Podcasts about houses for sale in san diego

How will increasing interest rates impact the mortgage market? Most of you have heard that the Federal Reserve has increased interest rates and will continue to do so throughout the year. But what does it mean when the Fed raises rates? Today I'll discuss what impacts we've observed. When interest rates increase, it doesn't necessarily mean that there will be a direct impact on mortgage rates, which is a concern that many have in today's market. It just means that the rate at which banks lend money to each other has increased. In this particular case, the Fed has been raising rates to slow down the economy. That trickles down into the mortgage industry. “Though rates aren't in the twos and threes anymore, they're still historically low.” Part of people's shock comes from the fact that we've been used to rates being so slow. Though rates aren't in the twos and threes anymore, they're still historically low. Our rates are currently in the fours; the average mortgage interest rate is 6.5%. Back when I started working with loans in 1999, people were refinancing from 10% down to 6.5%. So what does this mean for you? Well, if you're looking to lower your rate back down to 2% or 3%, it's not going to happen in this market. Those times are long gone. Even still, you could use this time to refinance your loan to get rid of your mortgage insurance. Just because rates keep going up, that doesn't mean your ship has sailed when it comes to homeownership—it is still a good time to buy a house. The alternative is to continue renting, and rent prices have been through the roof. Why pay someone else's mortgage when you could be building your own equity and enjoying the tax deductions that come with homeownership? If you have any questions about buying a home in our current market, give me a call or send me an email. I'd love to speak with you.

A quick overview of all the steps involved in the home-buying process. Today we wanted to briefly go over what happens during the home-buying process for those of you not familiar. First, you need to connect with a knowledgeable and reliable real estate agent in your buying market (we hope you'll choose us if you're buying in San Diego!). Your agent will help you get started with the pre-approval process. The pre-approval will determine your maximum budget for a new home.  Once you receive that letter from your lender or local bank, you can start shopping for houses. Your agent will send you the information on homes with open houses or private showings available, and you'll go see the ones you like best. Once you fall in love with a home, it's time to make an offer, which your agent will write for you. Once you get an offer accepted, you'll go into escrow, and that's the time when you'll do a home inspection, an appraisal, and finish your fully underwritten loan process.  “You need to connect with a knowledgeable and reliable real estate agent.” Once all that's done, you'll get a clear to close from escrow, and they'll send a notary to your workplace or current home so you can start signing all the necessary documents. Once it's been recorded that you've signed all the documents, you can pick up your keys, or your agent will bring them to you. Then it's time to move into your new home!  If you have further questions about the home-buying process or any other real estate matter, please feel free to call or email us. We would love to help you.

Buying low and selling high is a great strategy in real estate. The strategy of buying low and selling high works with stocks, collectibles, and real estate. Today I'm sharing three tips for buyers and three tips for sellers to help everyone buy low and sell high in real estate. Three tips for homebuyers: 1. Buy in an undervalued neighborhood. Eventually, those homes will become highly desirable, and you'll have bought them when they weren't valued as much. 2. Consider cosmetic repairs. Some day you'll see the return on investment from those improvements, and in the meantime, the things you enhanced will be to your taste. 3. Don't wait any longer. Prices won't decrease, so now is the time to buy.  “Buying low and selling high is the best way to win in real estate.” Three tips for home sellers: 1. Cash out now. Prices are high, so now is the time to sell. 2. Take emotion out of it. It's difficult to do, but if you can sell unemotionally while you're ahead, you may be able to move into a house at a higher price point or in a nicer neighborhood.  3. Work with a professional agent. Working with a licensed, professional real estate agent will ensure you get a proper home evaluation and help you fully understand all the numbers.  Buying a property at a lower price and then selling later for a higher price is the best way to win in real estate. If you have questions about buying low and selling high or any other real estate-related matter, call or email us. We would love to help you.

If you're buying and selling real estate in San Diego, use a good agent. I am a preferred real estate agent, and I love what I do. I love the feeling of giving first-time homebuyers their new keys. I especially love to help veterans, families, and people who want to increase their wealth. My team is here to make it happen. Why did I choose San Diego, though? San Diego is one of the most beautiful growing metropolitan areas in California. It has gorgeous beaches, palm trees, and lots of sunshine. San Diego has opportunities, people who want to follow their dreams, and a very strong economy. Dreams really do come true here. Make sure you use a Realtor who is knowledgeable about the area. I can help you to find your next home in this beautiful city. If you have any questions, feel free to reach out to me at (757) 773-0023. I look forward to hearing from you.

Let's find out if right now is a good time for you to refinance. Today I'll give you a quick update on what's going on in the real estate market. Thankfully, COVID now seems to be somewhat tamed for the near future. This has caused a resurgence of pre-COVID market conditions like pricing and interest rates. With that said, rates have gone up, but because of the Russian invasion of Ukraine, rates dropped again by 0.5%. This drop has created a short window of opportunity to refinance for those with a mortgage in the 4% range. I don't think this rate drop will last long because it was artificially created by macroeconomic factors like the war and the sanctions imposed on Russia. Let's talk through your situation and see if it makes sense for you to refinance. Just because rates went up, it doesn't mean that you lost your opportunity. Give me a call at (619) 948-2996. I look forward to hearing from you.

Here are three reasons to get off the fence and buy a home now. If you've been waiting to purchase a home in beautiful San Diego, today I'll share three reasons why you should buy now: 1. Home prices are projected to increase by another 10% this year. 2. It will take at least five years for our supply of homes to catch up with buyer demand. This is assuming more buyers don't enter the market during that time, which won't be the case. 3. We're not headed for another housing crisis. Unlike back in 2008, when the housing market crashed, we don't currently have the adjustable-rate mortgages that contributed to the market downfall, and people aren't defaulting on their homes. Let's get you into a house as soon as possible. If you have any questions about the market or how to get the buying process started, reach out to us by phone or email. We'd love to help you.

Why now might be the best seller's market ever in San Diego. You might've heard about how hot our San Diego market is, especially if you don't live in the area. We are here to tell you that spring 2022 is the best time to put your home on the market. Not only will you get top dollar, but you'll also get the best terms possible. Now is truly the perfect time to sell. We are experiencing the lowest inventory ever in the San Diego market. Sellers are getting so much exposure, and they don't have to compete against any other houses. They are likely the only home in their neighborhood at the time. We have less than one month of inventory, and our demand is through the roof. Buyers are doing anything they can just to own a home like yours. This is possibly the best seller's market in history, and sellers will continue to have the upper hand throughout the coming spring. Interest rates are also rising, and that is pushing some buyers out of the market because they can't afford as much as before. As interest rates continue to increase, putting your home on the market now will give you the best chance to get multiple offers. “Buyers are doing anything they can just to own a home like yours.” Our team has some amazing strategies for you to use, whether you're selling your primary residence or investment property. We can help you strategize the best way to sell your home and get into your next one while accomplishing your goals and putting money in your pocket. If you have any questions about real estate, feel free to call or email us. We're always happy to have a conversation, and if you know anyone we could help, we'd love to talk with them, too.

