Friday, September 11, 2015

Buying a New Car Can Sabatoge You Buying a New Home


It seems like buying a shiny new car and purchasing a home go together. Wrong!  Buying a car may feel like a necessity, but if you are planning to buy a home, wait until after.

Buying a big ticket item on credit before buying or refinancing a house can make the difference between qualifying and not.  It will ding your credit score, lowering it 40 to 60 points.  It will increase your debt-to-income (DTI) ratio, and may knock you out of the park.

According to Kenneth Harney, Nation's Housing, "auto debt accounted for 81% of the increase in non-mortgage debt a month mortgage holders over the past 4 years".

While buying a new car makes you feel financially successful, in reality owning a home is one of the best financial decision you can make. You have to have somewhere to live and the benefits of owning your home usually include tax deductions that you don't get with a car. 

Before buying a car, know that your DTI ratios are an important part of mortgage underwriting and are stricter and less flexible than they were a decade ago.   Keeping your DTI ratios below 45%, with a maximum 50% for FHA,  is important for obtaining a home loan.

So before buying a car or big ticket items on credit, consider what it will do to your DTI ratio and credit scores.  

Virginia Hall
Keller Williams Realty

Tuesday, June 30, 2015

The Monster in the Room: 4 Tips to Rid Your Home of Odors Before Putting it on the Market


Buying a home involves all your senses, including your sense of smell, which is one of strongest. Buyers want to smell clean or simple scents.  However, when a seller puts their home on the market, they have grown accustom to many of the stale odors that inhabit their homes. Telling someone that their home smells can be one of the hardest problems to address.

However, a 2013 Canadian Study showed that Smoking in the home can reduce the home value up to 29%.  Most odors arise from bacteria attaching themselves to walls, carpets, draperies, and ceilings.  Before putting your home on the market, here are 4 Tips to rid your home of odors:

  • GENERALLY. Clean, Clean, Clean.  Identify the source of the odor and eliminate it.  Open windows.  Change air filters regularly.   Lemon peels in the garage disposal.  Simple scents, like fabric softeners between clothes.  Plug-in deodorizers on mild. Overwhelming fragrances can be just as pungent.  Do laundry often to avoid dirty clothes piling up.  You may want to invest in a air purifier or try a do-it-yourself nontoxic fogger like DynoFresh.   
  • SMOKE.   While smoke attaches itself to almost everything, you will need to professionally clean all surfaces, drapes, walls, and paint with a sealing paint such as Kilzs.   Smokers need to smoke outside in an open area away from the house, and don't forget to empty ashtrays.   Some other tips can be found at 6 Tips to Get Rid of the Cigarette Smoke Smell.                                                               
  • PET ODORS.  Bathe pets at least weekly while your home is for sale. Anywhere a pet sits needs to be cleaned.  Professionally shampoo the carpet and fabric furniture using a pet odor treatment. Clean the cat litter box and pick up dog mess daily using an air tight bags in the outside trash.  Throw out those old raggedy pet toys.                                                                       
  • FOOD.  Empty trash every morning.  Avoid cooking strong-smelling foods such as fish, broccoli, garlic, etc.  Clean refrigerator out often.  Open a window and use the stove fan when cooking.     

The most important thing is to remember is that buyers want to smell CLEAN.  Breath new life into your home.  Get rid of the Monster in the room.

