10 Top Things Home Buyers Want in a Neighborhood

To find homes for sale in your area, visit www.BetancourtRealEstateGroup.com or email us for a no-cost home value report. 

Why is An Appraisal ordered?

by Yvette Betancourt

An appraisal can be ordered for many reasons. See the top four reasons why an appraisal is ordered on a property. 

Interest Rates Will Continue to be Low Until Unemployment Drops

Fed Chariman Ben Bernanke

by Yvette Betancourt

As the end of the year comes near (according the Mayans, it's the end today), the Feds made the decision to continue to curb interest rates low as long as the unemployment rate remains above the 6.5 percent.

Sounds good right? but for how long?

Unemployment rate is estimated to drop below 6.5 until 2015 according the Feds.  sounds like 2013 and 2014 will be a the best time to get into the market for buyers, sellers and real estate investors.

So as we anticipate the decision of the "Fiscal cliff," government is doing their best to make sure the 2012 real estate market gain will continue to grow into 2013 and beyond.

Source: AGBeat

Is California shifting from a Buyers Market to a Sellers Market?

by Yvette Betancourt

According the C.A.R (California Association of Realtors®),  homes that have been priced right and the record-low interest rates are making the market competitive that six out of ten homes are receiving multiple offers.  

In 2012, 57% of homes sales were in a multiple offer situation that included lower priced homes and  distressed properties (bank-owned real estate REO, short sales, etc.).  These properties had more multiple offers than market sales. 

The multiple offer has led homes to be higher home sales than the originally asking price.   Also, homes are also sold faster than market sales taking about 32 days compared to the average of 67 days in 2011.  REOs are sold in 30 days than the 50 days average of last year! Short Sales market days has not change due the complexity of the short sale process but the average of days are 90 days than 141 days from last year.  

My question is, who is the buyer? Are they cash investors or future home owners?

In 2012, a third of homebuyers paid with all cash and 16% of buyer bought for investments purposes.  International buyers are making up 5.8 percent of buyers with the largest group of buyers coming from China, Canada, India and Mexico. 

The good news is that 77% of buyers are purchasing a primary residence that include 40% of first time home buyers.  Most first time home buyers are purchasing REO property or a short sale.  

Due to the current tight lending, few buyers have a second mortgage.  In 2006, 43.4 percent of home sales were bought with second mortgage. In 2012, 1.8 percent. What a big difference.  

The fierce market conditions have forced buyers to complete with all-cash offers and investors and making it difficult for first-time buyers to become homeowners. 

In my current experience, homes in the San Fernando Vally that are under $450,000 have been in a multiple offer situation since February 2012.  If you are a buyer who is looking to place an offer lower than listing price, chances are your offer will be over looked due to offers at listing price or over listing price.  Yes, these properties need TLC and there are no credits for repairs however, the days of bargaining with homes, especially distressed properties are very slim.  Home buyers, please don't get discouraged! I've seen cash offers be outbid by offers with a loan. Remember, the highest purchase price and best terms will appeal to the sellers.  As for home sellers, if you need time to relocate or find a new living arrangements, add the time frame to the listing contract.  

If you have any questions, please contact me at (818) 384-5928 or email.

Source: MortgageNewsDaily.com

Top Three Features that Determines Your Home's Value

by Yvette Betancourt 

There is an Open House in the area.  A new listing.  Neighbors and home buyers walk thru the property and evaluate home's size, construction (and interior design) quality and price.  Homeowners are evaluating the home's value and home buyers being much more critical about a home value than before!  Why? Because it's the wonderful free websites like Zillow.com that offer property data that include a computer-generated valuation which aggregate sales data from comparable properties to determine an estimated price.  These estimated price is what some buyers and homeowners assume to valued numbers to submit an offer or to determine if it's the right time to put their home on the market.  

These estimated values are a great starting point to determine price except these estimations can be off as much as 10%.  This percentage can hurt you especially when a home buyer is in a multiple-offer price range to buy.  It can hurt the home seller by delaying their plans to sell and gain a good return.  

So if sites like Zillow, or any free real estate site can properly determine the value of the home, who can?  Real estate agents.  The agent's access to the local MLS has information that include number of days on the market and notes about what type of concessions were made on the sale and so on, that determined the final purchase price. 

Here are our tips to do your own comparables based on the top three features that determine your home's value.  

1) Location

Location! Location! Location! Especially when you are comparing SOLD properties.  A professional appraiser will look at homes/properties within a one-mile radius or less and that is a great tip that you should do as well.  

For subdivisons, look at the houses that are all similar and built in the same period.  Don't forget to compare similar houses with similar styles in the same subdivision. 

For homes not in a subdivision, geographic lines such as the opposite of a river, a park, a main highway/street, a school district boundary affect the home values.  

2) Size

Evaluate the square footage.   Appraisers typically look at homes that are within 20% up and down in square footage  as comparables.   In subdivision, you should look at homes that exact to the homes square footage.  

Don't make the mistake of thinking that a house that is 10% bigger will be worth more 10% more.  the extra square footage only equals o a few percentage points in value.  

3) Bedrooms and Bathrooms

The number of bathrooms and bedrooms is more relevant than simply the raw square footage.  In other words, a three bedroom home with 1,200 sq ft  might be worth more than two bedrooms with 1,250 sqft.  Also the location of the bedrooms and bathrooms.

Make sure to look at the quality and number of bedrooms and baths. For example:

House 1: Three bedrooms 1300sqft
House 2: Two bedrooms 1200sqft

Result: House 1.

House A: Four Bedroom 2500 sqft
House B: Five Bedroom 2475 sqft
House C: Three Bedroom 2450 sqft

Result: House C.  The square footage is similar and the value isn't a drastic change as the previous example.

Let's look at bathrooms:


There are three common bathroom styles.  Full baths (shower, bath, toilet, and sink), a three-quarter bath (tub, toilet and sink), and half bath (toilet and sink).

A three-quarter or full bath are roughly the same value.  A five-piece bath doesn't add much value than a regular bathroom with a combination shower and tub.



Remember to look at pending and active homes to give you an idea of where the local market is heading.

To get a detailed home value report on your home, click here for a Free Home Value Evaluation Report.   If you are a home buyer, ask your real estate agent for a CMA or email us for a Free Property CMA.

Is Housing Shortage Causing the Increase in Home Prices?

I'm pretty sure you are hearing from everyone that the housing market is on the path to recovery. In fact, California Association of Realtors (CAR) has announced that home prices rose for the third year in the row and will continue to rise in 2013. 

With many homes being sold, there is now a shortage of homes for sale.  In Huntington Beach, a realtor  hosted an open house on a short sale which pulled in 50 people in half an hour and produced 30 offers in one day! The days of lowball offers and other demands by buyers are history (for right now) and the once described balanced market has become a seller's market.  

As we approach the holidays seasons, serious buyer will continue to look through the holidays especially with the interest rates remaining at a historical low. 


FIND OUT YOUR HOME'S VALUE

FIND HOMES FOR SALE IN YOUR AREA

Source: OCRegister.com

Home Buyers Top 10 FAQs

It's never too early to start thinking about financing, moving, and more. An offer from a well-informed buyer is more attractive than others - get the edge early! Take a look at the Top 10 Frequently Asked Questions from home buyers.