What To Look For When Buying Real Estate

The first thing that most of us think of is the adage... "location, location, location". While that is certainly very critical, there are many other things to consider when buying real estate. Here are some universal guidelines.

How long you intend to stay in a home. This is an important question to consider because moving is quite expensive. If you're in a temporary job and may soon be relocating to another city or even state, renting rather than owning might be a better option. While none of us entirely knows how our future will play out, understanding how long you expect to stay in your home allows you the chance to decide how large a home you want. If you're a young couple, a home that is able to grow with you might be appealing. Whether you're buying a home to live in or as a rental, the next series of tips can help in either circumstance. What makes a home more comfortable to its owners can also make it more attractive to renters.

Job market. It's always a good idea to check the U.S. Bureau of Labor Statistics to see how the employment is in an area that you are considering purchasing a home. Areas with lower unemployment, of course, are most attractive. The greater the demand for jobs in an area, the more likely home prices are to go up.

Check area vacancies. This may not seem that important if you're planning to live in the home but actually this is a good thing to know even if you don't rent your home. If there are lots of vacancies compared to surrounding areas, there could be a slowing in the market. If you're planning to rent the home, you'll want to make sure that you have enough savings to cover expenses any time when your home sits vacant. If the market is slowing, there could be a period of several months before you get a quality tenant in place. Being prepared will ease the stress.

Visit the local police. Crime in an area isn't always detectable right away from a few visits to your potential home. Do a little digging. Ask questions. Investigate the neighborhood. Some areas may look okay but may have a high crime rate. It's best to understand the neighborhood you might soon call home.

Natural disasters. Believe it or not, some people like a home so much that they disregard the natural disasters in the area. This isn't to say that buyers should say, "Well, I can't buy a home in California because they have occasional earthquakes." Rather, some buyers are willing to gamble big time. For instance, they are willing to buy homes that are located on unstable cliffs where the cliffs are eroding year after year. Insurance... if you can get it... will certainly be higher. Natural disaster-prone areas such as flood zones may require additional insurance and a strong stomach to endure the stress. Ultimately, what to look for when buying real estate is about considering the things that will matter not just in this moment but in the years to come. Having a good strong foundation beneath your home and a safe neighborhood are key components to creating a happy homeownership and good investment.

Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Buying & Selling in the Housing Market’s ‘New Normal’

Home-shopping season is just getting underway, and many people who’ve sat on the sidelines in recent years are finally ready to enter a market that might be quite different from what they’re expecting. Here are a few tips to help buyers and sellers get the best results in the competitive market.

Tips for buyers

1. Choose the right real estate agent. Times have changed. Due to inventory shortages across the country (down nearly 17 percent from last year) the tables have turned, and buyers are no longer in control like they were a few years ago. Not only is it hard to find a good home for sale, once you do, expect to be competing with lots of other buyers. Choosing the right agent is more crucial than ever in this type of environment. You need to find someone who is skilled at negotiations and knows how to handle competitive offer situations.

Tip: Read online reviews of agents, focusing on reviews of their negotiation skills. Then interview at least three agents and ask how they handle competitive bids, what you can expect in your area/price range and what your strategy will be.

2. Get creative. Search for homes that aren’t on the market but might actually be for sale — if the right offer came along. You’ve heard of agents soliciting homeowners asking if they’d be willing to sell? Zillow has a feature that enables homeowners to post a dream price for their home — without actually putting it on the market. Buyers can search for homes that are “listed” this way, and contact the homeowner directly to start a dialogue. Make Me Move® listings are the fastest growing listings on Zillow right now, due in no small part to lack of inventory. Who knows, your future home may not even be listed on the market.
3. Make yourself as attractive to sellers as possible. Come to the table pre-approved for a mortgage and be able to put down 20 percent or more. Be prepared to close quickly — 30 days if possible as opposed to 60. Consider waiving certain contingencies. Write a heart-tugging letter as to what this home means to you — it works! Consider an escalation clause.

Tips for sellers
1. Price it right. Bidding wars are the new reality but only for homes that are priced right from the get go. Overpriced homes won’t attract buyer attention and therefore will miss all the action. Get lots of buyers interested in your home with the right price, and they’ll bid up from there.

Tip: Unsure of how to price your home? Try putting a Make Me Move price on Zillow first. It’s a low-effort way to test the market. You can gauge whether you get any interest from buyers, who are contacting homeowners with MMM listings in increasing numbers. You just may end up with a willing buyer, while avoiding the hassle of putting your home on the market, as well as the seller’s costs.