Saturday, November 29, 2014

Rent Just Keeps Going Up--Rent vs Buying a Home

Rent just keeps going up.  At what point, is it a better financial decision to buy?  Take a look at this Rent versus Buy Calculator found on the Business Section of the NewYork Times. This will give you an idea of the costs of renting compared to what you might be paying to buy a home. 
Before buying a home,  people consider many things.  Most importantly are the finances. Will I be able to afford it?  What if I lose my job?   Both important questions.   
How can I find out what I can afford?   While this Rent versus Buy calculator, gives you an idea of what you might be able to afford in a mortgage, it is important to talk to a lender, who compares your income to debt ratio to know what you can get qualified for in a home loan.   Even if you are not quite there, lenders can help you see where you are at and where you need to be.  
Many buyers worry, What if I lose my job?  However, realistically this will be a concern even if you rent.  You would have to do the same thing if you rent or own.  You use savings, borrow from family, you get unemployment or work hard to find another job. Landlords, like bankers, won't let you go months without paying the rent.  Most lenders look at your past two years of employment.   
With rents continuing to climb, this Rent versus Buy Calculator can help you determine the right time to buy and the cost of waiting or missing out.  

Written by Virginia Hall ● Keller Williams Realty ● (619)258-8585

Monday, August 18, 2014

Mission Martinique Condominium Complex in West Santee



Looking for a condominium that has a garage, patio, safe neighborhood, with great schools? Look no further.  The well maintained Mission Martinique condominium complex is located off Mission Gorge Rd. and  Crossway Ct. or Caribbean Way, in the west end of Santee.  The popular 88 unit complex was built in 1985 and qualifies for both FHA and VA financing.  The complex has 22 buildings with 4 units in each building.    67% of the units are owner occupied.  Only about 4 to 5 homes sell a year on average in the complex.   
The cozy homes have 2 and 3 bedrooms with 1.5 to 2 bathrooms.  The square footage ranges from 908 to 1,086.  The townhomes and single story downstairs units have enclosed patios and the single story upstairs units have a balcony.   

Each unit has a laundry closet inside, as well as a one car garage and along with an additional assigned parking space.  Additional limited visitor parking is available where marked for up to 48hrs.   Additional leased parking spaces are available near the pool area off of Crossway Court, marked in yellow as “reserved”, for an addition $25/month.  

The complex is located not far from the Mission Trails and Big Rock Park, minutes to the 52 and 125 freeways and Town Center shopping.  
  
The HOA dues presently run $255 and cover exterior maintenance, exterior Building Maintenance, Limited Insurance, and trash pickup.   The fenced community pool is centrally located. 

A five member board directors elected annually governs the 88 unit complex with the help of the property manager Professional HOA Consultants (619) 229-0044.   Board Meetings are held on the fourth Tuesday of each month at 5:30 p.m. in Suite C of the Professional HOA Consultants office. 


For more information about the complex you visit their website at http://www.phoac.com/mission/News.htm. 

Looking for a unit to buy, see featured listing on my website VirginiaHall.com or the 8765 Crossway Ct #79 Virtual Tour .
Written by Virginia Hall ● Keller Williams Realty ● (619)258-8585

Tuesday, October 29, 2013

Search for Homes on Your Phone


Remember the days when you flipped open a cell phone and all you did was talk. Now apps have taken over your phone screen. Exciting advances are taking place! If you are like many, multiple App icons cover your phone screen. Apps that can take your pulse, tell you where to eat, provide you with fun and games, enable you to search encylopedias, and even tells you the weather. Just about anything you can think of seems to have found a place on your phone screen.

One of the newest categories of apps includes those that will help you find homes for sale or rent, showing a map of the properties and all the details. As phone apps pour onto the market, apps for the home buyer and seller have emerged. Many of the big home search engines and bigger brokerages have designed apps to help people find properties for sale.

Keller Williams Realty has come up with a free app that is easy to download and use on any smart phone. It will locate homes for sale of rent nearby. Curious what homes are running on your street? With your QR Reader app, scan the QR code above or click on the KW Realty Mobile website or on your KW Realty website; then follow the simple directions. You simply download the free KW Realty app from your Google Play or App Store on your smart phone and start checking out home prices in your area.




Virginia Hall
CRS, ABR, CNE, GRI, SFR, e-Pro
Keller Williams Realty
(619)258-8585

Saturday, April 13, 2013

The 5 Senses of Selling Successfully


When buyers walk into a home for sale, they are using all five senses to decide if they like the home or not. Here are tips on how to help your home stand out.