Here are a few ways you can take control of your credit score. If you're thinking of buying a house or refinancing, the first thing you need to do is take a hold of your credit score. The higher your score, the better your rate and the more favorable your terms. I'm not an expert, but I have a good grasp of what will affect your interest rates. So today I want to share a few tips to help strengthen your credit: 1. Never pay off your collections. A lot of people think that paying off their collections will improve their credit when it's usually the opposite. Those collections are usually dormant, and when you pay them off, they reactivate that account. Instead of helping your score, it ends up hurting it. If you're going to pay off a collection, make sure whoever holds that account promises to give you a deletion letter. That way, not only will it show as paid off, but it will also completely disappear from your report. 2. Don't max out your credit cards. A lot of people max out their credit cards to get the funds towards a down payment. That's a huge mistake. As you max out those cards, your score will go down, which will hurt your mortgage rate. “We're not like traditional banks; we don't just say yes or no.” 3. Don't close your credit cards. A lot of people think closing their credit card accounts will improve their scores. It usually won't because there are three main factors within these accounts that determine your credit: how long the account has been open, the payment history, and the balance versus the limit. As a general rule of thumb, try to keep your balance under 30% of the limit; however, every card is different. We use a credit simulator to tell us what will happen to a client's score depending on what they do. When you're thinking of buying a house or refinancing, it's always good to sit down and run your situation using our credit simulator. That way, you can know what you need to do to increase your score as much as possible. Conventional loans are extremely credit-driven, so whether you're refinancing or purchasing, you can get a killer deal if you have a 700 credit score. If you're not quite there, we can advise you on how to improve your score. If there's a problem that's above our pay grade, we have a few different collection companies we can refer you to. We're not like traditional banks; we don't just say yes or no. If you don't qualify with us, we will set up a roadmap to help you qualify in the future. If you have any questions or need help with your credit, give us a call at (619) 948-2996 or send us an email. We'd love to talk with you.

Three refinancing mistakes that you should try your best to avoid. Today I want to talk about the three biggest mistakes to avoid when you refinance. Everybody is talking about rates right now; they're all over the place. That's why I wanted to talk about what you should avoid if you plan on refinancing: Mistake No. 1: Not optimizing your credit score. Most refinances are credit-driven, so optimize your credit any way you can. If you have a little bit of cash, pay down some of your cards to increase your FICO score and get a better rate. It's really easy to do. “The money is yours, but you'll be paying the debt for a long time.” Mistake No. 2: Using equity for the wrong reasons. I see people do this all the time. They come to me and ask to refinance so they can go to Hawaii and buy a Mercedes. The money is yours to do with what you want, but be aware that you will be paying that debt for a long time to come. I advise you to use that equity to pay off high-interest debt, like credit cards. Whatever you do with your equity, be careful and smart. Mistake No. 3: Refinancing too often. Most of the time, this isn't the borrower's fault. It happens because they don't have someone advising them correctly. Don't plan on refinancing again two years later because you don't know what interest rates will be like then. Remember that every time you refinance, you have to pay fees. If you refinance too often, you're just adding to the cost. Really, everything you can do with a refinance can be done at the same time—you can switch from FHA to conventional and get equity out with a single refinance. Make sure you think about why you want to refinance before you do. If you want help or advice, I'd be happy to strategize with you. Just give me a call at 619-948-2996 or email me. I look forward to talking with you soon.

Here's what you'll need to factor into your budget if you're buying a home soon. If you're purchasing a home, you're probably aware that you'll need a down payment and a mortgage payment, but you might not be aware of all the other costs involved. Today we're answering some common questions surrounding the amount of money you need to buy a home. Do you pay out of pocket for your buyer's agent? The simple answer is no. All of the payments made to the buyer's agent that you choose to work with have already been predetermined by the seller and their listing agent when they sign that agreement. All the work a buyer's agent does for you upfront, like setting up your home search and writing offers, is absolutely free of charge to you as a homebuyer. “The appraisal is required by your lender if you're paying with a loan.” Does it cost money to get pre-approved? Again, the answer is no. You can get pre-approved with as many lenders as you like, and it won't hurt your credit score. What costs am I responsible for? Home inspection fees, for one. That will cost you anywhere from $300 to $700 and provide you with a full list of anything that might be wrong with that property. It also gives you great negotiating power in case there are some larger ticket items to take care of. The home appraisal is something else you'll have to pay for. It's required by your lender to ensure the value of the property. They use the appraisal as a kind of checks and balances system to make sure they don't overpay for the property. Finally, we have closing costs. They'll run you about 2.5% of the purchase price of the home, on average. They include prorated property taxes and HOA fees, your credit report, lender fees, title fees, escrow fees, and more. I hope you had some questions answered today about what it costs to buy a home. If you have any other questions related to buying a home or real estate in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are five reasons why you should buy this holiday season. If you're looking to buy a home, you've probably been hearing both sides of the story: It's a great time to buy, but it's also hard for buyers in our seller-driven market. It can be daunting to get started, but that's why I want to share five reasons to buy this holiday season: 1. There is less competition. So many buyers put the house hunt on the back burner this time of year. We'll probably see the market heat up again in February of 2022. Right now is the sweet spot. 2. Rent is going to increase. If you're a renter in San Diego, you've probably noticed that your landlord is raising the rent. If not, they probably will soon. Nationwide, we are seeing a rental increase of about 2%. Remember that if you rent, 100% of your payment is interest because you'll never see it again. “Right now is the sweet spot.” 3. Interest rates are going up. Rates are always rising and are scheduled to rise more in 2022. They determine which homes you can afford and how much you pay monthly. Just half a point of interest can increase your monthly payments by $50 to $100. 4. Home prices are rising. Not only are we dealing with inflation, but we also have a shortage of inventory. Basic supply and demand means that home prices will keep rising. 5. I don't want you to miss out. Real estate helps you build wealth. Every month that you own a home, the value rises, and all that equity will eventually go back into your pocket. There are so many strategies we can use to help you win your new home. If you're looking to buy, give me a call at (209) 342-7262, and we can look at which strategy works best for you.

Here's how homeowners in forbearance can purchase or refinance again. If you were enrolled in a forbearance plan, can you buy or refinance now that you're out of it? You can, but there are some rules you need to know. Every lender has slightly different standards. If you're still in forbearance, you cannot buy or refinance. A forbearance is a financial hardship, so why would they give you another loan if you can't pay your first one? If you were in forbearance and now owe back payments, you have a couple of different options. First, you can pay it back in full. If you can't, they can put the balance on the end of your loan. It's like a “second” mortgage that sits at the end of your current mortgage. When you refinance or sell, you'll have to pay it back in full. You also have the option to set up a repayment plan with your lender that slightly increases your payment each month. “Mortgage brokers can help you shop around for different lenders.” After you've figured that step out, you'll be able to refinance again. Most lenders have a three-month rule, meaning you have to have made three consecutive monthly payments to qualify for another purchase or refinance. FHA, VA, and conventional loans each have different requirements and so do mortgage lenders. Mortgage brokers can help you shop around for different lenders with different products and rules. If you have any questions about your situation, forbearance, or mortgages in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here's some helpful advice if you're thinking about becoming an investor. Are you thinking about becoming a real estate investor? The key mistake that a majority of investors make is only looking at the current cap rate. The cap rate is a cap amortization of the property. It's a number that determines the profitability of a property.  However, it's not the only cap rate you should be looking at; there is so much more involved when looking for an investment property. These days, the eviction moratorium is over, and many landlords are going to start getting rid of tenants and selling properties. This could lead to great opportunities for the right investor. I recommend looking at the projected cap rate of a home you're interested in instead.  “There is so much more involved when looking for an investment property.” Go to rentometer.com to check the current rental market value of the property you're thinking about purchasing. If there are tenants currently in the property, you may want to consider a “cash for keys” offer to get them to vacate. You can pay them to get out of the property so you can buy it and find new tenants. Then you're well on your way to becoming a profitable real estate investor. If you have questions about this topic 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. Ciao!

