I work a lot with buyers and I always recommend that they have a "Physical Inspection" of the property done. Buying a home is probably the biggest investment of your life and you need to know what you are buying. I know it is scary because you have been looking at tons of homes and finally got your offer accepted on your dream home. But you need to know as much about your dream home as possible to truly know if this is your dream home or a nightmare waiting to happen.
The first step is finding a reliable home inspector. You want one who is going to be affordable and thorough. You want a knowledgeable professional who will give you the honest truth. Here are some questions you should be asking when selecting a home inspector.
1. What is your experience and/or training?
2. Can you provide a sample report? You want to see how detailed the report is and what to expect.
3. What is covered and what is not. Some inspectors will not inspect pools, roofs, or appliances. You need to know this upfront.
4. What is the reinspection policy. If there are errors or omissions that come to light later will they come out an reinspect? If repairs are made will they verify the workmanship?
5. Will they provide references?
6. Do they have insurance?
You should try and be at the property when the inspection is done so that you can see exactly what the inspector is noting. Take some time to review the report. Make an informed decision to continue with the escrow and purchase the property or cancel and continue your home search. It can be a difficult decision but in the end you need to be confident you are purchasing a home that is right for you and that you know what you are purchasing.
Tuesday, May 29, 2012
Wednesday, May 23, 2012
Where Are All the For Sale Houses?
The real estate recovery has been in the news a lot lately. Many of you may be aware that the San Diego real estate market is drastically different than it was just a year ago. Previously the issue was that there were so many houses on the market and the prices were still declining. This caused many would be home buyers to sit on the fence and wait for the market to stabilize before making their purchase. Well what a difference a year makes.
Last month there were aproximately 7700 houses and condos on the market in all of San Diego county. Today there is just 6740. The combination of historically low interest rates, pent up buyer demand and investors making their move have all contributed to the decline in inventory. Right now there is actually a shortage of available properties. At the peak of the recession there was a 13 month supply of inventory, today just over a 1 month.
So what does that mean to you? Well, if you are buyer you need to be prepared for this and understand that you are going to need to be patient. New listings are not flooding the market. You are not going to have 20-30 houses to look at that meet your needs, in fact if you are in the under $250,000 range you are going to be lucky to have 5 (depending on area, size, etc). You are going to need to act quickly and not wait for the weekend to view a property and submit an offer. When a quality listing hits the market you need to be ready, meaning be prequalified for your loan and ready to make a decision. You may also have to compromise on what you are looking for or raise your price point. The days of "low balling" an offer are over. You need to understand what homes are selling for in the area and submit a competitive, clean offer at market value.
If you are a seller you should be taking advantage of the low inventory. If you are considering selling you need to get your home on the market. Why wait until the banks release more REO's or the buyers purchase a different home? You will need to be smart and understand that you still have to price the home to sell. An overpriced home will not sell no matter what the inventory or market is like. A home that is priced above market value is not going to sell. It will not appraise so the buyer will not be able to get the loan and an investor will be a savvy buyer that thinks only of the bottom line. You will also need to understand that while most areas of the county have seen a stabilization of prices, this does not mean that prices are significantly rising. The market will bounce around down here at the bottom and slowly improve. There is not going to be a sharp increase in prices which will bring you back up to where it was at the height within the next year.
If are considering buying or selling, give me a call. I will assist you in understanding what the market value of a home is and help you through the entire process.
Last month there were aproximately 7700 houses and condos on the market in all of San Diego county. Today there is just 6740. The combination of historically low interest rates, pent up buyer demand and investors making their move have all contributed to the decline in inventory. Right now there is actually a shortage of available properties. At the peak of the recession there was a 13 month supply of inventory, today just over a 1 month.
So what does that mean to you? Well, if you are buyer you need to be prepared for this and understand that you are going to need to be patient. New listings are not flooding the market. You are not going to have 20-30 houses to look at that meet your needs, in fact if you are in the under $250,000 range you are going to be lucky to have 5 (depending on area, size, etc). You are going to need to act quickly and not wait for the weekend to view a property and submit an offer. When a quality listing hits the market you need to be ready, meaning be prequalified for your loan and ready to make a decision. You may also have to compromise on what you are looking for or raise your price point. The days of "low balling" an offer are over. You need to understand what homes are selling for in the area and submit a competitive, clean offer at market value.
