Kevin Smith Real Estate Podcast

Dave Marzinke from Movement Mortgage is back again to address another important topic.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Dave Marzinke is back with us again to talk a little bit about appraisal gaps, the issues buyers are running into, and how we're working together to solve problems.If an appraisal comes in low, the important thing to know is that you have options. For example, if you're putting at least 10% down, we can readjust the loan-to-value based on the new appraisal and not have to bring additional cash to close. It does include PMI in some cases, but in others, it doesn't. It's a great strategy to help you overcome a renegotiation in this competitive market, but it's not the only one. There are multiple different options to address an appraisal gap depending on your situation.Dave is seeing very few low appraisals. According to him, under 20% of the total appraisals coming in are coming in low."There are multiple ways to address an appraisal gap based on your situation."If you have any appraisal or mortgage-related questions for Dave, give him a call at (949) 449-2477. If you have any other questions for me, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are seven ways you can update your home without breaking the bank.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! There are seven main ways you can update and improve your home. Even if you're not looking to sellimmediately, these can still help bolster your home's value and get you prepared in case you decideto sell:1. Paint your home. The least expensive way is to put a fresh coat of paint on everything: the exterior, ceilings, doors, or even wrought iron fences. It can even help protect the look of your home from wear and tear.2. Update the lighting. This might be one that gets ignored, but your hardware store, a magazine, or even other open houses can show you how others are upgrading the lighting. Getting recessed lighting and putting dimmers on the lights are a couple of great ways to improve the value of your home.3. Bring the indoor to the outdoor spaces. You can add sofas, fire pits, lighting, and carpets outside that can make it more enjoyable to stay out there. If you have a bit more budget you could renovate the deck or even add a pool."Even if you're not ready to retire or move, you want to update your home."4. Maintain your heating and air conditioning. I strongly suggest you service your units using some local heating and air companies. It can make sure they're running efficiently and help lower allergens in your home.5. Check or replace the windows. Replacing the windows is obviously the best, but if you don't have enough money, it still pays to check them, replace broken screens, or even apply some weather stripping.6. Repair the roofing. Replacing the roof outright can be pretty expensive, so alternatively you can fix specific leaks or get some air vents to cool the garage and attic spaces and make your roof more efficient. 7. Add storage. Adding a room, if you have the space, will always bump up your home's value. Particularly, bedrooms, storage rooms, and home offices are really good to add these days.I hope these tips give you some ideas. Feel free to reach out to me by email, text, or phone. I'd be more than happy to answer any questions you have.

It's critical to set the right expectations with both buyers and sellers.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Today I'm discussing how to set expectations with buyers and sellers both from the start and throughout the process.For buyers, despite how fast and crazy the real estate market has been lately, it's still a good idea to do a buyer's consultation. We set up a 30- to 45-minute meeting, the family and I get together,and we go over these four main things:1. Ensure they have sound financial guidance. The first thing we do in our consultation is discuss their finances. Have they talked to a large bank, credit union, or broker? Find out what they've been told so far and possibly guide them to get another consultation with someone you've worked with who you know will be able to do what they need seamlessly. We need to get things done promptly and with a step-by-step process. We don't want any delays or surprises amid escrow. 2. Set reasonable expectations. Next, you want to nail down what they're looking for. Make sure what they want to buy fits with their finances and the location they want. Sometimes school district lines change, so if they want to be in a specific district, ensure you're looking in the right area. Do they want more bedrooms, fewer bedrooms, a home office? You want to know what their home life is like so you're not sending them homes to look at that aren't going to fit into what they need.3. Ask about commuting. Do they need to live close to work, or are they willing to commute? Many properties in eastern California are much less expensive, but they'll have to commute, which could mean 45 minutes to an hour in the car. Are they willing and able to do that, or would they prefer to buy a smaller home and have more family time?4. Ensure closing dates align with other housing arrangements. Escrows are commonly 30 days, so you need to make sure the closing matches up with the end of their lease or moving day. Movers may be busy right now, so we need to coordinate the closing date properly. Also, schools are starting at different times, so moving plans also have to match up with when kids need to be there."We need to set these expectations for buyers and sellers from the beginning."Here are three things to do in service to your sellers:1. Set reasonable sale time expectations. They might have heard from a neighbor that they will sell their house in one day. Yes, you may sell the house in one day, but it could take much longer to sell if it hasn't been properly cleaned or scheduled correctly for showings. Take an assessment of the home, and check if it needs any upgrades or staging. Use the available data to see how long the home will be on the market.2. Reasonably price the house. That same neighbor could have told your client that they will sell for $200,000 over asking price. However, you need to price it at value or a bit below it. Overpricing a house in any market is detrimental because you'll likely have to decrease the price (possibly more than once) and chase the market downward. Buyers that have already seen the house probably aren't going to come back once the price falls.3. Don't rush the closing process. Again, escrow usually takes 30 days, but some real estate agents are pushing that we close in 20 or 21 days. However, we have to ensure everyone is doing their part, there's enough time for inspections, and everything is signed correctly. We don't want an escrow to fall through because everyone's trying to rush it. We need to set these expectations for buyers and sellers from the beginning to ensure things gosmoothly. If you can, it will save everyone from tons of frustration. If you have further questions about setting expectations or any other real estate matter, feel free to comment below or reach out via phone, text, or email. We look forward to speaking with you soon.

Here are six steps to take when evaluating potential land for a new home.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! In a market like this where multiple offers, overbids, and high prices are commonplace, I have some clients who are looking to the future. They are getting ready to retire in California in about two years, so we're looking for a custom lot to build their home.If you're in the same boat, here are some factors to consider when purchasing a custom lot:1. Physical inspection. Look for things on the lot itself such as trees, fences, or other debris. Check the property lines, whether it's gradable or not, etc. 2. Utilities. What kind of utilities will you need? Are you in the city and hooked up to the sewage system, or are you out in the country and need a septic system? If you do need to put them in, it's important to factor in those costs."Having the right title information will protect you now and in the future."3. Soil report. This isn't super expensive. An inspector will take soil samples, do measurements, and give you a report on the soil you have. It could be filler or clay, and there could even be bedrock underneath. You need to have the soil report in order to build a structurally strong foundation for your new home.4. Title information. You'll need to do some background research on this lot. A title professional can check for any liens, encumbrances, encroachments, or easements. This will help protect you in the future as well.5. Check if you're in an HOA. If you are, you'll need to review the CC&Rs, HOA docs, and bylaws to make sure the home you're building will fit in with the community around it.6. The city. Go into the city records and find out whether there are future city plans down the line for the area in which you're building. Will you have a giant skyscraper built next door, or will it stay in a secluded area?If you're set on building a new home, a custom lot is a great way to go. If you have questions about how to start this process or anything else related to real estate, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are buyers' dos and don'ts for preparing for bidding wars.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! In this time of bidding wars, multiple offers, and everything moving so quickly, make sure you're doing the right things when submitting your offer as a buyer. Here are three dos and two don'ts to keep in mind:Dos1. Get pre-approved. I always tell my clients we need to bypass the pre-qualification and go straight to pre-approval. You'll go into underwriting with your lender, which means they'll get all the information and qualify you for a loan. They'll ensure all your forms are done, your income checks out, and everything is verified. Underwriters go through steps the federal government requires for a loan, so the sellers will know that you will be able to close on the home. 2. Make a strong offer. Make sure you're putting as much money down as you can; the more money down, the stronger you appear. There are a few ways to do this, but one way is to put down more earnest money. An experienced real estate agent can guide you on this, but generally, the earnest money is 1% to 3%, but if you can put down double or four times that amount, your purchase is almost guaranteed, as long as your agent doesn't remove any contingencies. Put down as much money as you can to help cover all of your closing costs, escrow fees, etc. The seller will take notice if you're putting down more money than any other offer.3. Take note of the condition when considering buying as is. When you're walking through the house, take notes on the eaves, woodwork, plumbing, furnace, air conditioner, and roof, and write down questions to ask the selling agent. Make sure all the maintenance has been updated. These are things you should know about before going under contract. If you decide to buy as is, you'll know what may need to be repaired. Often, it's just something small, but if you're not paying attention, there could be a large expense you'll be required to pay for after you close. " Bypass the pre-qualification and go straight to pre-approval."Don'ts1. Don't eliminate the inspection. I would never buy a house without a home inspection, even if it looks great. Make sure it's done by a qualified inspector who will give you the report in a timely manner so you know exactly what needs to be done when you buy the house. 2. Don't remove your financial contingencies. If you're buying with a loan, you have to get an appraisal and get the loan approved. If you remove the loan contingency, you could have huge issues when it's time to close.If you have any questions or comments about these points or real estate in general, feel free to leave them below or call, text, or email me. I would love to help you.

