San Diego Real Estate Expert: realtor san diego

Showing posts with label realtor san diego. Show all posts

Monday, November 17, 2014

Harvard’s 5 Financial Reasons to Buy a Home

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. Last year, he released a paper on homeownership - The Dream Lives On: The Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home. Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

Realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially.

Looking to sell, buy, or invest? Contact:
David Demangos

858.232.8410

Locally Known, Globally Connected

Luxury Home Marketing Specialist/Global Property Specialist

David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Sunday, October 19, 2014

Finding the Right Agent is Crucial

The information delivered by your neighborhood real estate agent in the past is now available on the internet. You no longer need agents for information regarding which homes are for sale or what houses in your neighborhood sell for. You can easily find that information online. This information itself is no longer what you need from your real estate professional. However, you still need someone to deliver a thoughtful analysis of this information.

“There’s a large gap between information and actionable knowledge.”

In other words, information by itself is essentially useless.

What’s truly important is being able to understand, analyze, and use the information for the best outcome. And that’s what a real estate professional’s job has become!

What you really want is someone who can…

The Truth About Buying a Home: You Don't Need 20% Down

In a recent survey, How Americans View Homeownership, it was revealed that 68% of Americans feel that now is a good time to buy a home and 95% said they want to own a home if they don’t already.

Confusion Creates Paralysis

However, the survey also reported that many are afraid to purchase a home because of uncertainty about qualifying for a mortgage or navigating the home buying process. Though 74% said they “now and understand the financial process involved in buying a home, they also gave answers that suggest otherwise. For example:

30% of respondents believe that only individuals with high incomes can obtain a mortgage
64% of respondents believe they must have a “very good” credit score to buy a home
44% believe that a 20% down payment is required

Is Real Estate Heading in the Right Direction?

Real Estate "Heading in the Right Direction" | Keeping Current Matters

In a recent Gallup poll, Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from "very positive" to "very negative." The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.

For the first time since 2006, Americans had an overall positive view of real estate, giving the industry a 12% positive ranking. So, yes real estate is headed in the right direction!

Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008. Gallup offers some insight into the reason for decline:

Prices Dropped

"In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate's image taking a hard hit.”

Housing Bubble

“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries' close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

Who do you know looking to buy, sell or invest anywhere in the U.S.? Call:

David Demangos

Global Property Specialist

858.232.8410
David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com

Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

Friday, October 3, 2014

Don’t Get Caught in the ‘Renter’s Trap’

In a recent press release, Zillow stated that the affordability of the nation’s rental inventory is currently much worse than affordability of the country’s home sale inventory. The release revealed two things:

1. Nationally, renters signing a lease at the end of the second quarter paid 29.5% of their income to rent

2. U.S. home buyers at the end of the second quarter could expect to pay 15.3% of their incomes to a mortgage on the typical home

Furthermore, renters pay more than the average of 24.9% that was paid in the pre-bubble period while buyers actually pay far less than the 22.1% share homeowners devoted to mortgages in the pre-bubble days. One of my smart neighbors just sold his boat today, and is using the money for his downbpayment on a new home in Reno. (Smart move)

Don’t Become Trapped

If you are currently renting you could get caught up in a cycle where increasing rents continue to make it impossible for you to save for a necessary down payment. Zillow Chief Economist Dr. Stan Humphries explains:

"The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates… As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters.”

Know Your Options

Perhaps you already have saved enough to buy your first home. HousingWire recently reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment.

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.”

Tips on Preparing a Home for Sale

Fifteen seconds.

That’s about how long it takes a prospective buyer to sense whether they’re going to have a good feeling about your house. Remember the “first impression” idea?

And that is why it is often important for people who want to sell their homes for the best price to make changes to get their homes ready to sell. This begins with basic, common-sense steps such as cleaning and fixing things that are broken to a practice called “staging” in which you purposefully arrange your house to put it in the best light.