If you are a seller you should be taking advantage of the low inventory. If you are considering selling you need to get your home on the market. Why wait until the banks release more REO's or the buyers purchase a different home? You will need to be smart and understand that you still have to price the home to sell. An overpriced home will not sell no matter what the inventory or market is like. A home that is priced above market value is not going to sell. It will not appraise so the buyer will not be able to get the loan and an investor will be a savvy buyer that thinks only of the bottom line. You will also need to understand that while most areas of the county have seen a stabilization of prices, this does not mean that prices are significantly rising. The market will bounce around down here at the bottom and slowly improve. There is not going to be a sharp increase in prices which will bring you back up to where it was at the height within the next year.
If are considering buying or selling, give me a call. I will assist you in understanding what the market value of a home is and help you through the entire process.
Tuesday, May 15, 2012
FHA Condos - Do They Really Exist?
With all the media coverage on the historically low interst rates and lower home prices, it is no wonder that there are many first time home buyers looking to make a purchase. A FHA loan is often the way to go for these buyers since the down payment can be as little as 3.5%. For many, this can be a double edged sword. I have numerous buyers right now who qualify for $150,000 using a FHA loan. They are interested in buying their first condo and are very excited and ready to go. They quickly realize that it is not going to be as easy as they thought. See when using a FHA loan there are some special criteria that must be met in order to qualify for the loan. Not only do the individuals need to qualify in terms of income, debt and credit but the condo unit and condo complex also need to qualify.
The condo unit has to be habitable. The condo systems such as electricity, plumbing and heat all need to be in good working order. There needs to be flooring, no peeling paint or holes, and a working stove. With a $150,000 purchase price limit, in San Diego this is the very bottom of the home price range. Many of the condos are in very rough condition and will not meet the FHA requirements. Let's say we do find one in decent condition, that is only the first hurdle. Now we need to take a look at the complex. The complex needs to have minimum of 51% owner occupied units. As more investors snap up the units that are in rough shape and rent them out the lower this percentage becomes. Leaving fewer and fewer complexes that meet this requirement. The third hurdle is that in order to go FHA the complex must not have a high delinquency rate of the HOA fees. With so many homeowners losing their condo many times the HOA fees are not paid for months at a time and if the property is a short sale many banks will NOT agree to pay the back HOA fees. The HOAs need to be in good shape in order for FHA to be possible. The complexes that have the higher owner occupied percentages and lower delinquency rates tend to be the more expensive complexes, which are out of the buyer's budget. I tell you this to keep you informed so that you go into your home search with your eyes wide open. For example in zip code 92019 there are only 11 complexes on the FHA approval list and most do not have condos listed for under $150,000.
So where does that leave you? It is not impossible to find a FHA condo for under $150,000 but you need to understand that not every condo you see on a listing website will work for you. You will need to have patience and understand the rules you are playing by. This will allow you to make informed decisions and be less likely to be disappointed when you find a condo you love but doesn't qualify for FHA. You will understand that there is stiff competition for properties of this type and be able to write competitive offers when you do find one that suits your needs. So go into the house hunt with knowledge and understanding. Understand what you are up against and don't give up. Keep looking and pushing and you will find what you need but give yourself plenty of time to do it.