Buyer's remorse is common, but you can't let it ruin your home purchase. With the incredibly competitive nature of today's market, many buyers are having to go above and beyond to get their offers accepted. After finally being able to secure a home, though, some people are experiencing a hefty amount of buyer's remorse.  In San Diego, buyers write an average of six offers before one is accepted. That knowledge should make you feel better if you're struggling in our market, but you may still be wanting to call off the deal. I heavily advise against this: If you are feeling buyer's remorse, do not cancel escrow. You'll be right back where you began, and you'll be missing out on the incredible home appreciation we've been seeing. “If you have already found the home of your dreams, don't make the mistake of backing out.” Homes purchased in November 2020 have already gained 5% to 10% in value. Due to the high cost of building materials, low interest rates, and incredibly low inventory, these rising prices are likely to continue. If you buy now, you'll have anywhere from 10% to 20% equity in your home within a few years. So, if you have already found the home of your dreams, don't make the mistake of backing out. If you have any questions about our market or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

Here's what you need to know about bank statement loans. I keep getting calls from people asking me about bank statement loans. Are they stated loans? Can anybody get them? The answer is no. Bank statement loans are loans for self-employed people. As we all know, if you're self-employed and need to show your taxes, that's a way to show your income. The alternative is getting a bank statement loan. You show 12 months of your deposits (i.e., bank statements), and we take those deposits and figure out how much you get to keep. This is accomplished through your CPA. Rates for bank statement loans tend to be a little higher than prime for conventional or FHA loans, but they're a great alternative if you're self-employed. In many cases, they allow you to go up to $3 million, and everything is based on your deposits instead of your taxes.  If you're self-employed and in need of financing, give me a call or send me an email. I'd love to help you.

Here are the two ways you can buy an investment property in today's market. With everything that's going on with real estate, many people want to know how they can buy an investment property right now. There are two mains ways to do it: The traditional way. You use your tax documents or W2s to show your income can satisfy the debt-to-income requirements for both your personal property and the investment property. You cannot use future rent for this unless you're buying a duplex that already has tenants. Non-qualified mortgage loan. This is the easiest way to buy an investment property. It becomes a standalone property, and whatever income it's producing is what you use to qualify. It doesn't matter how much money you make— if the property can be rented out for $2,000, that's the number we use to get you qualified. For this option, you'll need at least 30% for the down payment. “Property values are through the roof.” Many people are cashing out their investment properties right now to buy other properties because property values are through the roof. So yes, you can buy an investment property in our present market if you have the down payment, which will be between 10% and 30% down. Just remember that you can't use FHA or VA financing. If you have questions about buying investment properties or any other matter, you can reach me via phone or email. I hope to hear from you soon.

Changes in capital gains taxes may be on the horizon. President Biden has been talking about potentially changing parts of the capital gains tax, particularly with 1031 exchanges. This could hugely impact the real estate market, and unfortunately, it seems the impact might be a negative one. Based on what he proposed, capital gains taxes would essentially double. We're already having inventory issues, and the only hope we really have comes from investors. However, people don't want to pay capital gains tax on 1031 exchanges, so this could push investors out of the market. Additionally, 82% of people who do 1031 exchanges are small business owners. So, this change isn't affecting multimillionaires with hundreds or thousands of properties — it's affecting families who are trying to invest. “If you've been thinking about selling off an investment property, now may be the time to do so in order to avoid these steep capital gains tax hikes.” So, if President Biden's proposal becomes a reality, capital gains taxes would nearly double from 20% to 39.6% when people sell investment properties. It's going to affect a lot of people, regardless of income level, who invest in real estate. If you've been thinking about selling off an investment property, now may be the time to do so to avoid these steep capital gains tax hikes. If you have any questions or would like to know what these proposed changes may mean for you, feel free to reach out to me. I look forward to hearing from you soon.

A continuation on the topic of the current state of the market. This is a continuation of the topic about the state of the market right now. A Zillow economist wrote an article recently forecasting that 6.4 million homes would be sold in 2021 in the U.S. They now also expect homes to appreciate by 10.4% nationwide by December 2021. Watch out for the data by different economists that you see on TV because Southern California’s different. We might see 6% to 7% growth. The biggest problem I mentioned last time is that inventory is so low. We’re selling more homes than we have on the market. That’s why you’re seeing increasing prices and many multiple-offers scenarios. You are only able to find a home on the market without multiple offers if it’s overpriced. Data shows this would be anything from $765,000 to $840,000. “We’re selling more homes than we have on the market.” A lot of people are asking if we’ll still have affordable homes. The answer is unfortunately no, but keep looking. The median price going up so much is decreasing affordability. With prices going up, people want to know whether we are in a bubble or not. The answer is simply no, this is not a bubble. Prices will continue to rise, especially now that everybody’s getting the vaccine. People are understanding that working from home is the new norm.  When you spend more time at home, you want a better home, and that’s why we’re seeing the spike that we’ve seen in the last few months. We have to embrace the change and look into a property that can offset our costs. What you want to do is be smart about buying, and get a property that has an additional unit. Next time I’ll explain what you can do with that. Feel free to reach out to me if you have any questions about the market, where we’re headed, or how to offset the cost of your mortgage. Talk to you soon.

These are the ways we help our buyer clients write competitive offers. Since the market here in San Diego County (and pretty much all markets across the country) has been such an extreme seller’s market, many buyers are having serious difficulties in getting their offers accepted. Inventory levels are drastically low, and many agents across the nation have been running at least 12 offers before a seller accepts. Fortunately, we at the Dream Homes Team have put together a strategy that will help buyers get their offers accepted. Today I’ll break it down for you by walking you through a residential purchase agreement (RPA) and showing you what we do to increase your chances of winning a bidding war. Feel free to follow along in the video above or else use the timestamps below to navigate the discussion at your leisure: 2:09—Why is it so difficult for buyers in the first place? 3:37—The residential purchase agreement 4:27—Modifying your finance terms 5:44—Removing contingencies 7:08—Other terms 9:32—Natural hazard disclosure 10:27—Government requirements and retrofit 11:21—Time periods, removal of contingencies, and cancellation rights 12:23—Writing a letter to the seller 13:34—Wrapping up today’s topic These are just a few of the tips that we recommend our buyers use when making an offer. If you have any questions or would like more details on our buyer strategies, don’t hesitate to reach out to us. We’d love to help you.

Here’s why you should work with a mortgage broker instead of a big bank. Today we’re looking at the major differences between working with a mortgage broker and working with a direct lender or bank. When I say “bank,” I’m referring to banks like Wells Fargo, Chase, etc. The main advantage of working with a broker is that their hands aren’t tied like the bigger banks’ are. If you walk to your local bank branch and try to refinance with them, the answer is black and white. They can either help you or they can’t. “The big banks give us better rates and terms, and we pass those savings to you.” When working with a broker, it’s not like that. If we can’t qualify you now, we can help give you guidance and show you the concrete steps to take to get your financial health to where it needs to be to qualify in the future.  Another benefit of working with a broker is that we make the banks compete for your business. They give us better rates and better terms, and we pass those savings along to you. If you have any questions for me about working with a broker or anything else related to refinancing, interest rates, or mortgage in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s what’s happening with interest rates and why you should act soon. What’s happening with interest rates? That seems to be the hot topic of conversation everywhere I go these days. Rates did increase recently; they’re no longer in the low twos, but they’re still in the high twos and low threes, which are still excellent rates! If you’ve been on the fence about refinancing or buying a home, now is the time to do so.  Rates will only rise from here, but you haven’t missed the boat yet. If you have debt, it may help to pay some of it off first. If you have an interest rate in the 4% range, you can still refinance to a lower rate. If you bought a house or refinanced with a VA loan and your rate is 3.8% or higher, do something about it. If you already received an interest rate from another lender, reach out to us so we can help you compare that to other options. “If you’ve been on the fence about refinancing or buying a home, now is the time to do so.” Now that the pandemic is beginning to ease, the economy is recovering, which will cause inflation. Talk to your lender or reach out to us for a strategy call to see if it makes sense for you to refinance.  Shoot me a text or give me a call to see if refinancing is a smart move for you or if you have any questions. I would love to help with all your mortgage needs.