You also want to make your home as move-in ready as possible because 95 percent of buyers aren’t looking for a fixer-upper or even a home that will require them to remove wallpaper they don’t like or replace carpeting that is worn or stained.

While sellers may think that removing wallpaper or replacing carpet are big steps that will cost too much or take too much time, doing both can work to their advantage.
Most buyers want a house that is clean and move-in ready, $3,500 to $4,000 in new carpet will save $15,000 in negotiations time and time again. Don’t worry that you will pick the “wrong” carpet. The point is that it be clean and fresh.

More Ideas

Light - Most people don’t live in their house with every light turned on, but that is how a house should be when a buyer first sees it. Many will advise for the homeowner to turn on every light, including those in closets, bathrooms and basements. Don’t be frugal with low wattage, either.

Second, always leave blinds and curtains open wide, taking advantage of every bit of natural light. It’s a psychological fact that the brighter a house when a buyer first sees it, the better impression they will have when they leave. And, that is what you want, right?

Staging – Here are three known rules about the ‘three D’s'. De-clutter, de-personalize and decorate. The house needs to become “universal” to appeal to the most amount of potential buyers. De-cluttering means tidying up (putting away magazines, books, paper stacks, toys and clothing) as well as packing up excess accessories and knick-knacks. These items prevent prospective buyers from “seeing” your house because there’s too much stuff in the way. Or, there is so much stuff that they can’t picture their stuff in the home. Removal will open up space. You are selling square footage!

If your kitchen counter space is limited, make it look as large as possible by putting coffeemakers, toasters, microwaves, cookie jars and other items in cupboards or storage.
After de-cluttering comes de-personalizing, an even more difficult step. (I call in universalizing) That means putting away family photos. Buyers want to see themselves in your house, and if there are constant reminders that it’s your house, they may walk away. That said, you don’t want a sterile house. So some things stay — and you need to decorate. Hiring a stager is also usually a good idea.

Paint - Bright, rich colors are popular, but when it comes to selling, neutral is best. That doesn’t mean white. White is seen as cold and sterile. But colors in the sand family or a soft gray — a new neutral tone are best. If you think color will help set off a room, confine it to one wall or add pillows or a piece of artwork.

Wallpaper. This may come as a surprise to people who love wallpaper, but it is not universally cherished. Even if you have spent thousands of dollars on a designer print, the odds are 10 to 1 against the next person wanting your particular style. And if you think it’s too much hassle to pull it down, so will the buyer.

Odors - Cooking smells, pet odors, diapers, mold, mildew and smoke can literally kill a sale. Smokers especially may have no 'nose' for cigarette smoke, but it is always apparent to nonsmokers. I have witnessed buyers will walk right out of a house with a cat or dog urine smell. Covering up odors is not the answer either, heavy perfume, plug-in air fresheners and candles will raise a red flag with buyers. Ozone machines do well removing odors.

Clean - Yes, this means windows, floors and furniture. If your faucets are chrome, make sure they shine. Nobody wants to move into a dirty house.

Exterior - Potential buyers have time during drive-bys, or even while the agent is getting out the key, to make an assessment. Clean the gutters, knock down cobwebs, power-wash your siding, do a little touch-up painting if there are spots that need it and perhaps paint the front door. If your front door is white, painting it can make it pop.

Put down a new welcome mat and, in the summer, place a pot of blooming flowers next to the door. Trim hedges and pull weeds out of cracks in the sidewalk and driveway. Store trinkets and doo-dads such as gnomes or whirlygigs. They’re not to everyone’s taste.

Fix it up - Sometimes prospective sellers look at their real estate agent and say, “I don’t want to remake my house, I want to sell it." While that’s true, some work - such as the new carpeting described above - can pay big dividends.

Sometimes the work is big. If you have a really old furnace, it could pay to replace it. Your real estate agent could use that as a selling point to prospective buyers, and you might get a quicker, better sale.

Sometimes the work is small, but there can be a lot of it. That is, your home has blemishes or inconveniences that you have learned to live with, but when they are piled one on top of another, (they) seem overwhelming in total. The more minor things you can fix, the better. And, you always feel a sense of accomplishment when you're finished!