Two examples to help you decide if now is the time to enter the market.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Is now the time to buy a second home or investment property? Today I'm sharing recent examples of a client who bought a second home and one who bought an investment property to help you decide whether now's the right time for you. " Average prices nationwide have increased by about 21%."The pandemic made people need to stay home more, so many couldn't wait to get away from home again when they could. A bunch of states had regulations, and plenty of hotels and airlines were closed for business. One of my clients looked into and recently closed on a second home about two and a half hours away in the desert. They have a pool, a different climate, a place to play tennis, ride motorbikes, and more. That's what people are looking for—a place to drive away to and not have to rely on anyone or anything except transportation. Another client of mine just bought an investment property. When investing, you need to pay attention to the price point. Average prices nationwide have increased by about 21% to around $420,000. My clients purchased a duplex, which will have a positive return cash flow, and the amount of money they had to put into it was small. This is something to discuss with your financial planner and see how it may benefit you while the interest rates are still very low and there are multiple properties available for investors. There are currently more opportunities for investors because those who have been investing in real estate for a while are seeing such a rise in their equity that they're taking advantage and selling, and you can benefit from that.If you have any questions about buying a second home or investment property, feel free to reach out to us via phone, text, or email. We look forward to speaking with you. 

Don't believe these misconceptions about hyper seller's markets.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Here are four misconceptions about a hyper seller's market that you shouldn't believe:1. You have to have a plan to sell. It's good to have some type of outline, but you don't need to have it down to an exact science. A lot of sellers think they have to sell their homes and have an existing home available right away. However, it's common for sellers to sell their homes, have a 30-day close, and then have a 30- to 60-day rent-back period. Sometimes, this rent-back period is free. In any case, this gives them time to figure out how to move into their next home. 2. The condition of the house doesn't matter. You always want to make sure your home is in good condition when selling, no matter what market you're in. Even in this hyper seller's market, your home needs to be in good condition. If you accept a buyer's offer but they discover a whole bunch of problems with the home during the escrow period, they may back out of the deal. To prevent this, make sure your home goes through some type of inspection before selling (which you'd attend with your agent).3. Price doesn't matter. It's true that if you list your home, it will likely sell quickly (hopefully with multiple offers). However, we're seeing sellers get on the greedier side and list their homes above where they should be. The problem with this is that buyers have a certain limit, and if you overprice your home, they won't even look at it. soon." You always want to make sure your home is in good condition when selling."4. You can sell as is without any professional help. You might get a few offers by doing this, but there are a lot of things to consider when listing a home. For example, is it staged correctly? Is it marketed correctly? How will you deal with multiple showings the first weekend after you list? If you get multiple offers, how will you navigate through them and make sure you choose the best one? Selling by yourself is not a good idea. Get a professional to help you. You'll have a much easier transaction and deal with far less stress. As always, if you have questions about this or any real estate topic, don't hesitate to reach out to me. I'm happy to help. 

Buyers are specifically looking for a couple of new things this year.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Today I want to talk about the top three buyer preferences that sellers should know about. When getting ready to sell your home, buyers are specifically looking for a couple of things this year:1. Office space. Since COVID, the main thing buyers are now looking for is an office space where they can close the door and have some quiet while they're on Zoom calls. They want a nice background behind them without a lot of clutter.2. Storage. Buyers want a nice organized storage place. This goes for all kinds of areas such as the garage, in the kitchen, and closets. 3. Outdoor space. Having a place outside where we can get some fresh air is a huge selling point. These include backyards, a patio, or even a balcony. This is somewhere where people can get out and relax with comfortable furniture, plants, and maybe a barbecue.If you have any questions or comments, reach out to me either by phone, text, or email. I look forward to talking with you soon.

Here's how interest rates affect how much house you can afford.Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! How much home can you afford with the present low interest rates? This week, I had a client interested in a property that was valued at $500,000, which she's been approved for, and she's putting 20% down. With the current interest rates at 2.875%, her monthly payment would be $2,285. A few years ago, that same property valued at the same price with a 4.5% interest rate would have been $2,652 per month, which is a difference of $367. As you can see, an increase in interest rates is the most crucial thing to consider when buying a home right now. "Locking in a lower interest rate is the best decision, even if you have to go a bit higher in price." If we took this example a step further, and now the property is valued at $550,000 with that 2.875% interest rate, her monthly payment would be $2,513. Now let's say she decided to wait a while; she didn't want to get into a bidding war and drive up the price, so later the home is worth $450,000 but interest rates rose to 4.5%, her payment would climb to $2,387, which is still more expensive for her with the $50,000 drop in price than if she would have bought the house with a lower interest rate. In today's market, locking in a lower interest rate is the best decision, even if you have to go a bit higher in price. If you have questions or comments about interest rates or anything else, feel free to leave them below or call us. We look forward to helping you. 

Here are five questions that every home seller should ask before listing. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Low inventory and interest rates are causing absolute craziness in our real estate market. If you're thinking about selling your home, you should hold off until you're able to answer all five of these questions confidently:1. Where are you going to go? Are you going to sell and buy another home right away? Are you going to rent instead?2. Are you ready for the showings? We can't have open houses, so we'll have to stack showing appointments on top of each other. Within the first seven days that your home is on the market, you could have up to 70 people coming through the house. A real estate professional is the best hire you can make. 3. Is the house ready? You might need to make some renovations. You'll need to do some deep cleaning and decluttering and possibly some staging before listing the property.4. How will this affect my finances? Talk to your CPA, accountant, or tax person because if you have a large gain, you'll likely have a larger tax bill. Know this info ahead of time and run the numbers.5. Are you ready to hire a Realtor? A professional is the most important person you can hire. They will be able to negotiate, handle the contracts, do disclosures, and deal with any problems that might arise. You'll be better off if you hire a professional.These are the five big questions every home seller should be asking before they list their home on the market. If you have any questions for me, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s how many Americans actually made money throughout the pandemic. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! Some people have been making a lot of money this year, and there are a few reasons why.Over the last year, the housing market has boomed. Multiple-offer situations are causing bidding wars and allowing sellers to (in my opinion) get more than their houses are actually worth. A big factor behind this has been the stock market, as most people have seen huge gains in their portfolios. A lot of people have jumped in, and many of them have made a ton of money.People who have owned a home since the 2009 housing crash have also enjoyed equity growth in their home values. These individuals have a lot more money available to them right now; if they wanted, they could pull out their equity or refinance in order to buy an investment property.For many Americans, the pandemic has actually increased cash flow, increased savings, and decreased debt. Interest rates are also at historically low levels. We’ve seen them as low as 2.75%, though they’ve risen slightly. Still, even a 3% rate is fantastic and allows you to buy a bigger home for a lower price.The pandemic has also played a role in a few ways. People have been saving money because they’re traveling less and avoiding restaurants, and stimulus checks have allowed many to build up their savings as well. Some people have even seen their income increase due to unemployment. A lot of people have also been given early retirement packages, and companies that have decided to relocate have given bonuses to employees that come with them. Some families are also receiving inheritance or life insurance because a loved one passed away due to COVID.For many Americans, the pandemic has actually increased cash flow, increased savings, and decreased debt. This means that more people than ever are ready to find a home. If you are looking to buy or sell, have any questions, or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