The condo unit has to be habitable. The condo systems such as electricity, plumbing and heat all need to be in good working order. There needs to be flooring, no peeling paint or holes, and a working stove. With a $150,000 purchase price limit, in San Diego this is the very bottom of the home price range. Many of the condos are in very rough condition and will not meet the FHA requirements. Let's say we do find one in decent condition, that is only the first hurdle. Now we need to take a look at the complex. The complex needs to have minimum of 51% owner occupied units. As more investors snap up the units that are in rough shape and rent them out the lower this percentage becomes. Leaving fewer and fewer complexes that meet this requirement. The third hurdle is that in order to go FHA the complex must not have a high delinquency rate of the HOA fees. With so many homeowners losing their condo many times the HOA fees are not paid for months at a time and if the property is a short sale many banks will NOT agree to pay the back HOA fees. The HOAs need to be in good shape in order for FHA to be possible. The complexes that have the higher owner occupied percentages and lower delinquency rates tend to be the more expensive complexes, which are out of the buyer's budget. I tell you this to keep you informed so that you go into your home search with your eyes wide open. For example in zip code 92019 there are only 11 complexes on the FHA approval list and most do not have condos listed for under $150,000. So where does that leave you? It is not impossible to find a FHA condo for under $150,000 but you need to understand that not every condo you see on a listing website will work for you. You will need to have patience and understand the rules you are playing by. This will allow you to make informed decisions and be less likely to be disappointed when you find a condo you love but doesn't qualify for FHA. You will understand that there is stiff competition for properties of this type and be able to write competitive offers when you do find one that suits your needs. So go into the house hunt with knowledge and understanding. Understand what you are up against and don't give up. Keep looking and pushing and you will find what you need but give yourself plenty of time to do it.
Friday, May 4, 2012
El Cajon Concerts on the Promenade 2012
It is time once again for the El Cajon summer concert series, Concerts on the Promenade! Formerly known as Concerts on the Green, the summer concerts kick off tonight and will continue every Friday from now until the end of September. Come out for this free event every Friday from 6:00pm to 8:00pm. Located on Prescott Promenade near the corner of Main St and Magnolia, in the heart of El Cajon downtown. Here is the 2012 Event Schedule...
5/4 Pelicans (rock)
5/11 5 O'clock Shadow (acoustic)
5/18 Thunder Road Tribute Band (rock)
5/25 Coyote Band (country)
6/1 The Mighty Untouchables (dance/soul)
6/8 Chini Comberros (Spanish Flamenco)
6/15 Catillacs (nostalgic rock)
6/22 Lightening Train (country)
6/29 Upstream (caribbean)
7/6 The Heroes (rock)
7/13 Fred Benidetti (classic guitar)
7/20 Petty Breakers Tribute Band (rock)
7/27 Soul Persuaders (funk/rock)
8/3 Firefly (contemporary rock)
8/10 Tom Hyatt and the Sundown Riders (western)
8/17 Jones Revival (classic rock/soul)
8/24 Mardells (nostalgic rock)
8/31 Hot Rod Lincoln (rock-a-billy)
9/7 Back to the Garden Tribute Band (rock)
9/14 Berkley Hart Coffee (house)
9/21 Caliber Contemporary (classic rock)
9/28 Sue Palmer (boogie woogie)
Grab your chair and/or blanket and come out to this fun event. This is a great way to start your weekend. See you there!
5/4 Pelicans (rock)
5/11 5 O'clock Shadow (acoustic)
5/18 Thunder Road Tribute Band (rock)
5/25 Coyote Band (country)
6/1 The Mighty Untouchables (dance/soul)
6/8 Chini Comberros (Spanish Flamenco)
6/15 Catillacs (nostalgic rock)
6/22 Lightening Train (country)
6/29 Upstream (caribbean)
7/6 The Heroes (rock)
7/13 Fred Benidetti (classic guitar)
7/20 Petty Breakers Tribute Band (rock)
7/27 Soul Persuaders (funk/rock)
8/3 Firefly (contemporary rock)
8/10 Tom Hyatt and the Sundown Riders (western)
8/17 Jones Revival (classic rock/soul)
8/24 Mardells (nostalgic rock)
8/31 Hot Rod Lincoln (rock-a-billy)
9/7 Back to the Garden Tribute Band (rock)
9/14 Berkley Hart Coffee (house)
9/21 Caliber Contemporary (classic rock)
9/28 Sue Palmer (boogie woogie)
Grab your chair and/or blanket and come out to this fun event. This is a great way to start your weekend. See you there!