Contact:
David Demangos

858.232.8410
www.DemangosHomes.com
San Diego Real Estate Expert
Our Team goes to Extremes to Fulfill your Real Estate Dreams

Saturday, June 22, 2013

Interest Rates are Rising, Are You Ready?

Listen in as mortgage expert Robert Perry explains the rising interest rates and how it will affect home buyers. For free information or you're curious what your home is worth, call David Demangos at 858.232.8410 or Email: David@DemangosHomes.com Want a free pre-qualification, contact Robert Perry at robert.perry@blufi.net or Call 206.947.5760

David Demangos

858.232.8410

David@DemangosHomes.com

www.DemangosHomes.com

I go to Extremes to fulfill your Real Estate dreams!

Saturday, May 18, 2013

Positives and Negatives of HOA's

To buy or sell your home, contact:

David Demangos 858.232.8410 or Email David@DemangosHomes.com

I go to Extremes to fulfill your Real Estate dreams!

Thursday, February 7, 2013

7 Steps to Effective Home Buying

You may be asking yourself, what! Seven steps to effective home buyers? Below are seven crucial traits of our successful home buyer client. What is a “successful buyer client”? Let’s just define it as someone who finds the home they want, and gets through nearly 100 steps of the home buying process without killing themselves, a loved one, the seller, or their real estate agent.

Effective Trait #1: Get pre-qualified (or pre-approved) for a loan.

You can’t effectively search for homes if you don’t know how much home you can afford. In today’s lending environment, it is crucial to know BEFORE you begin a home search what type of mortgage, and how much of a mortgage you can get. In fact, in California you can’t even submit an offer on a home without including a “Pre-Qualification Form” with your offer. Well, technically you can submit an offer without it, but I don’t recommend it. The vast majority of sellers are going to want to see some evidence that you can get a loan for the home.

It is crucial to work with a great lender throughout the home buying process. If you don’t know a lender, ask your agent for a few recommendations. Interview a couple of lenders and pick one and stick with them. Few things add more stress and headache to a real estate sales transaction than changing lenders mid-stream. Find a lender that won’t just tell you the maximum amount of a mortgage you can get, rather find one that understands that qualifying for a certain amount and being able to make the payments are two different animals.

Effective Trait #2: Define your must haves, like to haves, and can not haves.

My advice is to be specific. Tell your agent, “I’m looking for a 3 bedroom, 2 bath home between $400 – $450K. Single story, without a pool and at least a 2 car garage,” by doing this there will be very specific properties that meet your criteria and you won't overwhelm yourself with too many properties to try to look at.

Determine what you MUST have in a home. Then determine what you would LIKE to have in a home. Talk to your agent about these things. Don’t forget to include what you CAN’T have in a home — that will often be more important than anything else. Don’t know exactly what you must/like/can’t have in a home? That’s OK, it happens ALL the time. Your agent can help you by showing you different homes with different features to help you get a better understanding of what you’d like in a home. But at some point you are going to have to make decisions and not wander aimlessly about, looking at any home that may possibly fit some undefined set of criteria. That would be a waste of your time, and the time of your agent, the home sellers, your lender and everyone else that is involved in a real estate transaction.

Monday, November 17, 2014

Sunday, October 19, 2014

Saturday, October 18, 2014

Saturday, October 11, 2014

Prices Dropped

Housing Bubble

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

Friday, October 3, 2014

Don’t Become Trapped

Saturday, August 24, 2013

Saturday, June 22, 2013

Saturday, May 18, 2013

Sunday, April 21, 2013

Saturday, April 13, 2013

Friday, April 5, 2013

Tuesday, April 2, 2013

Monday, April 1, 2013

Sunday, March 31, 2013

Tuesday, March 26, 2013

Sunday, March 24, 2013

Sunday, March 17, 2013

Saturday, February 23, 2013

Thursday, February 7, 2013