Here is the key difference between sales professionals and consultants. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! A real estate sales professional is someone who might be pitching or pushing their client into buying something for their own financial gain. A sales consultant, on the other hand, is going to ask a lot of questions, identify the client’s pain points, and help them make the right decision. A consultant is also going to inform and educate their clients, taking them step-by-step through the entire process so it’s not a stressful situation.If you have any questions about this topic or how we help our home sellers reach their goals, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Here’s what sellers can do to deal with a low appraisal. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! If you’re a seller, what if your home’s appraised value doesn’t meet its contract price? With the market being so hot and so many multiple-offer situations happening, we’re seeing a lot of this right now. The first thing you want to do in this situation is look over the appraisal and check for any errors. Appraisers are super busy, so it could be something as small as having the wrong address or the wrong square footage. If everything checks out, your next option is to have your agent file a rebuttal. This rebuttal should include all the latest comps from your neighborhood and an explanation as to why you don’t think the appraisal is correct. After you’ve made sure everything’s been done correctly, send this rebuttal to the lender. From there, they’ll take a look at it and see what they can come up with.Appraisers are super busy, so it could be something as small as having the wrong address or the wrong square footage. If that doesn’t work, your last option is to renegotiate the price with the buyer and come up with terms that satisfy both parties. As always, if you have questions about this or any real estate topic or are thinking of buying a home soon, don’t hesitate to reach out to me. I’m happy to help.

A few laws regarding ADUs (accessory dwelling units) have changed in California. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! If you haven’t heard, the Senate in Sacramento has passed new bills that enact a couple of changes regarding ADUs. The first bill, AB 881, has three key aspects to note:The first aspect of the bill changes the language about setbacks, which are the amounts of space you can build up to the property line, making them smaller. Now that space is limited to four feet instead of the 10 or so feet you were allowed before (depending on your city or county).The second part to note is that they’ve made the square footage of the ADU itself larger. For instance, if you have a 3,000-square-foot house on a 13,000-square-foot lot, you can go up to almost half the size of the house, to a maximum of 1,200 feet. If you have a smaller house, say 1,100 square feet, the maximum you can go up to is 800 square feet. This change adds a substantial amount of square footage to your house that you can use as in-law quarters, or even rent it out for income.  The third aspect of Bill 881 is that it shortens the amount of time you can get approval from the city. Where it was once 120 days, it has now been reduced to 60 days. This makes it a lot faster for people to get their permits billed, which has been taking longer these days due to a land shortage. SB 12 removes a hurdle that people typically have to jump when building an ADU. The second bill passed was AB 670. If you live in a neighborhood that has CCNRs and HOAs, this bill will change a few things. Let’s say you have a 13,000-square-foot lot and an HOA has been added to your neighborhood. The new bill allows you to add an ADU to your home regardless of your CCNRs or HOA.The third bill was Senate Bill 12. This bill eliminates the fees associated with getting permits for ADUs, and if they’re under 700 square feet, then those ADUs will have no additional fees levied on the property. This removes a hurdle that people typically have to jump when building an ADU.If you have any questions or comments about today’s topic, don’t hesitate to reach out to me. I’d love to speak with you.

These four tips will help you achieve your goals in 2021. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel! If you’re having trouble setting and achieving your goals for 2021, here are four tips I use that can help you too: 1. Have an accountability partner. An accountability partner means having someone to tell your goals to—this could mean a group of people, a mastermind, a friend or family member, or a coworker. Telling them the goal you’re reaching for and being able to check in with them on a weekly (or monthly) basis helps you keep your goals set. I use an accountability partner for my health and fitness goals. Having a class to go to or a trainer makes me be on time and pushes me to hit my goals. 2. Make SMART goals (Specific, Measurable, Achievable, Realistic, Timely). For the Achievable criterion, make sure you have short-term, medium, and long-term goals that are obtainable. Having achievable goals gives you a nice pat on the back as you move through the year. If you have a goal, write it down and figure out whether it’s a financial goal, sales goal, etc. 3. Get educated. We’re always evolving and changing, and education is very important. Whether this means attending a webinar, seminar, or taking a Zoom class, getting educated will keep you at the top of your game. Technology is always changing aspects of the real estate business (e.g., contracts), and keeping up to date with these changes is a great way to maintain a sharp business. 4. Have a plan. If you have a goal, write it down and figure out whether it’s a financial goal, sales goal, etc. Then calculate how many transactions you’ll need to close and how much money you’ll need to make on a weekly, monthly, and yearly basis to reach that goal. After that, stick to your plan. If you have to tweak it throughout the year, that’s fine; just make sure you’re doing your due diligence and stick to the plan. If you have questions about today’s topic or need any type of real estate assistance, don’t hesitate to call or email me. I’d love to help you.

Having inspections done beforehand will alert you to any potential issues. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Should you take the time and money to fix up your home before selling or are you better off selling it at a discount and not doing anything? Here are some tips to help:1. Get an assessment from a real estate professional. They should know the ins and outs of the market and be able to give you a better idea of what you could sell for with making fixes and without making fixes.2. Get your reports upfront. For example, a termite inspection will give you a report about the conditions of the wood in your home. A pre-listing home inspection will point out any areas of neglect so we know how to price the home based on its condition if we do choose that route.3. Be realistic with the pricing. In today’s market, it’s possible to overprice. Pricing at or slightly below market value will not only get you more eyes on the property, but it will also help you sell it faster and for more money.4. Timing. If you have a few months and some cash to spend, the repairs can be easily made and really impact your final sale price.If you have any questions for me about fixing up your home, selling your home, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s everything you need to know about Proposition 19. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Back in November, the “ayes” barely eked out the “nays” as Proposition 19 passed with a margin of 51% to 49%. This directly impacts the tax basis of California homeowners who are in the 55+ age bracket. One of the benefits of Prop. 19 is that it allows you, a senior homeowner, to transfer your tax basis (1%) to any county in California, not just the 14 counties that had been participating prior to the 2020 vote. The second benefit is that a tax basis can be transferred up to three times—a significant increase from the previous one-time cap. This gives you more flexibility if you know your next home won’t be your “forever” home. Here’s a huge drawback, though: In order for children/grandchildren to inherit a property from their parents/grandparents and keep the same tax basis, the property must be used as a primary residence. So if, for example, a son is living in Florida and his California-based parents pass away, he’d have to move into their house permanently so he could keep their tax basis; if he plans to hold onto it as a second home or rental property, then the property must undergo a tax assessment for 1% of its current value. Prop. 19 gives you more flexibility if you know your next home won’t be your “forever” home. Depending on how long someone’s parents or grandparents have been living in a property, this change in the inheritance law could mean the difference between them paying $1,000 a year in taxes or $10,000 a year in taxes. Properties inherited as second homes will be reassessed at the current market value—no exceptions. These tax liabilities will be huge. If you have more questions about Prop. 19 or need some help with your buying, selling, or investing plans, reach out by phone or email anytime. I’m always here to help you make sense of the market, and I look forward to hearing from you soon.