Here are two more critical steps of the home-buying process. Today Ryan Shammam, Desirae Morries, and I are continuing our discussion with two more important aspects of the home-buying process: signing loan documents and funding the loan.  Let’s begin with step No. 7: signing the loan documents. At this point, the notary makes an appointment with the escrow company to come to your home or office so that you can sign the necessary papers. This is when you’ll see what your monthly payment will amount to, so be sure to pay attention to the information given to you. “Don’t make any large purchases right before closing.” When the loan goes live, by which we mean when you have an accepted purchase contract, your lender will have to disclose all of the terms to you within three days, including the interest rate your lender will charge you. At this point, the only things that are subject to change from when the loan is disclosed to the closing table are things like the title and escrow fees, which are outside of the lender’s control. That is, unless there’s some change to your credit, don’t make any large purchases right before closing. We’ve seen loans get denied after clients had bought things like iPhones and new furniture before the purchase process was fully completed. To avoid the false promises that many companies make regarding low, low rates, buyers should seek out a direct lender. When they go to price out your loan, they can see what all the major banks in the US are charging. A direct lender can choose whoever has the best pricing for you so you can lock in that rate with them. That leads to step No. 8: funding the loan. There are different kinds of funding that lenders use. Sometimes they’ll send the documents out and after the borrower signs them, they’ll wire their money in. After that time, the escrow company will contact the lender. Then begins the roughly three-day period when the lender has to balance and officially record. However, Ryan and his company do all of that balancing in advance. That way, when the documents go out, the wire goes with them, which allows the lender to begin recording that day. As always, if you have questions about buying a home or have any other real estate needs, don’t hesitate to reach out to me. I’d love to speak with you.

Let’s continue our discussion about the steps of buying a home. Today I’m joined once again by Ryan Shammam and Desirae Morris to talk about two more critical steps of the home-buying process: scheduling an appraisal and ordering homeowners insurance and the home warranty.  What is an appraisal? An appraisal is when a third-party appraiser visits a home to determine its value and whether or not comparable sold homes can support the purchase price. The appraiser already has a copy of the purchase contract, so they know how much you’re buying the home for and they typically try to meet that target price.  In addition to evaluating the home, the appraiser is there to ensure the home has no obvious health and safety issues. From the lender’s standpoint, they want to ensure that the property is in a condition to be financed and doesn’t need any immediate work. About 95% of the time, the appraisal comes back without any issues.  Now, onto ordering homeowners insurance and the home warranty. More often than not, the seller pays for the home warranty. Desirae’s go-to home warranty company, Home Warranty of America, offers a 13-month warranty program, and they always negotiate for the upgraded plan for their buyers. That way, you can take advantage of a low service call fee and potentially get your appliances replaced if need be—appliances that would cost a lot for you alone to replace if they broke down. “In addition to evaluating the home, the appraiser is there to ensure the home has no obvious health and safety issues.” If you work with Desirae’s team, you’ll work with their transaction coordinator who’ll handle all the fine details of the transaction, ensure the home warranty is ordered, and provide all of that warranty’s information prior to the close of escrow.  They’ll also guide you as far as your homeowners insurance goes, which can vary depending on whether you’re buying a townhome, single-family home, or condo. It helps to check with your car insurance company to see if they can get you a good bundle rate. That will cover everything on the interior of your property if it’s a condo because usually the condo association covers everything on the outside. If it’s a home, your policy will cover everything inside and out.  Remember that from the time you send an initial escrow deposit to the contingency removal phase, you can simply cancel the contract and get your earnest money back if there’s a problem.  As always, if you have questions about buying a home or have any other real estate needs, don’t hesitate to reach out to me. I’d love to speak with you.

What’s it like being a homebuyer in 2021? Today we have your answers. Today I’m joined by agents Anja Hollands, Javier Hernandez, Desirae Morris, and Ryan Shammam for a discussion focusing on the position of homebuyers in our market. What’s changed since January 2020? What can buyers expect from the home-buying process? What should they consider to be most important among their wants and needs? All these questions and more will be answered.  Feel free to watch the video above in its entirety, or use these timestamps to skip ahead to various sections at your leisure:  0:00—What are buyers looking for in comparison to last year?  1:00—There are fewer luxury buyers but significantly less inventory  1:57—What should be a millennial buyer’s first step in the buying process?  4:02—The importance of discussing what’s important to you as a buyer  5:15—Breaking down the pre-approval process  7:15—What happens after you get a pre-approval? 8:58—Wrappings things up  As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

I’m sharing seven questions buyers need to ask their agents before buying. Our real estate market is going through an interesting time with low interest rates and inventory, so today I’m sharing the key questions every buyer should ask their agent before submitting an offer: 1. How long has the home been on the market? When looking at homes or comps, real estate agents should always check the history. Not only will the MLS tell us how long the house has been on the market but also how many times it’s been on it and at what price. This is a great indication of whether it’s priced correctly or if it’s been reduced a few times. 2. What are the comparables? You want to know what homes similar to this one in area and floorplan have sold for and how long they were on the market. You want to look at what price they started at and what they sold for. An agent should also look deeper into whether there were any concessions from the seller to the buyer. 3. Are the sellers behind on their property taxes? This will come up when you open the preliminary title report and when in escrow. Knowing this can give you leverage to possibly get a better deal. “When looking at homes or comps, real estate agents should always check the history.” 4. What’s under the carpets? This is crucial because you need to know if there’s any damage to the foundation. Once we were looking at an older house, and we didn’t see any cracks at first. However, when we pulled up the carpets, there was a crack in the foundation, which could have cost several hundred thousand dollars to repair, but we minimized it by bringing in a structural engineer to help. 5. How much are the standard utility costs? What will it cost you for water, electricity, and gas? Is there solar power in the home, etc.? You need to know these expenses before you buy. 6. How did the neighborhood fare during the 2008 crisis? If something similar occurs again, you need to know what may happen. 7. What is your negotiation strategy on the buyer’s side? The answers to some of the above questions could help your agent negotiate shorter time periods for various things in the transaction. The loan contingency is a huge one; the fewer days you take for the loan contingency, the better you’ll stand up against the competition in this extremely competitive spring market. If you have questions or real estate needs, please call or email me. Let me know if you need a vetted vendor such as a handyman, contractor, roofer, plumber, and so on because many people are fixing up their houses in the springtime, and I can get you connected with the best. I would love to help you.

If you’re a first-time buyer, this is a must-watch discussion tailored to you. Today I’m sharing a segment of an awesome discussion I had last month with some of the rockstar members of The Dream Homes Team. As part of our first-time homebuyer’s seminar, we not only wanted to empower buyers who might be on the fence but also to dissect this high-demand, low-supply market of ours. Who, exactly, is buying in the San Diego area? Joining The Dream Homes Team is Ryan Shammam from Cross Country Mortgage to explain the ease with which most homebuyers can get qualified right now.  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 skip to topics that interest you most:  0:39 — Introducing the topics to be covered in this video 2:57 — Millennials (in particular, young professionals and growing families) are fueling our red-hot San Diego market, as well as an influx of VA buyers  3:50 — What’s incentivizing this latest wave of homebuyers?  4:40 — How we help our buyers understand their purchasing power and capitalize on it  6:10 — How easy is it to get qualified for a home loan these days? 7:44 — Some amazing loan products that make homeownership an attainable reality for many  I hope you found this discussion helpful. If you have questions about the market or want more information on the home-buying process or how to finance a purchase, don’t hesitate to give us a call. We look forward to hearing from you.

