price take longer to sell.

· Know what you’ll take. It’s critical to know what minimum price you’ll accept before beginning a negotiation with a buyer. Of course, there could be other terms on the offer that may change this number. Your agent can guide you further on this during contract negotiations.

 

For more information on this topic:

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

 

Don’t Stress Out When Buying A Home

Buying a home can actually be fun, not stressful. As you look for your dream home, keep in mindno stress these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a huge financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Just remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to time interest rates or the housing market by waiting longer — you risk losing out on a home you love. The housing market usually doesn’t change fast enough to make that much difference in price, however, a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it even harder to make a decision. Focus on the wants and needs of your immediate family — the people who will actually be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, but perhaps the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs some repairs. Make a list of your top priorities and focus in on things that are most important to you. Don’t sweat the minor ones.

don't stress out when buying a home5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to get that extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in all the physical aspects of the house itself — room sizes, kitchen, etc. — that you forget about important issues such as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Making an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. Preparation goes a long way.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and not be able to afford upkeep.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a huge financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you bought.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4% annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live first, an investment second.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

This is why Housing Sales Matter to our Economy

In a study by the National Association of Realtors (NAR) to determine the impact a single home sale has on the economy. They included data compiled by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard. After reviewing the information, they determined the total economic impact of a typical home sale in the United States is an astonishing $56,464!

This figure contributed economically to things such as home construction, real estate brokerages, mortgage lending, title insurance, rental & leasing, home appraisals, and moving truck services.

When a House is Sold in the United States:

$14,958 – Income generated from real estate related industries

Home sales turn into money for the economy

$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service

$3,509 – Expenditure on remodeling within 2 years of purchase

It also generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be:$11,575

Home sales induce additional new homes being built. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be:$20,775

This study was done on a national level, where home prices and the cost of living is less than in southern California. San Diego home prices are also well more than double the national average. While the above figures only cover nationally average numbers to come up with $56,464, the economic impact for a place like San Diego would be far more!

 

For more information on this topic:

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

San Diego Housing Market Update August 2014

The end of summer is here and inventory levels (the number of homes on the market “actively” for sale) continues to climb. This San Diego housing market update shows there are currently 8350 active listings in San Diego county, up slightly from 8295 last month.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One year change in homes for sale

-23.7%

8.3%

-4.8%

How's the market 2According to Bankrate.com, interest rates are currently at 4.20% 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 8.3% increase in median prices, compared to over 20% a few months earlier. However, these higher prices are now resulting in a slow-down of the number of homes sold over 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 House Market Stats August 2014

Click for full size

For more information on this topic:

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

Things To Know Before Buying A House

Purchasing a home can be confusing, overwhelming and make buyers feel completely broke by the time they get the keys. However, being freed from a landlord and throwing away rent payments can also be extremely liberating. From finding the best Realtor to making it through a bidding war, here are 10 things homeowners wish they knew about taking the big step into being a homeowner.

1. Get pre-approved first.

It might be tempting to start hitting open houses every Sunday, but before beginning your search, get pre-approval letter for a mortgage. The last thing you want it to fall in love with a place before being prepared and able to put offer in on it. Without this pre-approval letter, no seller will take you seriously as a pre-qualified buyer.things to know before buying a house

Research recommendations on trustworthy mortgage brokers, then set up a time to talk with each one. If they won’t provide firm information about their rates and fees, or if they start giving advice before fully understanding your financial situation, keep searching. Any good loan officer will save time and money by researching loan terms and rates that work in your best interest

2. Work with an experienced agent.

Before buying a house, going through online listings is a great start. However, don’t underestimate the value of working with an experienced real estate agent. They will help navigate the confusing process of buying a home, and once you find a place you love, they can research comparable listings, advise on what your opening offer should be and negotiate for you. And since home sellers pay all broker commissions, having an agent represent you as a buyer is FREE!

To find the best one, make a short list of possible agents based on word-of-mouth recommendations and/or internet research. Then meet with them to get a feel for their personality and their knowledge on the neighborhoods.

If you are new to the home buying process, stick with a buyer’s agent. They will negotiate, point out any problems with the house that they see, and handle potential issues whenever possible.

3. Don’t be turned off by an ugly bathroom.

A funky paint color or outdated design can cause a buyer to overlook a home that’s otherwise has tons of potential. Remember, cosmetic changes are easy to make once move in, and pointing out any dated features can actually help the negotiation process.

Instead of focusing on the pink-tiled bathroom or that ugly light fixture, pay more attention to the layout of the property, the view, the amount of sunlight rooms get, ceiling height, outdoor space and of course, the location.

4. Find out about the neighbors.

Once you find a home you love, walk the neighborhood to make sure it will be a livable situation. It also helps to visit the neighborhood at different times of the day and week to get a better feel of what life there is really like. Talk to neighbors and get their take on the area as well.

5. Be prepared to move fast.

The best properties receive multiple offers after the first open house, so it’s possible to miss the chance to submit an offer. Your agent will include your pre-approval letter in the offer so the seller knows it is serious. If there is a lot of interest in the home, write a letter to the seller explaining why you’d be the best next owner. You can even included a picture of your and your family. This is also referred to as a “seller love letter” and can work wonders to getting your offer accepted.

6. Be careful about overbidding.

If you plan on financing your home and get caught in a bidding war, beware that overbidding can come back to bite you. Your bank will require an appraisal of the home. If the appraisal comes in under the amount of the loan you need, you might have to make up the difference in out-of-pocket cash in order to complete the deal. Before you make an offer, research comparable listings or ask your real estate agent for advice. If you can, consider increasing your down payment instead of going up higher in price. Cash is king, so putting more money down can give your offer an edge over other buyers.

what to expect when buying a home7. Expect a ton of paperwork.

When applying for a loan, be ready to provide a ton of paperwork, including tax returns, pay stubs and proof of your current assets. You may also be asked to provide updated information on some of the same documents right before closing. This is not the best time to switch jobs or buy a new car, since your income and credit will be closely scrutinized.

8. Hire a home inspector.

Protect yourself and hire a professional inspector to look over the home before you compete the purchase. For $300-400, their inspection will help expose potential problems that could cause you problems and a ton of money down the road. A good inspector will attend to seemingly insignificant details. It also provides a negotiation point to ask the seller for any repairs to be made at their expense.

9. Expect to feel like you are hemorrhaging money.

It’s surprising how quickly costs add up. Fees of $200 here, and $150 there can be unexpected. Besides the down payment, there is the deposit, appraisal fee, home inspection, moving, and more expenses besides the actual buying price. Additionally, most lenders ask that a buyer has enough to cover at least two mortgage payments after closing, which means there needs to be cash in the bank. Go over all of the closing costs with your lender and agent to avoid surprises.

10. It will feel like it will never happen.

Buying a home is not easy. Finding a great place to live takes time, and once you find it, you can easily get outbid. Just remember that new listings are always coming onto the market and, eventually, there will be something you love.

For more information on this topic:

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