Have a very merry Christmas and a happy New Year. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!I want to take this opportunity to wish you the happiest of holidays. I know 2020 has been a challenge for all of us, but we made it. We’ve had the pleasure of helping many clients buy and sell homes, and I hope you’ve had a good year too. On a personal note, I look forward to spending time with my nieces and nephews and seeing the joy of Christmas through their eyes. Be safe out there, have a merry Christmas and a happy New Year, and I look forward to seeing you in 2021! If you ever have any real estate needs, don’t hesitate to reach out to me. I’d be happy to help.

More and more homebuyers are moving across the country. Here’s why. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!What’s behind the increased migration of homebuyers across the country?  Since the COVID-19 pandemic began, many companies have realized they don’t need all of their employees to physically come to work, which has convinced them to either close down their offices or move their offices to less expensive states. Similarly, many employees have realized that they don’t need to live in major metropolitan cities and are now moving to the suburbs or other less expensive areas. According to a recent poll, roughly 67% of employees across American claim they don’t have to go into work as much as usual. Those who’ve been renting in the big cities can now afford to buy a home in the suburbs, a rural area, or even another state due to the low interest rates we’re seeing. National Van Lines, Inc. recently conducted a migration survey and found that these are the top five states from which people are moving:New JerseyIllinoisConnecticutKansasOhioMeanwhile, these are the top five states people are moving to: VermontOregonIdahoNevada ArizonaThere could be a variety of reasons behind these migration patterns. Here in California, for example, we have a high tax bracket and a high income tax, so many businesses and residents are leaving. Additionally, our average home price is about $500,000, which is twice as expensive as any other state in the union. The average yearly salary needed to live in San Francisco alone is roughly $350,000. If you’d like to talk more about what’s driving people to relocate or whether or not it’s in your best interest to do so, feel free to call or email me anytime. I’d love to help.

Here’s a tool from our pal Dave that can help buyers make better decisions. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!I’m back once again with my good friend Dave Marzinke from Movement Mortgage to talk about a topic that’s been coming up a lot in my conversations. With a lot of homebuyers facing multiple-offer situations, people are unsure whether or not they should make an offer over list price just to get the home they want. The answer is that it all depends, but we have a tool that can help you make a decision.It doesn’t always make sense to make an offer over list price. It’s essentially an online automated valuation model that gives a forecasted home appreciation for a particular home over the next 12 months and over the next five years. In some cases, it may make sense to go in and make an offer over list price based on a great future forecast. Over the long term, it could be a great move.If you have any questions or want a better idea of whether a home is worth buying over list price, reach out to Dave at (949) 449-2477. If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email anytime. We look forward to hearing from you soon.

Dave Marzinke joined me recently to break down the latest mortgage news. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!I’m back again with Dave Marzinke from Movement Mortgage to talk about what’s going on right now in the mortgage industry.A few weeks back, the Federal Reserve announced that they were going to keep the federal funds rate at 0% through 2023. Most buyers hear that and think it will keep rates down for another two years, but that might not be the case.The truth is that mortgage-backed securities are a completely different instrument than the federal funds rate. The federal funds rate can be set by the Federal Reserve and they can change it whenever they want. Mortgage rates themselves are affected by mortgage bonds, which are affected by inflation. When we start to see signs of inflation, that can push rates back up even if the federal funds rate is zero.      Mortgage-bonds affect rates more than anything else. If you have a decent credit score, good income, and a solid debt-to-income ratio, you’re looking at an interest rate of 2.75% to 3% for a conventional mortgage if you were to buy a home right now. It makes a ton of sense to buy and lock in that rate for a 15- or 30-year term.If you have any questions for Dave about interest rates or anything else related to mortgages, give him a call at (949) 449-2477. If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are basic the differences between Redfin and Zillow you should know. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Usually, one of the first times I’ll ever hear from someone is when they call wanting to know the value of their home. More often than not, these soon-to-be sellers mention estimates they got from Redfin and Zillow; they want to make sure they’re looking at the most accurate comps and that they know what’s been happening in their market over the past 30, 60, or 90 days. The main difference between Zillow and Redfin is that Redfin works with a smaller number of homes—about 74 million compared to Zillow’s 110 million. However, of the 74 million homes that Redfin uses, one million are actually active on the market. Zillow may have a larger total pool of homes, but a smaller percentage of those homes are active on the market. Redfin takes most of their listings right form the MLS. Additionally, Redfin factors in the list price of properties on the market, whereas Zillow does not. Instead, Zillow will use the square footage, room count, and general tax information to figure out an average of sorts. Redfin takes most of their listings right form the MLS, which is obviously the most accurate source. Their margin of error for estimates of value is roughly 1.77%, which is very low compared to Zillow; a couple of years ago, Zillows margin of error was around 7.9%, but they’ve managed to get that down to 4%. Redfin and Zillow are great tools to use if you’re looking for a place to start, but I strongly recommend reaching out to a professional who has a lot of experience working with your local marketplace. If you have any questions about your particular property, don’t hesitate to call, text, or email me. I’d be more than happy to help you.

These are the closing costs buyers need to be aware of when purchasing. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!As a buyer, closing costs are a part of doing business when closing a transaction. Here are six such fees to prepare for when buying a home:1. Title fees. Here in California, title representatives will conduct a background check to ensure the property is clear of any liens or other encumbrances, so they’ll have their own fees. How much this will cost you depends on the price of your home, but if you’re getting a loan for, say, $465,000, it will be in the neighborhood of $1,400. 2. Escrow fees. If you buy in California, escrow companies will cover all the documentation and act as middlemen between you and the seller. Typically, they account for 1% of the purchase price. These fees can include notary fees, so if you’re able to go to your agent’s office to sign any paperwork, you can reduce the cost of this fee.3. Home inspection fees. You don’t have to order any inspections, but it’s highly recommended that you do. A general home inspection costs anywhere between $400 and $600—depending on whether the property is a condo or house.  There are six fees to prepare for when buying a home.4. Lender fees. The exact cost for this fee depends on which loan you apply for—FHA, conventional, jumbo, etc. Talk to your lender and ask for a quick overview of the fees they’ll charge to get a good idea. 5. HOA fees. If the property is in an HOA neighborhood, you’ll have to pay the HOA transfer fee. 6. Property taxes. Real estate taxes are prorated at closing, depending on the day and month of your purchase. On the seller side, these fees can be provided by your agent. You can also ask the escrow company to provide a detailed net sheet of each estimated cost before listing your home. As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m here to help.

Here’s what you can do to protect yourself from a potential lawsuit. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!If you’re an investor and own multiple properties, how do you protect yourself from a potential lawsuit? Here are four tips to limit your liability: 1. Be honorable and ethical. Treat your tenants honestly and make sure they’re taken care of. Being upfront with them goes a long way. Make sure your contracts are signed properly, the deposits are returned in a timely manner, and anything that needs to be fixed in your units is done so immediately. Simply knowing your tenants elevates your relationship with them to a richer level and can potentially protect you from being sued. 2. Set up an LLC (or multiple LLCs). I, for instance, have seven properties that are owned as part of LLCs. You can assign two properties per LLC, or assign them up to a certain value amount. This way, if you’re sued for one property, an established LLC will act as a legal veil that protects your assets. There’s always the potential to lose your business assets, but your family needs to be taken care of first.3. Set up a HELOC. A home equity line of credit ensures that you’ll have cash reserves if you need to hire legal counsel. If you don’t need them, then no harm, no foul—you’re not paying any interest on them. 4. Set up an umbrella policy with your insurance broker. This way, you can increase the insurance that will cover specific things related to the property. Your insurance company will cover you in case there’s an accident, and you can make sure your property is well-secured. If you do get sued, it’s imperative that you protect your family. There’s always the potential to lose your business assets, but your family needs to be taken care of first. You can always buy real estate again, but it’s more important to have enough money set aside to take care of your family while the lawsuit proceeds, so have some money saved up or a mortgage that’s paid off for yourself. If you were found guilty and needed to pay restitution, you’ll obviously want to pay what you can. During this process, though, you can set up a self-directed IRA or Roth IRA to put some money aside for the future that the tenant can’t touch. If you have questions about protecting your assets or there’s anything else I can assist you with, feel free to call, text, or email me. I’d love to speak with you.