  • Sight. Front yards should be green and well trimmed. If no flowers are blooming, add a pot of colorful flowers near the front door. Of course Decluttering is the biggest potential do-it-yourself return on the resale, up to $2000 or more on the sales price. Well lit rooms staged with minimal furniture and neutral wall colors, can be livened up with colorful accessories such as pillows, candles, and artwork. Display fresh flowers throughout the house, Add color pops with bowls of lemons, red apples, pomegranates in the kitchen and dining room.

  • Sound. Play soft easy listening type music, jazz or classical your choice, throughout the house.

  • Taste. A plate of freshly baked cookies or chocolates, along with coffee or tea can entice the buyers to sit down awhile to enjoy the home more.

  • Smell. Natural aromas of freshly baked cookies, flowers, lemons will enhance the experience of the walking through the home. Other ideas include baking applies with brown sugar at 375 degrees for 30 minutes or warming apple cider with cinnamon sticks. Litter boxes must be cleaned daily and before showings.

  • Feel. Soft towels, fine linens, textured accent pillows, smooth clean counter tops, all add a touch of luxury to the experience.

Unknowingly to many buyers, they use all of their senses while viewing homes. So by adding a few of these simple tips, you will present a winning home.


By Virginia Hall, CRS, ABR, CNE, SFR, GRI, ePro
Keller Williams Realty
(619)258-8585

Monday, November 26, 2012

Home Sellers Don't Get Burned--Choose the Right Buyers

"What do you mean they can't get the loan?"  the seller asked.  "We've been waiting for 17 days and we are just finding out?"

Even though the buyer had worked all his life except for one year, because of a case of discrimination and a lawsuit, the lender turned down the buyer's loan.  Even though it happened two years ago, the underwriter said that this would increase the interest rate on his loan making his monthly payments unaffordable.    Everyone was very disappointed.

There are some situations that sellers and agents just can't anticipate.  However, in most cases there are several ways the seller's agent can protect the seller from entering into escrow with an unqualified buyer, losing valuable marketing time and making other buyers wonder why has the home sat on the market so long and what is wrong it. 

  • Motivation.  Know the buyer's motivation.  One that is relocating for a job, is stronger than a buyer buying a second home.  The family out growing their condominium is stronger than the one who is renting and thinks it is a good time to own.
  • Proof of Funds.  Before an offer is accepted, the buyers should be required to submit a recent bank statement showing that they do indeed have the money for the deposits and closing costs.  
  • Loan Prequalification or Preapproval?  The seller's agent should contact the buyer's loan officer to verify that they have actually reviewed the application, bank records, and paystubs.
  • Appraisal Contingency.  The buyer's loan also depends on the property appraising at the price offered.  If it appraises higher than the accepted offer, there is no problem.  However, in this market, appraisers are still appraising conservatively based on comparable sales in the area.   On occasion, appraisers may come from out of the area and not know every comparable sale.  So it is very important that the agents provide the appraiser with the best solid comparable home sales to support the price. 
  • Higher Offer Trap.  At this time, many sellers are receiving multiple offers.  Some buyers will offer above the fair market value in order to get their offer accepted, knowing they will renegotiate the price if the appraisal comes in lower.  If the seller does not want to renegotiate the price, they still have to share the appraisal with the next buyer.  So make sure that you have strong comparable home sales and the strongest, most motivated buyer with a fair price or money to renegotiate with.        
So the moral of the story is look a little further than the price and terms on the purchase agreement.  Make sure the buyer can indeed fullfill their offer so no one gets burned.  

Virginia Hall
ABR, CRS, CNE, SFR, ePro, GRI
Keller Williams Realty
DRE #01409760
(619)258-8585

Friday, October 19, 2012

Mortage Rates Analysis For The Week of 10-19-2012-

The 30 year rate fell from 3.39 to 3.37 this week. Last weeks rates where moving in the opposite direction.