2. Your listing needs to be where the buyers are. Mobile is where it’s at. More and more buyers are using their mobile devices to shop for homes. Zillow says 60 percent of its weekend traffic comes from a mobile device. So make sure your home shows up on mobile real estate apps — and that it shows well. That means your listing should have lots of photos taken with a high-resolution camera.
3. Prioritize your home improvements. First, take care of any basic maintenance issues such as a leaky faucet or creaky door — small things that signal to buyers that the home hasn’t been property maintained and bigger issues could lurk ahead. Then before buyers walk through your door make sure your house is decluttered and sparkling clean! After doing these two things, you can make other basic improvements such as painting walls neutral colors, updating fixtures or installing a new appliance or two.

Tip: Don’t spend a lot of money on renovations just for selling purposes. Everyone has a different style, and while you may design your dream kitchen, buyers probably have other needs/wants in mind. Updates are fine; major, expensive overhauls are usually not worth it.

Written by Jill Simmons

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Tips for Preparing to Buy in 2013

You’ve been saving your pennies for a down payment and watching the housing market news. You see the low interest rates, are confident you’ll own a property for at least five years and know that you’ll be able to find a home that you’ll love within your budget.
You’re finally ready to buy a home in 2013!

Here are a few tips to help you get started.

Get with a lender
First up is going to a bank, direct lender, credit union or mortgage broker to get qualified for a loan. They will run the numbers to set your price range for financing. This will help you in working with a real estate sales professional to determine which areas and types of properties fit within your budget. The lender will also pull a credit report to see if you need to be aware of any credit issues. If necessary, this will give you time to start improving your credit picture to make you the most creditworthy you can be when it comes time to lock your loan rate and terms.

Find a competent real estate agent
You also should look for a real estate agent whom you feel can best represent you. Talk to friends and acquaintances for referrals, and interview at least three agents. Find out how many properties they’ve sold in the past few years, what training they have and whether they work as an agent full time and know the areas where you would like to purchase. Get some references from each one and actually take the time to call those references and see what they thought of the real estate professional’s service level and experience.

Educate, educate, educate
This will most likely be your most complicated, expensive and riskiest purchase of your life. You should talk to friends, family members and possibly a lawyer; read books, articles or take a class. In other words, do everything you can to better understand the real estate buying process and how to make the best home purchase decision.

Shop, shop, shop
Consider all the neighborhoods that fit in your price range. Drive them during the day, at night and on the weekend to get a feel for the areas. Look at the neighbors’ properties, any retail spaces nearby and check online neighborhood ratings, crime reports and school ratings. Learn all you can about where you are going to be a real estate owner.
With a price range from your lender, a good real estate sales professional on your side and a solid education on buying a home and the areas where you want to buy, you’re now better prepared to make 2013 the year of the home purchase.

Written by Leonard Baron

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Why Own My Home?

A soft real estate market that is ripe with all the conditions that should entice people to purchase a home still has some renters asking, "Why own my own home?" Low interest rates, lower home prices and an improving job market still have some buyers sitting on the fence fearful of an uncertain real estate market. Real estate agents and even sellers are finding that prospective buyers (current renters) may need a little more "emotional" attention in these market conditions. They may need a little more explanation to ensure that they understand the benefits of purchasing your home rather than renting another. While deciding to own a home or rent one is very personal, many tend to let fear of the unknown be the driving force in making their decision and that can later create an unhappy decision. Here are five top reasons to at least consider owning your own home. No more landlords: This may be a highly influential factor depending on a potential buyer's experiences. Many renters have poured a ton of money into a home that they're living in to keep it at the standard of living they enjoy, only to find that their landlord is soon planning to sell the home. Their hard-earned cash and money invested into their rented home will then only benefit the seller. Making a home your style: This is much more difficult to do in a rental. Yes, as I just mentioned, you can make some modifications, but many things that can be done to a home you own can't be done to one you're renting. Taking into consideration Homeowner's Associations or planned community development restrictions, owning still provides more control and flexibility over renting. Weighing the costs of homeownership: Of course, with homeownership you won't be calling the landlord to come fix your toilet or dishwasher. So, having a financial reserve is important to carry you through the months when you run into unexpected troubles. Websites such as GinnieMae.gov offer price charts that help you compare how much you'll save by buying or renting. It's a helpful tool that allows you to analyze factors such as how much tax savings you're likely to receive, how much possibly equity you'll gain, and how much you're rent may increase. Long-term plans tilt the scale toward owning: In a recent Tampa Bay article, Walter Molony of the National Association of Realtors said, "For people with long-term plans, the rent vs. buy equation is tilting heavily toward buying because housing affordability is at record highs dating back to 1970," he explains. "Homes are undervalued in many areas—selling for less than the cost of replacement construction—and rents are rising at a faster pace. Many people are considering ownership now as a hedge against inflation." Low interest rates and affordable homes will not last forever: If you're not ready to buy or simply can't afford to own a home, even the historically low interest rates and exceedingly affordable, home prices might not move you to take the leap into homeownership. However, understanding that these conditions won't last forever is important. Sometimes when conditions persist, we tend to think they'll always be this way. Distressed sales will begin falling in 2014 and that would then cause home prices to creep upward, predicts Moody's Analytics. With little activity on the homebuilding front, and still a heavy supply, it's not expected to increase much more. Also, the number of new households each year is rising, which is expected to help alleviate the oversupply in the coming years.

Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Housing 'Affordability'? It's Relative to Working Households

Don't talk about housing "affordability" to more than a quarter of America's working stiffs. Sure, home prices remain well off housing boom peak prices, and are relatively affordable. Certainly, you can purchase distressed properties in many locations for a song. Bargains abound. However, if you can barely afford to cost of your current housing, big whoop. More than 26 percent of working renters spend more than half of their household take-home pay on housing - and those costs are rising. The Center for Housing Policy's (CHP) annual "Housing Landscape" report tracked working households' housing costs from 2008 to 2011 and found that nearly one in four of all working households (renters and owners) spends more than half of its income on housing. It also found that the share of working households with a severe housing cost burden increased significantly between 2008 and 2011, rising from 21.8 percent to 23.6 percent. The report defines a working household as one with an income less than 120 percent of the median for its area, and with household members working at least 20 hours per week on average.
What housing recovery? For these Americans the housing recovery doesn't amount to a hill of beans. It isn't moving fast enough to help the economy create more, higher paying jobs - or stem the tide on rising rents. America's working renters saw their housing costs rise by 6 percent from 2008 to 2011, while their household incomes fell more than 3 percent. Among working renter households 26.4 percent of them spend more than half of their income on housing. "While rental costs have steadily risen over the last few years, wages for these working families have not fully recovered from the hit they took between 2008 and 2009. Spending most of your paycheck on rent means cutting back on other necessities, including healthcare and even food," said Janet Viveiros, a researcher at CHP, who also co-authored the report. Owning vs. renting Maya Brennan, also a report co-author, said the housing crisis has contributed to rising housing costs for working renters. The increased demand for rental housing is largely due to the crisis on the homeownership side of housing where millions who lost homes were forced to rent. Unfortunately the supply of rental homes hasn't kept pace with the demand and that imbalance has contributed to higher housing costs, especially for renters. "What we're seeing with the rental market is not explainable by population trends alone - it clearly reflects the movement of former homeowners into rentals as well as delays in home purchases by current renters," along with slow new housing starts, Brennan explained. The report also says working homeowners, who managed to hang onto their homes, avoided the upswing in housing costs renters suffer, but they too struggle with unemployment, reduced unemployment and falling incomes. While renters suffered a 6 percent rise in housing costs, homeowners' housing costs actually dropped by 3 percent over the study period, but during the same period, homeowners' household incomes fell 4 percent, compared to only 3 percent for renters.
Regional differences CHP's report also pinpointed hardest hit areas. Between 2008 and 2011, the share of working households with a severe housing cost burden increased significantly in 24 states and decreased significantly in only one state: South Dakota. Among the 50 states and the District of Columbia, the following five had the highest share of working households with a severe housing cost burden in 2011:

• California, 34 percent.
• Florida, 32 percent.
• New Jersey, 32 percent.
• Hawaii, 30 percent.
• New York, 30 percent.

Among the 50 largest metropolitan areas, the following five metropolitan areas had the highest share of working households with a severe housing cost burden in 2011:

Miami-Fort Lauderdale-Pompano Beach, FL, 41 percent.

Los Angeles-Long Beach-Santa Ana, CA, 39 percent.

New York-Northern New Jersey-Long Island, NY-NJ-PA, 35 percent.

Orlando-Kissimmee-Sanford, FL, 35 percent.

San Diego-Carlsbad-San Marcos, CA, 34 percent.

Written by Broderick Perkins

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

How To Chose A Real Estate Agent To Sell Your Home

If you’re considering selling your home, you will have a lot of competition to deal with. Whilst you can sell your home yourself, aptly called ‘for-sale-by-owner’, it is not generally recommended. You will most likely require a lawyer to handle the legal side of things, so you may as well engage a real estate agent from day one. So what’s the best way to chose a real estate agent?
You can ask friends and relatives, and you’ll often get some good advice based on experience. You can also drive around to see who has signs everywhere. You can also just pick up a phone book and use a pin. In most areas, a real estate agent who has been around for five or more years will most likely be a successful one. How successful is a different story, and it’s one that is difficult to answer.
The best approach is to find three or four real estate agents, and ask them to come out to inspect and value your home. Talk to them and listen to their recommendations. It’s important to feel comfortable with your agent, however, don’t let them push you into signing there and then. Let them know you are talking to several real estate agents and that you’ll call them once you have made decision.
When making that decision, don’t pick the agent who provided you with the highest valuation You want a listing price that is close to the sales price, not one that has been inflated to try and win your listing. A fair price, a personality that is easy to get along with, and someone who can empathize with your current situation – they are the important aspects to selecting a real estate agent to sell your home.

Written by Unknown

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com