Home preparation has to start somewhere; here are top my five suggestions. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Preparing your home for sale seems simple at first, but can soon unfurl into a daunting campaign. Like most things, home prep becomes easier once you know what to focus on. Here are the top five things you should do as a soon-to-be home seller: Have a consultation with your Realtor. I love to meet with a potential client to discuss some of their goals, establish a practical time frame for each step in the process, and share what sort of approaches we can implement to maximize their sale.  Tackle home improvements. If you’ve lived in your home for 10 years or more, you’ll more likely need to tackle some problem areas. Today’s buyers are savvy when it comes to scoping out a home; they’ll leave no stone unturned, so we need to make sure any issues to the front, back, and inside get addressed beforehand.  Whatever we can do to make the home more turnkey ready will be worthwhile.  Make sure the home is decluttered. Before we can have photos taken, your home needs to be clean and photo-ready. I know everyone likes to think they always keep their home presentable, but selling is a different ball game; your home has to look like a model home—cleared out, clean, and minimally (yet tastefully) furnished. I suggest getting a few boxes and mark some for donation, trash, and the rest for storage. If you declutter thoroughly, you will get the highest value for your home.  Improve curb appeal. Now, I’ve already addressed a lot of this topic in a previous video, but here’s a quick recap of things that go a long way for a home’s exterior: power washing the driveway; planting new flowers and weeding the garden; painting your front door; trimming lawn edges and shrubbery; and laying fresh mulch.  Professionally stage the home. I have a couple of professional designers that come in and help us stage the property. So if you don’t have furniture that’s necessarily in the best shape, we can actually rent chic items and arrange them in the most conducive way for pictures. We could also just move your furniture around to maximize lighting and make each room appear larger. If you want your staging prepaid, we can deduct that money from the escrow at the end of the sale (this financing option also applies for any of the aforementioned projects if you don’t have the money to get them done yourself). I hope this list provided you with a better sense of direction as a seller. If you have any questions, reach out to me via phone or email. I’m happy to answer your questions, refer you to great resources, or schedule that initial consultation with you.

Here are four tips for relocating to a new area or state. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Today I have four tips to share if you’re moving out of the area or state:1. Talk to your agent. The real estate agent selling your house will have referrals in their database of agents in other areas, both in your state and outside of it. I have tons of referrals for Realtors I’ve worked with in other states. 2. Groups of real estate agents. This is another excellent resource to use. For example, I work with a VA representative (Veterans Association of Real Estate Professionals). They have over 40 chapters all over the country, and I’ve met them at conferences, spoken to them on the phone, and know their history. I’ve also worked with the Women’s Council of Realtors. These are fantastic resources. There are different organizations that your agent is either a member of or knows, and they have people who could be amazing resources to help you find a new property.Your real estate agent will have contacts in their database for great Realtors in other areas.3. The agent contacts the client. The out-of-area Realtor will contact the buyer moving to their area and have a long conversation about where they’re going to work, the school districts, different areas and cities nearby, and more. Then they’ll help the client make decisions based on their needs. These needs could include traffic concerns, activities they’re involved in, price, etc.4. Find a national lender. If you’re selling your home from somewhere else, you’ll need a national lender, someone who is licensed in the state you’ve come from to the state you’re moving to. This will make the transaction a lot smoother than having to go through two different lenders.These are just a few tips if you’re moving to a different area or state, but there are many more. Contact us if you’re interested in hearing more about this topic.If you have any further questions, comments, or suggestions, feel free to call or text us. We look forward to helping you.

When adding value to your home, avoid these two costly upgrades. Buying a home? Click here to perform a full home searchClick here to search our new construction homes.Selling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!If you want to add value to your home before you sell, there are two things you actually shouldn’t add to your house:1. Windows. I had a client who wanted to replace his windows but was planning on moving in about two years. Within this time, he would not get all his money back. However, he decided to go ahead and get them because his current windows weren’t working properly. New windows are a great idea if you’re improving your home for the long term. However, if you’re only going to be there for a short time, you won’t get your money back for that investment. (Of course, get them if you need windows that work correctly, like my client.)New windows and solar panels are expensive, and you may not see a return.2. Solar panels. Another client of mine had 22 panels installed on his house. At the time, the state was offering a tax credit on solar panels, so he only had to pay half the cost. He’s retiring and plans to stay in his home for a long time. His solar panels will decrease his monthly electricity bill, so it was an excellent investment. However, a different client of mine is selling their house and has a lease on their solar panels. That lease has to be qualified by the new buyer. If you have solar panels on your home, remember that when you sell, that payment you’re making on them must be qualified by the buyer, and they may not be able to afford or get financing for that extra cost. Bottom line: You’ll save on utility costs if you plan to stay in the house long term, but there are extra costs associated with solar panels.Also, check out this link to my video about the pros and cons of installing a pool on your property.If you have more questions about home upgrades to avoid or real estate in general, feel free to reach out via phone, text, or email. I look forward to speaking with you soon.

With fewer in-person showings, virtual showings are more popular than ever.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!If you’re thinking about selling your home, its online presence is more important now than ever. Here are a few tips to help enhance your online listing and ensure that it catches the eyes of homebuyers:1. Plan ahead. Using your pictures and videos you can set up a website for your virtual open house. Buyers can sign up, sign in, and even make an appointment to see it in person. 2. Come prepared. Make sure that you have masks, sanitizer, and gloves if you do have buyers coming to see a home in person. Practice social distancing, too! Turn on the light switches and leave all the closets and doors open.3. Do a walk-through. Before a buyer sees the home in person, you can take a virtual video tour of the home and post it on Facebook and your MLS listing.If you have any questions about how to show your home virtually and/or in person right now, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

It’s a strange time, but our real estate market is still active.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!A lot of people have been asking me if it’s a good time to buy or sell a home. Even though we’re still in a global pandemic, I want to reassure you that the real estate market is moving along. Over 2,300 home sales closed in March in Orange County across all price ranges. We’re still doing business, albeit in a more safe and socially distant manner. What can you expect in the coming months? To find out, watch this short video above.

It may seem like the world’s ground to a halt, but many people still need to buy or sell a home. Here’s how we’re stepping up to help.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Today I’m sharing some of the steps I take to help people who are otherwise unable to buy or sell in this ever-changing market. It all starts with arranging a virtual meeting for us to discuss your preferred time frame for buying or selling, and what features you’re looking for in your next home. I’ll set up a search criteria within a specified area for price ranges, amenities, build types, etc. and send matching properties directly to you via email. From there, we can carefully narrow down your options. Getting in and out of homes right now is difficult, but that’s where virtual tours come into play; I’ll be able to enter a home myself, showcase its features via a live or pre-recorded video, and answer your questions. To learn more about other awesome tools, like 3D Matterport virtual walkthroughs, watch the short video above.

There are many pros and cons to buying or selling a home right now. Here’s what you need to know.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Today I’m discussing the pros and cons of buying or selling a house during this pandemic. People who have lost their jobs may not be able to make their mortgage payments and might not be able to keep their homes. Of course, that’s heartbreaking, but they’re able to sell right now despite the health crisis. Also, more houses coming onto the market benefits buyers. Additionally, interest rates are currently extremely low. To learn more about buying and selling amid the coronavirus, watch the short video above.