Wednesday, May 2, 2012
El Cajon Car Cruise and Show 2012
The Cajon Classic Cruise is a weekly car show held on Wednesday evenings from April 25th, 2012 though September 26,2012. The cruise runs every Wednesday from 5:00pm to 8:00pm in downtown El Cajon on Main Street and Magnolia. This is Southern California's largest weekly car show. Each week features a different theme and trophies are awarded in several categories each week. Plan on coming out to see classic cars and motorcycles, enjoy live entertainment, vendors, shops and restaurants.
Car Show Schedule
May 2: Cinco De Mayo
May 9: Flames on Main
May 16: Topless Nights (convertibles)
May 23: Funny Car Frenzy
May 30: Bike Night
June 6: Call of Duty (Military and Police)
June 13: Extreme Horsepower
June 20: Evolution of the Thunderbird
June 27: Rat Rod Rally
July 4: Salute to American Muscle
July 11: Cajon Speed Week
July 18: Off-Road Madness (Full Street Closure)
July 25: T-Buckets Galore
Aug 1: Return to the Horseless Carriage
Aug 8: Dragsters Rule
Aug 15: Evolution of the Camaro
Aug 22: Charger Steve's Starz Carz
Aug 29: Vintage Vans
Sept 5: Evolution of the Mustang
Sept 12: British Invasion
Sept 19: Truck Mania
Sept 26: Thunder on Main (Full Street Closure)
Car Show Schedule
May 2: Cinco De Mayo
May 9: Flames on Main
May 16: Topless Nights (convertibles)
May 23: Funny Car Frenzy
May 30: Bike Night
June 6: Call of Duty (Military and Police)
June 13: Extreme Horsepower
June 20: Evolution of the Thunderbird
June 27: Rat Rod Rally
July 4: Salute to American Muscle
July 11: Cajon Speed Week
July 18: Off-Road Madness (Full Street Closure)
July 25: T-Buckets Galore
Aug 1: Return to the Horseless Carriage
Aug 8: Dragsters Rule
Aug 15: Evolution of the Camaro
Aug 22: Charger Steve's Starz Carz
Aug 29: Vintage Vans
Sept 5: Evolution of the Mustang
Sept 12: British Invasion
Sept 19: Truck Mania
Sept 26: Thunder on Main (Full Street Closure)
Tuesday, May 1, 2012
El Cajon Real Estate Market Report - April 2012
Here are the El Cajon real estate market conditions for the month of April 2012. I have included the number of active listings, pending homes and the homes that sold in April for all three zip codes in El Cajon. If you would like the stats for condos or another zip code, please feel free to give me a call.
92019
There are currently 61 active real estate listings in El Cajon, ranging from $191,180 for 3 bedroom, 2 bathrooms, 1180 square feet to $1,799,000 for 3 bedrooms, 4 bathrooms, 4702 square feet.
52 properties are pending (in escrow).
19 properties sold (closed escrow) in April. Ranging from $196,000 for 2 bedroom, 1 bathroom, 1011 square feet to $560,000 for 4 bedrooms, 3 bathrooms, 3279 square feet. The average time on the market was 60 days.
92020
There are currently 48 active real estate listings in El Cajon (92020). Ranging from $165,000 for 2 bedrooms, 1 bathroom, 792 square feet to $900,000 for 4 bedrooms, 3 bathrooms, 2926 square feet.
51 properties are pending (in escrow).
28 properties sold (closed escrow) in April. Ranging from $139,000 for 2 bedrooms, 1 bathroom, 720 square feet to $730,000 for 4 bedrooms, 3 bathrooms, 2761 square feet. The average time on the market was 49 days.
92021
There are currently 58 active real estate listings in El Cajon (92021). Ranging from $119,900 for 2 bedrooms, 1 bathroom, 681 square feet to $3,900,000 for 4 bedrooms, 6 bathrooms, 7745 square feet.
58 properties are pending (in escrow).
30 properties sold (closed escrow) in April. Ranging from $114,500 for 2 bedrooms, 1 bathroom, 604 square feet to $710,000 for 5 bedrooms, 4 bathrooms, 6229 square feet. The average time on the market was 78 days.