I have six reasons for you why spring is an ideal time for 2021 home sellers. Right now is probably one of the best times to be a seller that I’ve ever seen, and there are six reasons in particular why you should consider an early spring home sale: 1. There’s less competition among sellers. With low interest rates, demand from buyers remains high. With lower inventory, you’ll stand out more to these buyers. 2. More serious buyers. The homebuyers out there in this type of market are serious. 3. Photos and videos look great right now. This will separate you from your competition. A lot of out-of-town buyers are looking to buy here in San Diego, and if we’re able to take high-end video or 3D imagery of a home, it gives us a much stronger chance of enticing them. “You have a month or two now to get your home ready for the market.” 4. Corporate transfers are common right now. January is the big month for corporate job transfers. There are a lot of people moving in and out of California around this time of year, so it’s a great time to get a home on the market with increased traffic. 5. Better customer service from vendors. You’ll get a higher quality of service and more opportunities because they aren’t as busy this time of year. 6. More time to get top dollar. You’ll have at least a month or two before the spring rush of inventory comes on the market. This gives you more time to prepare the home, get dialed in with photos and videos, and nail down your pricing. These are just six reasons why you should consider an early spring sale. If you want to know more about what’s going on or if you need my assistance in any way, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Finding a coach is very important in this industry. Let me share why. I recently had an interesting conversation where a gentleman from eXp called me about one of my listings down the street. He said, “Hey Carlos, I saw your sign was down and I thought I’d give you a call and let you know that you might want to call the company to come put it back out.” I’d never met this person and didn’t know his name, but I thanked him. He then continued, “I also wanted to pick your brain. I see that you’re doing such an amazing job here in the beach area and around San Diego—what are you doing?” I told him that I get up every day being thankful for what I have. I work out, I kiss my wife and daughter, and then I do whatever I need to mentally and physically feel good. After that, I get dressed for the day and start calling people to talk to them, offer services, and ask how I can help them today. Then I asked him, “What do you do?” He had to think about it. “With someone helping you to improve, you’re better able to help others.” That’s why it’s so important for those of us in the business to get a coach. I’ve been a coach for nearly 10 years, not only spiritually, physically, and mentally, but also here in my business. Getting a coach will also help your clients. Think about it: Pro-athletes are talented, but it takes the skilled eye and guidance from a coach to take them to a victory. With someone helping you to improve, you’re better able to help others. That reminds me that I was recently listening to a great book while on a road trip, “Think and Grow Rich” by Napoleon Hill. In it, the author said that whatever a man can conceive, he can achieve. However, you have to consider what it is that you truly want, and you need to write it down. You have to be specific, though—instead of writing down that you want a bunch of money, come up with a concrete number and consider what you’re willing to do for it. How much time and energy are you willing to commit to making that goal a reality? Things don’t just happen because you want them to. If I can ever help you improve your business and help you reach your goals, don’t hesitate to reach out to me. I’d love to help you.

Here are some important points to know about a reverse mortgage. Lately, I’ve been receiving a lot of phone calls and emails from clients who have questions regarding reverse mortgages: Are they safe? Should I get one? Do I even qualify? Due to all the intricacies of this topic, I’ve asked our team’s reverse mortgage specialist, Tim Baudis, to help provide an informative overview: Q: What’s needed to get a reverse mortgage? Can anybody get one?  A: No; presently, you need to be over the age of 62 and have a certain equity position in your home to be eligible for the loan.  Q: What’s the benefit of a reverse mortgage?  A: There’s a bunch of different benefits, but a few of the main ones include the fact that there’s no income or credit requirement. You can take cash out of the home and choose whether or not to make a payment. Here’s another huge perk: Interest rates are in the 2s right now, which is record-breaking.  Q: Can I still qualify if I have bad credit?  A: Absolutely; even if you’re facing a foreclosure situation, you can still qualify.  Q: It can’t be perfect, right? What are some of the drawbacks?  A: Truthfully, there aren’t many drawbacks, and that’s because today’s updated reverse mortgage is a far cry from the troublesome old version (e.g., investors taking the title of your home while you get charged exorbitant rates). This loan product has been taken over by the Federal Housing Administration, which, along with the Department of Housing and Urban Development, now guarantees and insures it. We’ve heard plenty of horror stories in the past, but the fundamental flaws of the loan have been fixed.  Hopefully, this information has been helpful if you’re someone who’s been contemplating a reverse mortgage. If you have further questions about this or any other topic, don’t hesitate to give me a call or send an email. I’d love to hear from you and have a more in-depth, one-on-one conversation.

Can’t afford to upgrade your home before listing? Here are your options. So you’ve thought about selling your San Diego home but it needs some work first. Generally speaking, homes that are in impeccable condition sell for more than homes that need a little work. By “need a little work,” I mean your property could use a paint job, bathroom/kitchen remodel, roof or foundation repair, etc.  What if you don’t have the funds to make these upgrades? Here are your options.  The first is a program we offer called Compass Concierge. With this program, if you have enough equity in your home, I’ll front the money to you to pay for the upgrades. I’ll also find vendors I know and trust to do the work. This will allow you to net way more money when you sell. Obviously, I know this can be a slight discomfort because you’ll have to rearrange your furniture so the work can get done and deal with people moving in and out of your home. However, I still highly recommend considering this option because I’ve seen properties sit on the market for a long time just because the owner neglected to do a simple paint job or something similar.  Making upgrades may seem like a lot to undertake, but if you spend as little as $5,000 to $8,000, you can get a return of $20,000, $30,000, or even $40,000. I’d love to show you how, so give me a call and I’d be happy to schedule a virtual or in-home consultation. “At the end of the day, my goal is to make as much money for you as possible when selling your home.” Your second option is to sell to an iBuyer. iBuyers are companies or investors that purchase homes for cash. You won’t get as much money selling this way as you would by listing your home on the open market, though, and that’s because these iBuyers need to make a return on their investment as well. This is a business, after all—not everyone can afford to put $500,000 into a home and not make any money in return once they sell it.  If your home has serious issues, I recommend selling to an iBuyer. Unfortunately, some homes are so old or in such bad shape that they’re simply not financeable. I buy homes for cash as well, so I’d be happy to give you as much money for your home as possible based on its condition so you can move on with your life.  Our team also offers complimentary staging, so if you decide to work with us and put your home on the open market, we’ll furnish it for free. We’ll also do everything else in our power to prepare your home for the market (photos, video, pre-inspections, etc.) and showcase it in the best light possible on all the major real estate websites.  At the end of the day, my goal is to make as much money for you as possible when selling your home. If you’d like to talk more about this topic or have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

What can we expect the coming year to bring? What a ride 2020 was! I’m sure many of you are glad that the year is behind us, but one of the things I took away from the experience was that we should be grateful for every moment we have. There are no guarantees, but we can definitely guess what this year will bring in terms of real estate. With the pandemic and everything else going on in 2020, many people weren’t paying their mortgages, and there were a lot of forbearances. I believe that we’ll see some short sales and foreclosures, but not too many. Why is that? Well, you have to remember that interest rates are low, meaning that the market quickly absorbs properties as soon as they appear. We can expect rates to stay as low as they have been through at least the first or second quarters of 2021; that’ll motivate the buyers to stay in the market and keep the economy rolling. There are lots of people taking advantage of the market by buying investment properties. If you’ve got some money, people always need a place to live. The southeast San Diego area remains a great place to invest in thanks to gentrification and the area’s location. “We can expect interest rates to stay as low as they have been through at least the first or second quarters of 2021.” That said, there are also still a lot of people moving out of the state, and we expect that to continue at a very high level here in 2021. I know quite a few people who are moving to Arizona, Idaho, Utah, and even North Carolina. Larger homes are still popular with those who are working from home. Bigger homes allow people to add things on, like ADUs, which can be used for gyms, office spaces, and more. Now, let’s talk about our goals for 2021. In 2020, I helped over 53 families make great moves, and my goal for this year is to help at least 75. I hired a director of client success to help us elevate our service to the highest level of any real estate professional in San Diego. If you’re looking to make a move or invest in a home this year, give us a call. We’d love to sit down for a short, 15-minute interview with you to see if we can help you reach your goals. Until then, we hope you have an amazing 2021! It’s going to be an awesome year.

May your holiday season be filled with joy and gratitude! From our family to yours, we wish you a very, very happy holiday! We know this holiday season will be a bit different from years past given the craziness of 2020, but it’s still a perfect time to reflect on what matters most and celebrate loved ones. Bella, Jeannete, and I want to say thank you for supporting our business; we’re grateful for the trust you place in our ability to help folks have smooth transactions as they move into and out of the San Diego area. We appreciate everything you’ve done for us in this year full of unique challenges, and we hope you and your families enjoy a marvelous finish to 2020 and have a fantastic new year! Stay safe, and remember: Life is 5% what happens and 95% how we react. Spread the holiday cheer with an attitude of gratitude, and have yourself a merry Christmas! 