If you want to avoid having a nightmare tenant move into your property, here are five tips you must remember.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Here are the top five tips you must remember if you want to avoid having a nightmare tenant:1. Make sure they have a completed application. This way, you’ll be able to follow up with them and find out more about their personal and work history. 2. Make sure they have a good credit report. For this, I use companies like RentSpree and TenantReport.com. They charge anywhere from $20 to $35, and they’ll provide you with a complete credit report along with the potential tenant’s credit score. I typically look for a score above 720, but exceptions can be made, depending on the explanations. Find out the applicant’s current pay history, whether they pay on time, and make sure they don’t have any foreclosures or bankruptcies. 3. Ask for bank statements. I usually ask for two or three of the applicant’s latest statements. These statements will show you a pattern of their current bills, and you can compare them to their credit report. 4. Meet the applicant at the property. This verifies that the property is exactly what they’re looking for. It also gives you an opportunity to introduce yourself, establish a great rapport, determine the best means of communication, and go over a few ground rules (e.g., where they’ll be parking).5. Beware of any applicants who want to move in immediately. Any situation where applicants want to move in immediately constitutes a red flag for me. Why do they need to move in so quickly? Haven’t they planned this out? This isn’t to say that everyone has to follow the typical 30-to-45 day moving timeline, but in this case, I recommend getting in touch with their current landlord and asking why they want to move out so quickly. As always, if you have questions about this or any real estate topic, don’t hesitate to call, text, or email me. I’m happy to help.

David Marzinke of Movement Mortgage is here to explain a great program for self-employed borrowers.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Self-employed borrowers take a lot of deductions on tax returns to reduce their exposure come tax time, which is right around the corner. So, instead of using their tax returns to come up with their qualifying income, David Marzinke and the Movement Mortgage team uses their net income to determine how much home self-employed borrowers can buy. They can look at either the borrower’s business or personal bank statements, depending on how they structure things, to come up with qualifying income based on those deposits. Self-employed borrowers can increase their purchasing power.This increases the self-employed borrower’s purchasing power, as they’ll be able to show their full deposits and present more income. There are some limitations, however: The self-employed borrower has to have been in business for at least two years, and they need to own at least 50% of that business. As always, call, text, or email if you have questions about this or any other real estate or lending question. We’re here to help and would love to hear from you.

More and more homeowners are selling to iBuyers these days. Here’s what they offer and why you might want to think twice before using one.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!For those out there looking to sell their homes, iBuyers (or instant buyers) have become an increasingly popular option over the last few years. In fact, one particular business sold over 10,000 homes in 2018. These programs are run by companies like Zillow, Opendoor, Knock, and Offerpad. They reach out to home sellers, ask them to fill out a home evaluation, and make a cash offer. Most of the time, the price that they offer you will be 20% less or more than your home’s actual market value.Although you’ll take a discount on the sale price, iBuyers do offer convenience. They can get you the cash right away and let you close whenever you want. If you need to sell or move quickly, this could be a great option for you. Another benefit is that nobody has to even come through your house or know that you're selling it. No open houses, no showings, and no nosy neighbors. If you prefer to keep your sale private, this could also be an attractive option.iBuyers will typically ask you to make repairs after their initial offer.The major con that you need to watch out for is the hidden fees. They can charge anywhere from 13% to 15% on commission, whereas a traditional agent will only charge you 5% to 7% with no hidden fees.Another con is that they’ll typically ask you to make repairs. They offer the price, you sign the contract, then they find out you need repairs. Of course, they will want to reduce the offer at this point, and you may end up stuck doing them because you already signed the contract.Finally, sellers typically aren’t represented in this type of transaction. Once you’ve signed on the dotted line, you can’t use representation. If you had an agent, they’d be able to negotiate on your behalf and in your best interest.If you have questions about iBuyers or anything else related to real estate, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Cross collateral loans can help you buy and sell at the same time. Here’s how.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Today I’m joined once again by Dave Marzinke of Movement Mortgage to discuss cross collateral loans. I have a client who’s looking to sell a $1-million house in Mission Viejo that they only still owe $550,000 on. They’re also looking to purchase another house, so the plan was to sell their current home first, and close on their new home, which is listed at $1.2 million. However, this process comes with moving problems and whatever complications arise from needing to coordinate closings.This is where the cross collateral loan can help. Nobody wants to be a contingent buyer and have to sell their current property and be in escrow before making an offer on a new home, so this loan allows you to place a loan on two properties at the same time. It also allows for more flexibility on the down payment you’ll need for your new home.Nobody wants to be a contingent buyer and have to sell their current property and be in escrow before making an offer on a new home.So hypothetically speaking, let’s crunch the numbers for my client. The combined value of their current home and future home is $2.2 million. The cross collateral loan can be up to 90% of that value—in this case, $1.98 million. After paying off the balance of their current home, that leaves them with a little over $1.4 million to buy their new home. They can technically buy with no money out of pocket. To qualify for a cross collateral loan, you’ll need a minimum FICO score of 700 and a minimum debt ratio of 50%. You’ll also need six months’ worth of cash reserves for your loan payment. If you have questions about cross collateral loans or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

In 2020, you can use 100% financing for a VA loan even if the house you’re buying is over the loan limit.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!An important change has been applied to the VA loan in 2020, and today I’m joined by Dave Marzinke of Movement Mortgage to discuss this change and why it benefits you. Previously, you had to come up with a down payment if you were buying a house whose purchase price was over the county loan limit. The down payment was 25% of the difference between the purchase price and the loan limit. Now, you can use 100% financing even if the house you’re buying is over the loan limit.If you have any questions about this topic or need help buying your next property with no money down, call or email me anytime. I’d love to help.

Today I’m giving you the scoop on how the market performed last year and what we can expect as this new year progresses.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!In 2019, we saw a very strong U.S. economy. Trade wars with China, Brexit, and the Trump impeachment dominated headlines. Unemployment reached a 50-year low, and the GDP delivered on high expectations. The interest rate for a 30-year fixed mortgage ranged anywhere from 4.5% to 3.5% and finished at 3.75%. Here in our Orange County market, the active inventory is at about 3,700 homes. That number may sound high, but it’s actually anemic for our market. As the year heats up, we’re anticipating inventory to rise; by summer, we can expect about 7,000 homes on the market. For those selling homes right now, you have no competition, so take advantage of it. On the buyers’ side, there aren't a lot of homes to choose from. Still, if you find something to your liking, be sure to put in a competitive offer—I’m sure the seller will take it. Overall, 2020 will look a lot like 2019, just a tad hotter.We’ll likely see a 3% to 4% growth in demand around the spring and summer. The housing cycle for 2020 will mirror 2019: We’ll start slow in the first quarter, heat up in spring, top out in summer, and cool off come fall. If you’re in the market for a luxury property, now is a fantastic time. Days on market for that bracket is currently between 175 and 275 days, so conditions are prime for striking a good deal. I foresee interest rates remaining about the same in 2020. If our economy continues trending upward, we may even see a slight increase. However, if developments regarding trade wars or Brexit rock the boat, we could see a small decrease to about 3.5% to 3.75%. To any potential buyers on the fence: Lock those rates in, get the house now. Overall, 2020 will look a lot like 2019, just a tad hotter. Buyers need to be patient, as multiple-offer situations will become more common. If you have any questions about what the year ahead holds or if you’re thinking of buying or selling now, please reach out to me. I’m always happy to help.

We want to wish you a very happy holiday season from all of us at First Team Real Estate!Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Happy Holidays to you! We hope you enjoy this wonderful time of year and make some fantastic memories with your family and friends. We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us. This may be a busy time of year, but we are always here to help and answer any questions you may have. Give us a call or send us an email. We would love to help you. In case we don’t hear from you soon, have a happy New Year!