The 15 year dropped from 2.70 to 2.66. The 5 and 1 year arms rose from 2.73 to 2.75 (5 year arm) and 2.59 to 2.60 (1 year arm). Below are rates from the weeks from Sep 27, 2012 to Oct 18, 2012

Oct 18, 2012
30-fixed 3.37 15-fixed 2.66 5 ARM 2.75 1 ARM 2.60

Oct 11, 2012
30-fixed 3.39 15-fixed 2.70 5 ARM 2.73 1 ARM 2.59

Oct 04, 2012
30-fixed 3.36 15-fixed 2.69 5 ARM 2.72 1 ARM 2.57

Sep 27, 2012
30-fixed 2.71 15-fixed 2.71 5 ARM 2.60 1 ARM 2.60

Sep 27, 2012
30-fixed 3.40 15-fixed 3.40 5 ARM 2.73 1 ARM 2.73

Apr 19, 2012
30-fixed 3.90 15-fixed 3.13 5 ARM 2.78 1 ARM 2.81

So now that we have looked at rates lets look at actual mortgage payments. We took current rates and translated them into a mortgage payment for a 200k mortgage. We also did the same thing with rates from October, 04 2012 and rates from April, 19 2012

Oct 18
30-year $883.63
15-year $1348.69
5-year ARM $816.48
1-year ARM $800.67

Oct 04
30-year $882.53
15-year $1351.54
5-year ARM $813.3
1-year ARM $797.53

Apr 19
30-year $943.33
15-year $1393.7
5-year ARM $819.66
1-year ARM $822.85

So compared to two weeks ago the payment for a 200k mortgage has rose by -0.12 percent or $-1.1 a month. And compared to 6 months ago the payment for a 200k mortgage has dropped by 6.32 percent or $59.7 a month


Article by Tom Miller

Saturday, August 18, 2012

ObamaCare's New Home Seller Tax

"So when I sell my home, do I have to pay a new tax?" This is the question on every home sellers' mind since news of the Affordable Health Care Act of 2010 broke. 

According to the California Association of Realtors, beginning January 1, 2013, a new tax sometimes referred to as the "Medicare Tax" will take effect.  Part of the Affordable Health Care Act of 2010, includes this new 3.8% tax on sellers that have an adjusted gross income of more than $200,000 (for a single person), $250,000 (for couples filing jointly), and $125,000 (couples filing separately). 

Because this is a complicated tax law and will impact investor's differently, for the purpose of this blog, I will only be addressing home owners selling their principal residence with gains greater than the normal sellers' tax exemptions ($500,000 for married couples and $250,000 for individuals).   To help you understand, I am including an example from The 3.8% Tax Real Estate Scenarios & Examples Brochure, written by the California Association of Realtors (CAR): 

John and Mary sold their principal residence and realized a gain of $525,000. They have $325,000 Adjusted Gross Income (before adding taxable gain)."

The tax applies as follows:
     AGI Before Taxable Gain $325,000

     Gain on Sale of Residence $525,000

     Taxable Gain (Added to AGI) $25,000 ($525,000 – $500,000)

     New AGI $350,000 ($325,000 + $25,000 taxable gain)

     Excess of AGI over $250,000 $100,000 ($350,000 – $250,000)

     Lesser Amount (Taxable) $25,000 (Taxable gain)

     Tax Due $950 ($25,000 x 0.038)

NOTE:  If John and Mary had a gain of less than $500,000 on the sale of their residence, none of that gain would be subject to the 3.8% tax. Whether they paid the 3.8% tax would depend on the other components of their $325,000 AGI.

With this new tax, I recommend sellers talk to their accountants to verify their liabilities, because each home seller has different circumstances that may impact their tax rates when selling their home.  