92019
There are currently 61 active real estate listings in El Cajon, ranging from $191,180 for 3 bedroom, 2 bathrooms, 1180 square feet to $1,799,000 for 3 bedrooms, 4 bathrooms, 4702 square feet.
52 properties are pending (in escrow).
19 properties sold (closed escrow) in April. Ranging from $196,000 for 2 bedroom, 1 bathroom, 1011 square feet to $560,000 for 4 bedrooms, 3 bathrooms, 3279 square feet. The average time on the market was 60 days.
92020
There are currently 48 active real estate listings in El Cajon (92020). Ranging from $165,000 for 2 bedrooms, 1 bathroom, 792 square feet to $900,000 for 4 bedrooms, 3 bathrooms, 2926 square feet.
51 properties are pending (in escrow).
28 properties sold (closed escrow) in April. Ranging from $139,000 for 2 bedrooms, 1 bathroom, 720 square feet to $730,000 for 4 bedrooms, 3 bathrooms, 2761 square feet. The average time on the market was 49 days.
92021
There are currently 58 active real estate listings in El Cajon (92021). Ranging from $119,900 for 2 bedrooms, 1 bathroom, 681 square feet to $3,900,000 for 4 bedrooms, 6 bathrooms, 7745 square feet.
58 properties are pending (in escrow).
30 properties sold (closed escrow) in April. Ranging from $114,500 for 2 bedrooms, 1 bathroom, 604 square feet to $710,000 for 5 bedrooms, 4 bathrooms, 6229 square feet. The average time on the market was 78 days.
Alpine Real Estate Market Report - April 2012
Here are the Alpine real estate market conditions for the month of April 2012. I have included the number of active listing in Alpine, number of pending homes and the homes that sold in April. If you would like the stats for condos or another zip code, please feel free to give me a call.
There are currently 63 active real estate listings in Alpine, ranging from $175,000 for 3 bedroom, 1 bathroom, 1236 square feet to $2,595,000 for 6 bedrooms, 7 bathrooms, 6444 square feet.
30 properties are pending (in escrow).
20 properties sold (closed escrow) in April. Ranging from $200,000 for 2 bedroom, 1 bathroom, 768 square feet to $875,000 for 5 bedrooms, 4 bathrooms, 5373 square feet. The average time on the market was 57 days.
There are currently 63 active real estate listings in Alpine, ranging from $175,000 for 3 bedroom, 1 bathroom, 1236 square feet to $2,595,000 for 6 bedrooms, 7 bathrooms, 6444 square feet.
30 properties are pending (in escrow).
20 properties sold (closed escrow) in April. Ranging from $200,000 for 2 bedroom, 1 bathroom, 768 square feet to $875,000 for 5 bedrooms, 4 bathrooms, 5373 square feet. The average time on the market was 57 days.
Jamul Real Estate Report - April 2012
It is May and time to take a look at the real estate statistics for the month of April. Here are the market conditions for Jamul.. I have included the numbers for active listings, pending sales and closed (sold) homes in Jamul. These numbers are for single family detached homes only.
There are currently only 27 active real estate listings in Jamul. Ranging from $184,900 for 1 bedroom, 1 bathroom, 640 square feet to $1,299,000 for 6 bedrooms, 5 bathrooms, 5712 square feet.
15 properties are pending, currently in escrow.
9 properties sold (closed escrow) in April. Ranging from $195,500 for 2 bedrooms, 2 bathrooms, 792 square feet to $520,000 for 4 bedrooms, 4 bathrooms, 3806 square feet. The average time on the market was 74 days.
There are currently only 27 active real estate listings in Jamul. Ranging from $184,900 for 1 bedroom, 1 bathroom, 640 square feet to $1,299,000 for 6 bedrooms, 5 bathrooms, 5712 square feet.
15 properties are pending, currently in escrow.
9 properties sold (closed escrow) in April. Ranging from $195,500 for 2 bedrooms, 2 bathrooms, 792 square feet to $520,000 for 4 bedrooms, 4 bathrooms, 3806 square feet. The average time on the market was 74 days.
Subscribe to:
Posts (Atom)
AddThis