Here are a few choice tips you can use to make your home more energy-efficient this winter.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Winter is coming! If you want to save money on your heating bill when the cold season strikes in full, here are seven tips to help:1. Hire a professional to do an energy audit. For between $200 and $600, an energy auditor will come to your home to assess the energy-efficiency of your home and provide a checklist of items you may want to fix before the winter starts in full. I’d be happy to refer you to one we know and trust; otherwise, you can find them on www.Homeadvisor.com.  2. Seal your walls. Your local hardware store should have a variety of caulks you can use to seal off any cracks in your walls that allow warm air to escape and cold air to seep inside.3. Seal your light fixtures. Those who have recessed lighting might be surprised to learn about how much air can leak in through those fixtures. You can close off any gaps around your light fixtures simply by using electrical tape. 4. Fill in any insulation gaps. Check your attic for gaps in the insulation, as well as around your water faucets; both are prime places for heat to escape if they’re not properly insulated.Those who have recessed lighting might be surprised to learn about how much air can leak in through those fixtures.5. Check your heating system. Make sure your pilot light is lighting efficiently, change out your filters, and ensure that airflow through the system isn’t being blocked.  6. Insulate your windows. Purchasing double-paned windows will help with the cost and efficiency of heating your home. 7. Purchase a smart thermostat. Smart thermostats help set your home’s temperature when you’re sleeping or when you’re out of the house so that you’re not using too much energy when you don’t need it. Many brands have smartphone applications you can use to automate your thermostat. Nest and Smart Learning Nest are some of the more popular brands.If you have any questions or would like more tips for making your home energy-efficient this winter, don’t hesitate to reach out to me. I’d love to help you.

I want to wish you and your family a happy Thanksgiving!Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!The Thanksgiving holiday is one of my favorite times of the year. I want to wish all of you a happy Thanksgiving! I’m thankful for the people in my life: friends, family, and coworkers. I hope you feel the same! If you are interested, there is an enjoyable event coming up in our area. The 42nd annual Orange County Turkey Trot is extremely entertaining, you can see more information here. Thank you very much for all of your support. I hope you have a safe and cheerful holiday!If you have any questions concerning real estate, please reach out to me by phone or email. I would love to help you.

If you’re thinking of buying an investment property, here are a couple of handy financing options.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!I have a client who’s looking to buy a duplex in San Clemente that’s priced slightly under $1 million. If you find yourself in a similar situation, what kind of financing should you use to purchase your property?According to Dave Marzinky of Movement Mortgage, there are two options you should consider. The first is conventional financing. The minimum down payment for this option is 15%. You can then use 75% of the gross rent of the other units to finance the purchase. The minimum FICO score needed for this loan is 620 but, as always, the better your credit score the better your financing terms will be. Since my client’s score is roughly 740, her interest rate will be in the 3% to 4% range.The better your credit score the better your financing terms will be.The second option is an FHA loan, whose minimum down payment amount is 3.5%. In any case, passive income is a great way to build wealth, and with interest rates as low as they are, it’s a great time to buy an investment property. If this is something that interests you, don’t hesitate to reach out to me so I can help you get the ball rolling. As always, if you have any other real estate questions, feel free to reach out to me as well. I’d love to help you.

As a buyer, you’re allowed to hold title in a trust, but you’ll need to provide your lender with certain documents.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!A client of mine is in the middle of a home purchase and he wants to put the property in a trust. If you ever find yourself in a similar situation, can you hold title in a trust? Today I’m joined by Dave Marzinke of Movement Mortgage to answer this question. You definitely can, but there are a few documents you’ll need to provide to your lender. The first is a copy of the revocable trust. The second is a trust certification of attorney opinion letter. The latter is an outside document that certifies how the trust is set up, who’s a part of it, and how it’s recorded. Also, the certification has to be notarized. You can provide these documents after the offer is accepted if need be.If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Is selling this fall a good idea? Actually yes, and today I’ll explain why.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!If you’ve thought about listing this fall but aren’t sure whether it’s a good time to do so, then I’ve got some good news. Not only is buyer demand strong right now, but inventory is low, as well. This translates to lower competition (and the potential for a higher sales price) for those who do choose to list.  If these reasons weren’t enough, many buyers are also eager to find their next home before the holidays arrive. This sense of urgency only serves to further your leverage as a seller.Today’s low inventory translates to lower competition (and the potential for a higher sales price) for those who do choose to list.Those looking to upgrade their living situation by moving into a larger property (or one in a higher price point) are also at a particular advantage right now, as appreciation rates have jumped up by 5.2% this past year.Of course, financial factors aren’t the only reasons you might want to make a move. Personal developments can be an equally strong incentive to sell. Whether it’s a marriage, a new job, the birth of a child, or anything else, selling your current home so that you can transition into another often comes along with these major life changes. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What can reverse mortgages be used for? Finance expert and reverse mortgage specialist Kevin Kaltenbach joined us recently to explain.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Today I’ve brought on finance expert Kevin Kaltenbach to discuss an important topic: reverse mortgages. As it happens, Kevin is a reverse mortgage specialist, so you’ll definitely want to hear his thoughts. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure: 0:05 - Introducing today’s topic: reverse mortgage options0:52 - Kevin shares his advice for a client of mine who is considering a reverse mortgage1:56 - How to refinance a home using a reverse mortgage2:24 - Kevin dispels a few common misconceptions about reverse mortgages4:19 - How to purchase a home using a reverse mortgage6:44 - A few closing wordsIf you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Many of my clients are looking for investment properties, so today I’ll provide you all some tips about how to be a successful investor.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out and subscribe to my YouTube channel!Since many of my clients are looking to become real estate investors, today I thought I’d share a few tips regarding what it takes to be successful if you make the decision to invest.1. Know what it means to get a good deal. It’s not just about getting the right price; some people see a property with a low price and think of it as a great way to make money. Besides negotiating a good deal on price, you should also look at whether that property is located in an appreciating area. A good investment property is one located where there are jobs available, there’s a good rental market, and where the economy, in general, is on an incline.2. Have an exit strategy. Just like with stock, when you’re going into a real estate investment, you want to buy low and sell high. If you intend to hold onto the property for one year, your plan should be different from one in which you plan to hold the property for, say, 20 years. Having a plan before you make the investment will help you think about important things such as whether the property will provide you with monthly cash flow or whether it will appreciate over longer periods of time. Your exit strategy will make sure that you’re buying the correct property per your goals. A good investment property is one located where there are jobs available, there’s a good rental market, and where the economy, in general, is on an incline. 3. Have cash in reserves. If you’re doing a long-term investment, consider whether your property is a cash flow property and whether you will have enough cash to allow you to make improvements to it. Be sure to have a reserve of cash on hand so that you can handle any unexpected costs or make any necessary repairs or improvements to keep your tenants happy and your investment stable.If you have any questions or comments about investing in real estate, please feel free to reach out to us. We look forward to hearing from you!

In the information age, accuracy has become increasingly important. Here’s where you can find the most accurate information about your home’s value.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out my YouTube channel here!Homebuyers and home sellers can become very frustrated with some of the numbers that they see online. I get people asking me all the time about homes that actually aren’t available for sale. Some prospective buyers think that a property is available because of what they see online, but that information isn’t always accurate. Sites like Zillow, Trulia, and Realtor.com don’t get updated every day, or even every week in some cases. On the other hand, my website pulls from the direct MLS feed every 15 minutes. By utilizing this kind of search site, you will get the most updated information available on the properties you’re looking at.Double check any information you get with a professional. Another thing you want to look out for as a seller is the estimates that these sites give you. Studies show that Zestimates from Zillow can be anywhere from 10% to 20% off. That’s a huge margin of error, especially in our market. Double check any information you get from a site like this with a professional like myself. I can come out to assess the true value of your home and determine a pricing strategy where we can get it sold in the shortest amount of time.Finally, make sure that you’re pre-approved or pre-qualified for the properties that you're looking at online. Talk with a lender first. If you need a recommendation for a good local lender, I’d be glad to help out. These are a few of the biggest pieces of information that you’ll likely want to get from a professional instead of from an online algorithm. If you have any questions for me in the meantime about buying a home, selling a home, or about real estate in general, don’t hesitate to give me a call or send me an email.