Written by Virginia Hall
                ABR, CRS, e-Pro, GRI, SFR
                Coldwell Banker Residential Brokerage
                DRE Lic 01409760
                        www.VirginiaHall.com
                Virginia@VirginiaHall.com
                Direct (619)258-8585

               

     

Thursday, August 2, 2012

Home Seller's Tip--Unwelcomed Summer House Guests

Right on time as usual, I hustled into my listing to prepare for my Open House.  The home was spotless.  Background music played softly and the air conditioning cooled the house, blocking out the summer heat.   After setting down my briefcase next to a chair, I set the plate of freshly baked cookies on the kitchen counter, just before a couple walked in.. 

I introduced myself to the man and woman, before showing them around.  As we walked past the kitchen I offered a cookie.  They thanked me, but had just eaten.  They spent the next 15 minutes looking around the house and chatting about buying a home in the future.   While they said they had just started looking, I had made a connection and would followup.

Now I prepared to settle in for the next two hours, I opened my laptop on the kitchen table and glanced in the direction of the kitchen when I noticed a straight black line of ants crawling across the ceiling, down the corner of the wall and across the counter straight to the cookies.  To my horror, the ants swarmed over the chocolate chips cookies.  Any moment I expected them to lift the plate of cookies and run off with them.  I jumped up in a panic trying to decide what to do.  I thought of a Yogi Bear cartoon where the ants carried away the picnic basket. I quickly slid the ant covered cookies into the trash and tied the plastic bag tightly.  I didn't want any get-a-ways.  Then I headed after the rest with several wet paper towels.   The last thing I wanted in a closed up home was ode de ant spray. But I had to stop the flow of ants.  So I grabbed a can of ant spray from under the sink and sprayed lightly at where it looked like the ants were coming from. 

Thank goodness no one walked in those 15 minutes.  I let the sellers know, that they needed to either spray themselves or hire a pest control company to rid the house of ants.  

While it is not uncommon to see bugs during the summer with the heat, it is important that homes for sale be kept bug free.    Also during the summer trash, cat boxes, and the laundry should be emptied each day to avoid odors.  You want your home to smell as good as it looks.

Written by Virginia Hall
                  ABR, CRS, E-Pro, GRI, SFR 
                  Direct: (619)258-8585
                  Email:Virginia@VirginiaHall.com
                  www.VirginiaHall.com
         

Wednesday, July 18, 2012

Selecting the Best Home Buyer's Representative

In a recent blog,The Slippery Slope of Dual Agency, someone asked about how to select a Home Buyer's Representative? Once you decide to buy, it is important that you pick someone that is honest, trustworthy, and has your best interest at heart to help you. Meeting the representative and discussing the process is one way to select the best person for you.  Here are some criterias and questions to keep in mind when selecting the one:

Experience and Credentials. How long has the representative been in business? Is the agent a Realtor®? What professional organizations do they belong to? What other credentials or designations (ie. Accredited Buyer's Representative) do they hold?

Knowledge.What areas and neighborhoods do they work in? What types of property sales do they specialize in (residential, commercial, land)?

References. Ask about contacting previous clients for referrals. You may want to Google the Realtor®.

Representation. Ask the Representative to explain the definition of each agency and what is meant by fiduciary duties. Do they do dual agency?

Services Provided. Ask what type of services they offer? Do they use a written buyer representation agreements, detailing the obligations of the buyer and the Representative? It is important to have a clear understanding of what you expect out of them and what they expect out of you. Do they listen? Will they refer related service-providers such as lenders and home inspectors? Will they respond to your phone calls and emails within a certain time frame or at certain blocks of time in the day? Will you be dealing with the Representative or their assistant/Transaction Coordinator after the initial contract is accepted?

Finding Properties.  How will they assist you in finding homes? Some buyers like to look at all of the inventory, while others prefer the agent screens the homes narrowing down those they actually look at.
Do they have access to the full Multiple Listing Services? Will they set you up Internet homes searches?     When are they available to show you homes?

