Perspective - Perspective - Perspective!

As a Realtor, I have to keep reminding myself not everyone views life as I do.  For example... interest rates today are so low they seem silly to me.  Maybe that's because I started selling homes in 1979 when interest rates were 16-17%.  We couldn't even get loans on most of the homes then and had to use "creative financing" to close those escrows.  Every sale closed with a major party for me and the buyer or seller!  And celebrate we did ... it seems amazing today as we remember how happy we were just to be able to put together a transaction in those times ... sometimes you don't know what you don't know and it doesn't matter.  We all visualize things differently and therefore we all see the outcomes from those perspectives.  I was walking my beautiful Great Pyrenees dog the other day and was stopped by a lady walking down the street toward us.  "What an amazing animal that it is" she remarked.  "It looks like a wolf walking down the street."  I laughed - you should look at her from behind I said, from this angle with her long legs and dewclaws she looks like a hooker in high heels.  We both laughed.  How different she looked from each perspective.  

I was working with a first time buyer showing homes this month.  He was so excited and worried as he looked at each home we were previewing from the perspective of what it would be like to live in that house, in that neighborhood and with that mortgage.  We looked at quite a few homes over a few weeks and finally we found one that seemed to appeal to him.  We parted ways for the weekend and regrouped on Monday.  I asked him which home he liked best out of three we saw the previous week.  I started with helping him remember how the houses appeared from the street, how big the garages were, how many bathrooms and then he stopped me.  "I know" he said "which one I really liked."  Which one? I asked - he hesitated for a moment and then explained  "I liked the one with the kittens the best - remember the kittens in the backyard?  I hope they are still there.  That was the house I liked the best."  I laughed because I remembered the kittens too, they really pulled at our heartstrings knowing someone had left them behind.  But the big surprise was how he was processing all the previews and what made him remember his favorite house.  He remembered the home quite well too but his trigger was the kittens.  

I try to remind myself to slow down and smell the roses from time to time but sometimes the greatest help is to stop and try to see the world through someone else's eyes for a change.  It can make such a difference.   

Blessings for a wonderful summer!  

Team South Bay Realty
24214 Hawthorne Blvd. Suite B
Torrance, CA 90505
310-378-4440

SPRING HAS SPRUNG

and our Market Is On The Move!

4000Newton.com
 

Everyone is wondering what the 2013 real estate market will deliver.  So far, it looks like we have definitely bottomed out and are seeing significant increases in pricing in some areas already.  Some sellers are reluctant to put their homes on the market, worried they won't be able to get their price.  Of course that means fewer homes for sale and the competition can be fierce in the lower price ranges.  The sellers looking to move up in the market will benefit even if the pricing hasn't met their expected levels for their home sale.  The difference in purchase price on a higher value will make up for the lower sales price in most cases. 

Another important issue this year is interest rates.  So far we are still seeing the lowest rates in history for mortgage money.  That will change.  As the interest rates begin to rise, prices will be affected as the affordability for buyers will change.  Right now, we are even seeing 100% loans back in the market.  Unbelievable opportunity for financing right now if you have decent credit (FICO scores in the mid-600 range plus) and verifiable income.  Even those with distressed credit from previous short sales can benefit (must be longer than two years since recorded sale) as long as they have kept their spending to a minimum and paid all their accounts on time.  The financing is out there for everyone from first time buyers to jumbo refinances - take advantage while you can.

Some Fun Facts About the Market*

Who's Moving In The Next Two Years? 

48%  18-34 year olds

26%  35-49 year olds

16%  50-64 year olds

10%  65 and older

 

 

Team South Bay is looking for homes for our South Bay buyers!  If you are thinking about moving up or downsizing please give us a call.  We'll prepare a full market analysis for your home and neighborhood free of charge.  We also have a list of Income Property Buyers too.  Let us help you take advantage of this HOT real estate market. 

 

 

p.s. Dyna says the South Bay is

Heaven on Earth and we agree! 



*courtesy of the Demand Institute 





Financing Foreclosed Homes

 A "not so beautiful day in the neighborhood" for some homeowners today. Living next door to a boarded up home after foreclosure is not anyone's choice. Even with the price being way below market value (also not a blessing for the neighbors) the problem generally lies in being able to finance a severely distressed property. There is an answer that a lot of folks are over-looking in today's market. That is the old 203K loan. Still viable, available and a real good way to purchase that "fixer property" and have enough money to make it habitable.

Foreclosure properties, especially those with the water and power turned off, may not qualify for standard financing, but may qualify for a federally insured 203(k)loan. Buyers who are going to "owner occupy" the property and do not have enough money to purchase a foreclosure home using cash, may qualify for the federally insured 203(k) loan, which allows borrowers to roll projected rehab costs into the loan.

Since most foreclosure properties are sold "as is" and, oftentimes, heating, plumbing, and/or electric are problematic or inoperable, it's unlikely a conventional lender will lend money on the home. With a 203(k) loan, buyers generally employ an independent consultant hired by the Federal Housing Administration to review contractor cost estimates and architectural plans for things like whether the work will bring the property up to minimum standards, while not going overboard on improvements.

Buyers should be aware that not all foreclosure properties will be eligible. For instance, a partially built house that has never had a certificate of occupancy will require a construction loan of the kind that a commercial developer would use. We're also seeing more and more "unfinished remodeling job" homes today where the seller ran out of money and the building systems and/or structural definitions are lacking or insufficient. Those would require construction loans as well.

The interest rate on a 203(k) loan is approximately a quarter of a percentage point higher than on a standard FHA-insured loan, and a buyer also can expect to pay 1 or 2 points. Also, as with other FHA-backed loans, down payments may be as low as 3.5 percent, and loan limits apply. Currently, most FHA loans are capped at $729,750.

My friends at PACIFIC FIRST FINANCIAL will give you all the information necessary to investigate the 203K loan for your purchase. They also work with the CHF Platinum Program which is a Homebuyers Assistance Program featuring low interest rates and down payment along with closing cost assistance with Grants that do not have to be repaid. Call Sheila for the latest info at 310-214-9299.

Tote your toolbelt over to my office and I'll give you list of great opportunities in your neighborhood! We're always ready to work for you here at Team South Bay Realty, Your Realtors For Life!

Call 310-534-3940 or email: Charlie