This is how you can tap into the equity of your investment property. If you have an investment property whose equity you want to tap into, there are several ways to do so. The first is by using traditional financing, where you show your taxes, look at your Schedule E form, and see how much money the property is generating versus how much you’re making. Based on that, you either qualify or don’t. In short, your other options don’t automatically mean using a hard money loan. There are equity-based programs where we look at the income being produced by the property so it becomes a stand-alone entity. We look at your credit and the income being produced by the property to see whether you qualify for refinancing or cashing out. Right now, we’re going all the way up to 70% loan-to-value on these programs. If you want to talk more about your options as an investor, don’t hesitate to give me a call. I’d love to speak with you.

Here’s a quick, helpful overview of the home-buying process. As a homebuyer, how can you prepare for the competitive jungle that is our market today? Here’s a real-world example to help you understand the home-buying process: I’m anticipating an appointment with a buyer client who has already had his funds and creditworthiness verified by a trusted lender (the key first step). As a pre-approved buyer, he’s ready to take a serious look at properties—like the one I’m standing in for today’s video. I know he’s going to love this particular house, so together we’re going to write an offer on it. I brought my laptop so we can compare comps and come up with a strategic offer price. All the while, I’ll be establishing rapport with the seller and their listing agent to better understand why, exactly, they’re selling the house and which terms and conditions (beyond price) matter most to them. As your real estate professional, it’s imperative that I continuously ask the seller key questions so my buyer can craft the most appealing offer that best accommodates their needs. What happens when my buyer’s offer gets accepted? One of the first things the buyer will have to do is make what’s called an earnest money deposit (often referred to as “good faith” money). This is sort of like a verification of funds that lets the seller know they’re committed to getting a win-win deal done. A strong earnest money deposit is usually around 3% of the purchase price (e.g., $30,000 on a $1 million property). But that’s just one part of the contingencies; next up is the loan contingency, the lead time of which normally takes 21 days in the state of California. (By shortening this contingency period to, say, 17  days, you can make your offer stronger in the eyes of a seller, but just make sure you’re working with a great lender who can actually get the job done in time). Then come the general home and termite inspections, with the disclosure following close behind. Just like the loan contingency, these inspections have contractually allotted time frames within which they must be completed—the shorter you can make these time frames, the more you’ll put the seller at ease. Remember: Offer price obviously matters, but the seller might place even more value on the prospect of a quick close and fewer unknown variables. They may also respond well to a humanizing gesture on the buyer’s part, like a heartfelt letter. “It’s imperative that I continuously ask the seller key questions so that my buyer can craft the most appealing offer.” I recommend my buyers write a letter that casually introduces them to the seller, enumerates the reasons why they love the house, and conveys the joy they see it bringing their family. Appealing to the seller’s emotions may not be the dealmaking factor in every instance, but it certainly never hurts to add some sentimental value to your offer. The last contingency is critically important: the appraisal. We want to make sure that the lender’s appraiser can get out to the property within the expected time frame because, in this low-inventory market, properties are moving fast and mortgage/title professionals are swamped. Again, you need to be working with a lender who’s on the ball. As your 30-day escrow period draws to a close and your lender finalizes the loan documents, you’ll have five days before the actual date of closing to inspect the condition of the property; basically, you’re verifying that nothing’s changed in the 30 days since you wrote your offer. If it all checks out, then you’ll be on to the best day of the whole process: closing day! I hope you enjoyed this rundown of the home-buying process. If you have further questions about this or any other real estate topic, or are in need of vetted vendors, please reach by phone or email. I’m always here to be a resource for you!

This is what you should know about value-adding and personal preference upgrades. Today I’ll discuss the two final types of renovations to consider when you’re upgrading your investment or personal property. The National Association of Realtors cites that new siding and kitchen renovations like new countertops, state-of-the-art appliances, and new windows are some of the most beneficial projects when it comes to getting the most value during a sale. Upgraded bathrooms, refurbished decks, and energy-saving improvements also offer a lot of bang for your buck. Personal preference projects that you want but other people may not like include amenities like swimming pools, tennis courts, hot tubs, wine cellars, game rooms, and ponds. Believe it or not, pools rarely add a lot of value to a home. It’s usually expensive to maintain an in-ground pool, and many buyers view it as a high-maintenance hassle and potential safety hazard. There’s no harm in adding these items to your home, but don’t expect potential buyers to be willing to pay a premium when you’re ready to sell. Be careful when it comes to replacing a popular or commonplace feature in your home. If all the other homes in your neighborhood have two-car garages, you should probably think twice about converting yours into a game room. You should also think hard about large-scale changes like eliminating a bedroom or removing walls before you commit to them. “Don’t bother undertaking expensive projects strictly to increase the purchase price of the property.” Remember that your primary residence isn’t just a house—it’s your home. If you plan to live there for many years to come, add the amenities you’ll love, regardless of their impact on the resale value. When it comes time to sell, you can do the basics to get the property up to the neighborhood standards and add some curb appeal. However, don’t bother undertaking expensive projects strictly to increase the purchase price of the property. Those custom upgrades may add more appeal to you than your potential buyers. Keep your renovations small, neutral, and centered around improving the functionality of your home. If you’re wondering how your home compares to others in your neighborhood in terms of value, reach out to me. I’m happy to give you a free, no-obligation home valuation and share what your home could sell for after renovations. Hope to hear from you soon!

Here’s what you need to know if you’re thinking of buying a home in San Diego. As we move through the fall season, you may be hearing a lot of things from the media regarding our real estate market. Some say we’re in a bubble and that a slowdown is imminent. Others say you should buy now because it’s a great opportunity.  2020 has been an interesting year as far as our market goes. As you know, a lot of people lost their jobs after the COVID lockdown, and the market was expected to sink concurrently. That didn’t happen, though. All the while, interest rates have been sustainably low—the lowest I’ve ever seen. In fact, I’ve seen loans close at just 2.5%, which is mind-blowing. This helped our market keep a fast pace.  What should you do if you’re a tenant thinking of buying a home? This might sound crazy, but hear me out: Do what you think is right. If you’ve been paying $2,000 to $3,000 per month in rent for the last three to five years, you’ve been paying $50,000 to $60,000 annually with no tax deductions. If you really want to buy, don’t focus on a home’s price—focus on your potential monthly mortgage payment. With rates as low as they are, you can buy in the $500,000 to $550,000 range and still pay $2,000 to $3,000 per month for your mortgage. If you’re willing to spend a little more ($650,000 to $700,000), you’ll be able to find homes in better neighborhoods. “If you really want to buy, don’t focus on a home’s price—focus on your potential monthly mortgage payment.” This part of the year, it’s been very challenging to get a home under contract because inventory is so low in San Diego County. We only have between 3,600 and 3,700 homes for sale (this supply only includes detached homes, twin homes, condominiums, and townhomes). There are between 4,200 and 4,500 pending homes. The good news is that I know plenty of tips and tricks to help you get the home you always wanted, so your first step in the home buying process should be to give me a call. My team and I will give you a free buyer consultation and let you in on the secrets of making a strong offer. For example, we’ve been shortening the timelines of the inspection and appraisal contingencies for our buyer clients (sometimes waiving the appraisal contingency altogether), which has proven very successful in getting their offers accepted.  If you’d like to start the home buying process or have any real estate questions at all, don’t hesitate to call or email me. I’d love to speak with you!

