Apr 12, 2010 by MichaelS.Dunn.

Going solo - Buying a house is a complex transaction. It should be a team effort. You’ll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search.

Love at first sight - If you believe in fairy tales you probably shouldn’t be buying a home. You won’t live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

‘Loanless’ shopping - Being pre-qualified gives you a general idea of how much you can afford to borrow. It’s better to be pre-approved for a given loan. Sellers will take you more seriously. You’ll stay on budget.

Overbuying - Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don’t forget to budget closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust - You are engaged in what’s likely your most valuable acquisition ever. It’s a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don’t take their word for it. Vet your team members.

Accepting oral agreements - Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you’ve got the details documented.

Skipping the fine print - Understand what’s really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale - Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors’ lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it’s time to sell your price may not cover your costs.

Making an unconditional offer - Protect yourself with these contingencies:

• Mortgage financing: You may be preapproved but is the house? A formal appraisal confirms — or not — that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection: Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance: Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

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Apr 01, 2010 by MichaelS.Dunn.

It seems a strange rule of thumb to say that our little valley will follow the national real estate trend, just at a 6 month delay. I mean, that just sounds like tooo much of a generalization to me. but it has happened that way for every major movement in the real estate market for the past 10 years.

What this means for us, is that we are probably at the bottom of the market. Yes, you heard me. I am going out on a limb and making the call. We’re at the bottom.

What’s the bottom mean you ask? The bottom is the best time to buy! Time to take action. If you have been a bit nervous about taking on debt and dumping all your hard earned money into real estate over the last couple of years, I can’t say a blame you. But I believe that the danger has passed and that it is now time to go for it.

Real Estate has historically been one of the best places to put your money over the long term, and for those that buy in the current market, it is likely that will be true for the future as well. Let’s take a look at all the reasons to buy NOW:

1. Tax credit still applies until the end of this month. That means $8000 for first timers and $6500 for those buyers that have lived in their current residence for 5 years or more and are now making a move.

2. Mortgage rates are rediculously low. This is one of the primary factors that determine whether a loan will be affordable for you.

3. HUGE, and I mean HUGE, selection of homes to choose from. A few years ago, the average buyer that I worked with would have one or two homes to choose from that were in their price range. This didn’t give them alot of options when it came to all the features that they would have liked to have in their home. Now, I typically narrow down a list of 30-40 homes by asking my clients to be more and more picky! Then we go and look at 10 - 20 homes and I again ask them to be MORE picky. This is the market to find your TRUE dream home.

4. If you don’t buy now, you’ll be paying rent right? That is money out the window.

5. Many sellers are anxious to sell and are open to negotiation.

6. Tax benifits, financial stability, pride of ownership, freedom to do what you like with your own property, and all the traditional reasons why it has always been a good idea to buy your own home. All of these things are still true, despite what you may have heard in the media!

In closing I’ll say it one more time, just in case you missed it. We’re at the bottom…BUY, BUY, BUY! (And of course buy what you can afford. Don’t over extend yourself because there is no need to in this buyers market.)

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Apr 01, 2010 by MichaelS.Dunn.

By Alan Zibel

updated 9:28 a.m. MT, Tues., March. 30, 2010

NEW YORK - A surprisingly strong rebound in California’s real estate market helped lift a key home price index for the eighth month in a row.

That’s good news for people who plan to sell their homes this spring. Prices are now up almost 4 percent from the bottom in May 2009, but still almost 30 percent below the May 2006 peak.

Prices rose 0.3 percent from December to January on a seasonally adjusted basis, according to the Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday. Prices increased in 12 cities in the index.

The biggest monthly gain was in Los Angeles, where prices rose 1.8 percent from December. And real estate agents say there’s a distinct sense the worst of the downturn is over.

Buyers are “seeing that prices are creeping up,” said Tony Middleton, a real estate agent with ZIP Realty who concentrates on the San Fernando Valley. “They’re losing bids on homes and they have to bid again.”

Prices in San Diego, meanwhile, rose by almost 0.9 percent. Phoenix had the third-largest gain at 0.8 percent.

Compared with the same month last year, the 20-city index was off just 0.7 percent from last year at a reading of 146.32. That was the smallest decline in almost three years and in line with analysts’ expectations, according to Thomson Reuters.

Rising home prices also could boost consumer optimism. For most Americans, their home is their largest asset, so as values climb from the depths of the housing bust, homeowners feel wealthier and more comfortable spending. And, for homeowners who owe more on their mortgages than their properties are worth, rising prices rebuild equity.

Consumer confidence rebounded in March after a February plunge, according to a survey released Tuesday. The Conference Board’s Consumer Confidence Index rose to 52.5 in March, recovering about half of the nearly 11 points it lost in February.

Still, shoppers remain cautious and there are signs that last year’s housing rebound won’t last. Home sales sank during the winter, and government incentives that have propped up the market are ending.

Another reason for the positive news is simply that the Case-Shiller index measures a three-month average of home prices. So January’s report includes November’s strong home sales.

Many analysts expect that the Case-Shiller number will eventually turn downward.

“It is only a matter of time before the index records a double-dip in prices,” wrote Paul Dales, U.S. economist with Capital Economics, who forecasts a 5 percent drop. The market will be tested in the second half of the year, he wrote, when a tax credit that has boosted sales is gone.

The Case-Shiller index measures home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.

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