Relocation buyers must take a few extra steps when moving from one state (or one country) to the next, and this message will cover just a few of the most important.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out my YouTube channel here!Whenever a client relocates in or out of their current state, the real estate process can seem especially daunting. Thankfully, my team and I have got the resources and the connections to make your move from state to state go smoothly. Take the example of my most recent client: a recent retiree who wanted to move somewhere with plenty of lakes and places to fish. While I’m tackling the sale of his current home here in Southern California, I’ve delegated the task of finding his next home to an agent I know in the area he’s searching. I leveraged my network to refer him to someone I knew would do a great job in helping him buy. This story is great, but it’s just one of many. If you need to move out of state, I’d love to serve as your resource for referrals. On that note, I can also refer you to high-quality professional movers. After all, getting yourself from one home to the next is one thing, but moving all of your belongings is a whole different ball game. Also, if you happen to have pets, it’s important to keep them in mind as you plan your move. This will be especially critical if you’re moving from, say, Hawaii, because there’s a high likelihood that your pets will be temporarily quarantined upon arrival. The key is doing your research beforehand so that you know exactly what to expect.If you need to move out of state, I’d love to serve as your resource for referrals. Speaking of research, out-of-state buyers must be aware of how the closing process varies between states, so be sure to work closely with a local Realtor as you navigate these all-important steps. But what if your move isn’t just to somewhere out of state? What if you’re moving out of the country, instead? Obviously, buyers in this scenario will need to fulfill various legal requirements, like obtaining a Visa or other immigration-related documentation, in addition to the usual steps of the moving process. Last (but absolutely not least) on the list of things relocation buyers must consider is childcare and education. Transitions like these can be a lot to handle for children, so if you’re moving as a family, don’t forget to research the relevant resources available in your new area. In short, a lot goes into moving from one state (or one country) to another. This kind of move can be quite complex, so having professional help will be a must. If you have any other questions, would like more information about this topic, or are curious about how I can help you with your next move, feel free to get in touch with me or my team. We look forward to hearing from you soon.

Owning a pool may offer some perks, but don’t forget to keep the associated expenses in mind before diving into this decision.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out my YouTube channel here!If owning a pool is one of your homeownership goals, you must be prepared for the associated costs. Buying a home that already has a pool eliminates some expenses, but you’ll still need to budget for upkeep. Chlorine and saltwater pools both require regular maintenance, which will either involve cleaning them yourself or hiring someone to do it for you. Opting to install a pool yourself also carries some challenges. Building a pool on your property will cost tens of thousands of dollars, and you’ll also need to secure a permit with your city. Water bills, the cost of electricity to run the pump, and other similar expenses should be accounted for, as well.  These are a few items on the list. Here’s a list of a few more costs to consider.Homeowners insurance premiumsPool furnitureA heating systemCracks and leaks Will I get the cash back when I sell?If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

For any buyer, the home inspection is a vital part of the purchase process. Here are the five points to understand and follow as you progress through it.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out my YouTube channel here!Any buyer in search of a home should be aware of how the inspection process will unfold when the time comes to make a purchase: Here are five key points.1. Get a home inspection. It’s not enough to find just any old inspector—you’ll want to get one that’s certified. I have a list of long-established, certified inspectors I use that have kept up with state exams and who have made sure they operate with the latest standards.2. Make sure the inspector is checking off all items on the evaluation. There are hundreds of items in this report and they go way beyond just matters of cosmetics—behind-the-scenes items such as the plumbing, electrical, AC units, etc., will be included as well. The inspection could take between two to four hours, but you’ll want to be present. This is your opportunity to ask questions and to make sure all the boxes have been ticked off the list in both the interior and exterior of the home.The final walk-through is your chance to make sure that the house’s present condition is no different than how it was when you entered escrow. 3. Ask questions and ensure the specifics are covered. Above all else, you need the inspection to be clear and concise, leaving no room for ambiguity. The report will usually be compiled within 24 hours, and your real estate professional will go over the highlights of the inspection with you to make a judgment on what items need to be addressed, if any.4. Negotiate items in need of repair with the seller. Who’s going to be fixing those items? The seller may pay for the repairs, they may agree to a credit, or you may forgo making a request from the seller altogether. Safety issues such as fire alarms and detectors should be addressed before closing. Remember: Because the inspector can’t subsequently be held liable, anything that isn’t identified during the initial inspection becomes your responsibility to deal with.5. Do one last walk-through with your Realtor. This is your chance to make sure that the house’s present condition is no different than how it was when you entered escrow. If you have any questions about today’s topic or anything else real estate-related, please reach out to me by call or text at 619-379-7664 or by email at KWSmith3443@Gmail.com. We look forward to hearing from you!

Real estate deals fall apart for many different reasons. Here are five of the most common. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price EvaluationReal estate deals can fall apart for many different reasons. Here are a few of the most common:1. The deal falls apart pre-contract. If a buyer likes a home a lot but lowballs their first offer, a lot of sellers will decide right then and there that they won’t accept the offer. However, keep in mind that a real estate professional should be able to guide you in making a fair offer.2. The deal falls apart post-contract. The offer has been accepted at this point, but then maybe the buyer decides they don’t want to buy it anymore. It could be because of something found in the home inspection that you can’t come to an agreement on. A contingent offer isn’t always acceptable to a seller. 3. Contingencies get in the way. Maybe the buyer is dead-set on selling their current home before buying the new home. A contingent offer isn’t always acceptable to sellers, because a lot of the time, it’s out of our control. If the buyer does have a good chance of closing on their home, you can feel better about it.4. The buyer is denied financing. This is another automatic deal-killer. Maybe the buyer loses their job, has health issues, or made a large purchase before the loan was finalized. This could all lead to them not being able to get the financing they need.5. The final inspection. I’ve seen this happen plenty of times before. A buyer will come in to look at a home on the final day before closing and find out that certain repairs were not completed properly or there is a structural issue that is uncovered. These are just some of the reasons a deal may fall apart. If you have any questions for me about buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

If you think you have to sell your current home in order to buy your next one, a bridge loan or a cross-collateralization loan can help you buy now without going through that process.Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Check out my YouTube channel here!Recently, a client of mine who’s getting ready to put their home on the market found the home they want to purchase next. It’s a beautiful home and it’s exactly what they’re looking for, but when I made the call to the home’s listing agent to tell them about our offer, they told us the home already had two other offers.My client’s original offer was contingent on the sale of their current home, but they didn’t want to let this opportunity pass by, so we elected to pursue a couple of alternative loan options that will allow them to buy the home now without needing to sell their current home first: the bridge loan and the cross-collateralization loan.What are these loans? How can they help you if you’re in a similar situation as a buyer? Today I’ve brought in Jay Rodriguez of New American Funding to answer these questions for you.With a bridge loan or a cross-collateralization loan, you won’t need to sell your current home first in order to buy your next one. First, a bridge loan is a form of short-term financing that’s available on a single property. Essentially, it allows you to receive funds from a property you already own and repurpose it for, say, buying another home. Keep in mind that not every lender can offer a bridge loan, though. A cross-collateralization loan allows you to buy a property while using one or more other properties you already own as collateral. This is especially helpful if your equity is tied up in the home you’re trying to sell. With this loan, you can put liens against both properties and leverage the equity of the property you already own to buy the new one without going through the hassle of selling it first. If you have any more questions about these loan types, don’t hesitate to reach out to Jay or me. We’d love to help you.