Here’s a look at the options available for today’s self-employed buyers. First, I wanted to give you a little advice if you have an investment property and you want to tap into that equity. You can always do so through traditional financing with a big bank, but there are other options. For example, there are equity-based programs where we look at the income being produced by the property to qualify you for a cash-out refinance. Right now, we’re going all the way up to 70% loan-to-value on those programs. Second, one of the groups that have been hit hardest by COVID is self-employed individuals. If you’re self-employed and need a mortgage, you can get one through traditional financing, bank statement loans, or another option. We can actually work with self-employed investors to take their bank statements, look at the deposits, and come up with an average that we’ll then use as income to qualify them.  If you have any questions for me about buying a home, investing, or refinancing, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s how to add some curb appeal to your home so buyers are wowed. Curb appeal is crucial when selling your home. Adding curb appeal helps the house look great when prospective buyers arrive. The first impression makes a huge difference. While curb appeal projects may not add substantial monetary value, they will help you sell quicker. Things that add curb appeal include a well-manicured lawn, low-cost landscaping, fresh paint, and new fixtures. The fantastic news is, you can do all this yourself, it’ll save you money and time, and these tasks are easy. When selling your property, you should paint with neutral colors; now’s not the time to incorporate vivid design choices —you want to appeal to as many buyers as possible. “Adding curb appeal helps the house look great when prospective buyers arrive.” Good lighting inside the home is also important, but don’t overdo it. You want the house to look bright and inviting, but don’t break the bank. If you need help with any of these projects, I have an excellent list of vetted vendors that can help with any task. Give me a call or send an email; I’d be glad to refer you or answer any questions. I look forward to being your reliable real estate resource.

Here are my thoughts on selling a home now versus waiting for spring. You’ve probably heard a bunch of conflicting information about our market, so I’m here to clear things up and give you the facts. Our team continues to help clients buy and sell homes day after day. We have buyers, sellers, investors, and other real estate professionals who are buying and selling real estate. “There’s never a ‘perfect’ time to buy or sell a home.” We are in a very strong seller’s market right now. We have a limited supply of homes, and demand is high. There are about 63% fewer homes on the market now than we had in September 2019. That’s a huge dropoff and demonstrates just how low our supply is. In the same period, sales remained flat even though there were so many fewer homes to choose from. There’s never a “perfect” time to buy or sell. Timing the market doesn’t work. What does work is taking advantage of current market conditions to cash out on your equity, and put it into something bigger and better. If you bump up into the luxury market, there’s a bit more supply to choose from. I’m almost positive that the election will have some impact on this luxury market. If you have any questions for me about buying or selling a home in this kind of market, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

This is what constitutes basic home improvements and upgrades. Today I’m breaking down basic home improvement projects. These projects can look very different depending on whether you’re approaching them as an investor or a homeowner. Basic remodeling projects focus on attributes that a buyer would expect to already be up to date when they walk into the home. These include a non-leaking roof, functioning gutters and downspouts, a reliable furnace, solid floors, walls in good condition, retaining walls that work, functional plumbing, and a working HVAC system. In more upscale properties, the basics would also include a certain number of rooms and amenities common to the neighborhood. This doesn’t mean you have to refurbish all these things; you can focus on regular maintenance and smaller upgrades that keep everything in working order. Adding these basics to a house that lacks them won’t increase its value, but it will bring the home up to par with the rest of the area. If you want to update the house enough to sell it, depending on the area, you may have to do a bit more than the basics. On the other hand, while you want your property to stand out from the competition, avoid unwarranted enhancements that exceed what nearby homes have. Not only would you end up losing money, but you may also scare off potential buyers. “Basic remodeling projects focus on attributes that a buyer would expect to already be up to date when they walk into the home.” Before you invest in a full-house overhaul, consider what competing properties in the area have to offer. Find out how similarly priced homes in the neighborhood measure up, and make improvements based on your hyperlocal market. For this, you’ll need a market evaluation; don’t trust the real estate websites, they aren’t always accurate. Give me a call or send an email for a free, no-obligation home evaluation. If you want more information on home improvements than just the basics, reach out to me as well. I look forward to speaking with you.

Here’s my advice on how you should approach updating your investment properties. Updating an investment property is generally a sound strategy if it’s done the right way. The most successful investors abide by the mantra of ‘buy low, sell high,’ so they purchase rundown homes at bargain prices and save money on repairs by doing most of the work themselves—a little sweat equity goes a long way toward making a real estate investment profitable. These hands-on investors carefully choose their remodeling projects, focusing on the ones that will yield the most value with the least amount of work. Part of the process involves paying attention to the other homes in the neighborhood so as to avoid over-improving the home, which happens more often than you’d think; it’s better to take the junkiest home in the best neighborhood and fix it up. If none of the other houses in the area have crown molding or Corian countertops, adding those features is unlikely to result in a significantly higher selling price. Nevertheless, you just never know what you can do with a better lot and a decent home! “It’s better to take the junkiest home in the best neighborhood and fix it up.” When addressing the most important rooms of your home, the kitchen and bathrooms, don’t overdo it. To make the most of your remodel, it’s best to keep these four types of projects in mind: basics, curb appeal, value-added, and personal preference. Stay tuned for my next video in which I’ll break down each of these project types and give you vetted vendor referrals for when it’s time to get work. As always, reach out by phone or email if ever have any real estate-related questions or needs. I look forward to hearing from you soon.

Here’s what you need to keep in mind when using various forms of credit. There are three main factors used to determine your credit score. The first and most obvious factor is your payment history; have you been paying what you owe on time? The second factor is the length of time you’ve had lines of credit open—the longer, the better. Lastly, there’s the ratio between the current balance on an account versus the limit of that account; though there are differing opinions on what exactly this ratio needs to be for you to get the optimal credit score, I’ve seen a consensus growing around 20%.  What if your credit is bad? How can you start digging yourself out of that hole?  1. Apply for a secure credit card. Instead of applying for credit all over the place, go for the sure thing; head to your bank and ask for a secure card—not a prepaid card. Refusing to use credit won’t move your credit score anywhere. You need open trade lines to jump-start your credit, but they need to be safe. Having at least three well-managed trade lines of credit open will help you demonstrate that you’re responsible.   2. Check out First Premier Bank. They’ll give you a $300 credit card for $95 up front, and after one full year of making your payments on time, they’ll return your money back. Remember: The size of the account doesn’t matter; you don’t get additional points for having a $10,000 credit card. It’s all about ratios and percentages. Keep your balance as low as possible to maximize your credit points.  If you have any questions about improving your credit score or healthy credit usage, we can help you with some credit counseling. We’re not credit experts ourselves, but we know the basics very well and can help get an extra 10, 15, or 20 points. If not, we can refer you to some reputable credit repair companies. Give us a call or send us an email anytime!

Here’s what you need to know about our San Diego real estate market. Can you believe it’s already September? Right now, the real estate market in San Diego continues to be headlined by healthy buyer demand and a low supply of inventory. According to the San Diego Association of Realtors, the year-over-year numbers from August are as follows: Closed sales in San Diego increased 3.3% for detached homes and 4.5% for attached homes. Pending sales were up 21.4% in detached homes and 26% in attached homes. Inventory decreased 51.8% for detached homes and 28.9% for attached homes. The median sale price increased by 11.5% for detached homes and 7.4% for attached homes. Days on market are down 3.4% for detached homes and 3.7% for attached homes. Overall supply decreased 53.6% for detached homes and 32% for attached homes. Although unemployment has dropped down from its peak in March and April, more than 1 million new claims are being filed each week, and more than 31 million people were claiming benefits as of early July. Despite the significant economic impact, homebuyers seem pretty resilient. With mortgage rates near record lows, high buyer activity is expected to continue through the rest of this year. “Unemployment is certainly a factor to watch.” What does all this mean for you? Let’s talk about it. Give me a call or send me an email today and we’ll go over your situation. I look forward to hearing from you.