Negotiations. Will they educate you on the strategies of what to negotiate on, as well what contingencies will need to be released and when?

Compensation.  Most buyer's representative are compensated by the seller as part of the multiple listing agreement. However, it is always good to discuss other upfront costs you will expected to pay (ie. good faith deposit, home inspections, appraisals).  
While the Representative may not have perfect answers to every question, meeting them and discussing the process helps you in selecting a Home Buyer's Representative that you will have confidence in and trust to guide you through the process with your best interest at heart. 

Written by Virginia Hall
ABR®, CRS®, e-Pro, GRI®, SFR
Coldwell Banker Residential Brokerage
VirginiaHall.com
Direct (619)258-8585
DRE#01409760

Friday, July 6, 2012

How attractive is My Neighborhood to Renters/Buyers?

When you are entering the rental or realty market, you’re not just relying on the viability of your house – you’re relying on the viability of the neighborhood it resides in as well. A neighborhood can make or break an investment. However, sometimes you can accommodate to the setting and make it work. You’ll first need to understand what makes a neighborhood appealing to renters/buyers and what drives them away.

Location and Knowing Your Market

While some locations may seem obvious to avoid, such as neighborhoods known for violence or drug trafficking, etc., others might not be such a clear choice. A lot of what the broad amount potential renter or homeowner is looking for, aside from a nice house to live in, is convenience.

If a neighborhood is on the outskirts of town or in the boonies, it will likely lose a lot of appeal. Being far away means it takes extra effort to get into town, to work, to school, or anywhere else the person may need to get to. There are some people who enjoy being far removed and like to live more independently, but appealing to these people may prove to be a more difficult endeavor as it really narrows your market.

Schools, Shopping, Attractions, and Transportation

Going along with the idea of convenience, easy access to essential commodities and institutions can affect the value of your investment property. Aside from poor locations deterring potential buyers and renters, a great location can bring them in.

Families in particular enjoy being close to schools, this way they do not need to worry as much about getting their kids to school. A home in a highly regarded school district is also a huge bonus. Many families will opt to spend more to live in a community with a better school district.

Local landmarks can also sway buyers and renters as well. Being in a close vicinity to shopping centers, hospitals, and other services all appeal typically to renters/buyer, knowing these resources are easily viable when they need them. Being close to a bus, transit line, or local carpool is also a great selling point for commuters.

Safety

Perhaps one of the strongest factors in the house seeking equation is how safe a person will feel living in the area. As aforementioned, if an area is clearly violent and riddled with drug dealers then they are less likely to find the house as an option. There are, however, even more practical things to consider. How safe would someone feel walking from their car to their front door at night in this area? Is there a lot of theft in the area? Would you then need to install a security system?

Buying an investment property in a generally hostile or sketchy environment can be a big financial mistake. Unless you have some sort of long term plan and see the area changing in the relatively near future, this generally should be avoided. If the area is crime ridden, you’re likely going to get more applicants with less-than-desirable backgrounds which will make the tenant seeking process even more frustrating and time consuming.

How to Compensate for “Non-Premium” Neighborhoods

For those hosting homes or apartments in less than desirable areas, there are things you can do to make it more appealing to the masses. The biggest and best thing is to adjust the price accordingly. For those living on a budget, it makes more sense to prioritize necessity of convenience.

Offering amenities such as pool and/or gym access, in unit washer and dryers, and others extra options can greatly raise the appeal. Also investing in the property itself can be a huge help. Making sure all appliances are up-to-date, putting in new carpets or hardwood floor, and a fresh coat of paint can also give renters and buyers assurance with the property.

About the Author

Dusty Henry is a writer and editor at All Property Management. As one of the most expansive directories and collections of property managers on the Internet, All Property Management http://www.allpropertymanagement.com/serves as a tool to connect property owners with the right rental manager for them.