Here’s what a veteran electrician has to say to homeowners in our market. Today I’m joined by a longtime friend and skilled electrician, Aaron Ramos. In our current hot market, Aaron has been kept busy by a lot of remodels and solar panel installations. He’s helped homeowners and property management companies remain in compliance with California’s Title 24 code, which was designed to reduce wasteful energy consumption. As Aaron explained, solar panels are a great way to cut down your energy bill, even though their upfront costs can be steep. Electrical is a big deal when you’re buying or remodeling a home, and you want to have an expert make sure everything is functioning and safe. Aaron, for example, has over 25 years of experience in the field, and he’s headed his own company for 12 years now. He’s included on our vetted vendor list, which you can access here; it doesn’t take much research on your own to find out that he’s one of San Diego’s best. “When looking for an electrician, get referrals from people you trust who can testify to a company’s quality standard.” What does he have to say to anyone thinking about remodeling or building a new home? Make sure you hire a qualified electrician, whether it’s him or somebody else. “So many times, you’ll go inside a house and [the owner has] a carpenter that does everything,” Aaron said. “They do plumbing, they do drywall, they do tile, they do electric… you can just tell when somebody doesn’t know what they’re doing, and that’s a fire hazard.” When looking for an electrician, Aaron recommends getting referrals from people you trust who can testify to a company’s quality standard. Check out the Contractors State License Board website and search a name or company to verify that who you’re working with is licensed and bonded in the state of California. Again, if you’re looking for a well-qualified electrician who can get the job done properly, Aaron Ramos has my full confidence and stamp of approval. Reach out to him at aramoselectic@gmail.com or (619) 990-2002.

Here’s how we’ve been ahead of the tech curve in the mortgage industry. Like pretty much every industry in this country, the mortgage industry has changed as a result of the COVID-19 pandemic. What will a post-pandemic mortgage industry look like? The first big change is that people aren’t able to walk into a bank or lender’s office and ask for a loan or refinance anymore. You need to make an appointment first. The good thing about our team is that we’ve always been a tech-based brokerage ahead of the digital curve. We’ve been having clients schedule their appointments online for years, so we are specialists in remotely lending. Everything we do is web-based; nothing needs to be printed, and we can communicate directly on the computer. “These changes make the process safer and more convenient.” What happens when you have to sign documents? As long as they’re not the final documents that need a notary, everything can be signed electronically. That makes the process not only safer, but also more convenient.  Throughout the process, basically everything gets done electronically. There’s no need for you to always work with a local lender because that in-person interaction isn’t necessary. However, if you are like me and like talking to a person and being able to look them in the eye, we can hold Zoom meetings where we will break everything down and share our screen to go over the documents one by one.  The bottom line is that lending has never been better, more convenient, or more user-friendly. If you have any mortgage-related questions for me or needs I can assist with, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.

Here’s my latest update on the market, and what to expect moving forward. I hope everyone is doing well despite the nation’s current circumstances! Unfortunately, our area is having to go back under lockdown—for example, we’re no longer allowed to dine in at restaurants for the time being. How is that affecting the real estate market? Well, a majority of the people who work in the restaurant industries (except maybe the owners) are renters, so I foresee issues within the rental market coming in the next few months to a year since those people may struggle with paying rent.  Also, the rate of employment has been going up. There used to be a 13.5% unemployment rate in our area—now we’re down to 11%. Jobs are starting to pick up again, people are going back to work, and companies are restructuring and reorganizing. How is this impacting the real estate market? This has had a positive impact. People have job security; many have been working from home, which in turn causes them to reassess the amount of space they have there. People are finding they want to have a dedicated office space, a bigger yard, etc. As of May, June, and July, more people have been buying properties on the outskirts of major cities; many are less concerned about traffic now that they’re having to work from home, and some employers are cutting costs by shutting down some of their office spaces. “Buyers, it might be a good idea to lock in your rate today.” The most important thing is that the economy keeps on running. Here are some key facts to note: Last year between June and July, we had 3,141 home sales. This year during the same period, we had only 2,997. A decline of 5% is really nothing when you consider the fact that we’re in the middle of a pandemic. We currently have 4,025 homes for sale, which is a fairly low number given that we sold 3,000 units in June. Multiple offers are rampant from entry-level condos up to the luxury market; typically, the luxury market doesn’t do this well during times of uncertainty.  We’re in a strong seller’s market because interest rates and inventory are low. If you’ve thought about selling your home, be it to upsize or downsize, this is probably the best time to do so. If you’re a buyer who’s been renting and is unsure of the future, you might not feel 100% comfortable buying a home right now, which I understand. Just know that interest rates are around 3.25%, which is the lowest I’ve ever seen them in the last 12 years. It might be a good idea to lock in your rate today. If you have any questions or would like to have a one-on-one conversation about the market and your real estate plans, don’t hesitate to reach out to me. I’d love to hear from you.

I recently had the pleasure of joining Rodrigo Ballon on an episode of “All About You” to talk about a variety of topics. Today I’ll show you a recent guest spot I did on the TV show “All About You” with host Rodrigo Ballon. In this wide-ranging interview, I talk about what motivated me in my real estate career, why there’s nowhere else I’d rather work than North County, and what I predict for the rest of the 2020 market. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure: 0:45 - How I got my start2:29 - What I was doing before real estate4:46 - Why I enjoy working in North County7:10 - The type of person I’m looking to bring on to my team9:00 - Where I see the market heading for the rest of 202010:15 - Wrapping things up If you have questions about any of the topics discussed in today’s video or you’re an agent looking to join a team that can take you to the next level in your career, give me a call, email me, or visit my website. I’d love to hear from you.

Interest rates have been hard to predict, but here’s the latest news. There has been so much unpredictability with interest rates lately that it’s even hard for us real estate agents to keep track sometimes. However, there’s light at the end of the tunnel. Now that things are starting to return to a more normal state after the initial panic of the pandemic, banks are opening back up. Still, interest rates are the lowest they’ve ever been. To learn more about our current interest rates, watch the short video above.

Is mortgage forbearance the same as mortgage forgiveness? No, and here’s why. It’s clear COVID-19 isn’t going anywhere, and as we head further into the summer months, the nation is struggling with morale. However, I’m confident we will get through this together. My heart goes out to all of the families who have been affected either financially or physically. Today I want to discuss an all-important and timely topic: mortgage forbearance.  You’ve likely heard it mentioned on the news, as more and more homeowners explore options to ease their increasing financial burdens. How does it work? What are the pros and cons? Is it the best strategy for you? These are the questions I want to address for you. My goal is to empower you to make a more educated decision so that your efforts to seek relief don’t end up harming you later.  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 skip to topics that interest you most:  0:45 — Defining a mortgage forbearance  2:00 — Don’t jump on the bandwagon; if you’re still able to make your payments, do so.  3:05 — With forbearance, your property taxes and insurance are not getting paid  4:30 — Your servicer will not report your forbearance to your credit bureau  5:10 — The right way to go about obtaining a mortgage forbearance  7:38 — Wrapping up today’s topic  I can’t stress how important it is to get all the details of your forbearance, should you decide to get one, in writing. If you have questions about what I discussed in this video, or anything else pertaining to lending amid this COVID-19 environment, please reach out to me via phone or email. I’m here to be a resource for you in these uncertain times. I look forward to hearing from you.

I talked to a group of real estate pros about the importance of data. I recently gave a presentation for the San Diego Real Producers’ Mastermind Zoom series about the importance of data when analyzing the real estate market and prospecting for clients. Here’s a timestamped outline of the discussion so you can skip around to the section(s) that interest you the most: 0:55 — How data and real stories work together to help clients make decisions about buying or selling 1:45 — The future of the real estate market boils down to a few specific data points 3:00 —ShowingTime data and trends that show we’re back on track 4:45 — A look at the San Diego County expected market time year over year 6:00 —  Why interest rates should be an emphasis for buyers 7:15 — The wrong mindset that most prospects have about this market and how you can change it 8:10 — Wrapping things up If you have questions for me about the current state of the real estate market or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you.