Tuesday, July 31, 2012
Monday, July 30, 2012
Home Sellers: Cut to the Chase in Home Repairs and Enhancements
By Ruben Gonzalez Jr.
Prudential California Realty (DBA)
2011 opens as a strong buyer’s
market so home sellers must be on their toes to give their homes maximum
appeal. Not only should sellers complete the home repairs they know must be
made, they should also hire a certified home inspector to thoroughly and
impartially evaluate their properties.
If this inspection results in a fix-it list, review the list with your
real estate professional to establish necessities and priorities. Depending on
your budget and objectives, you may want to repair only items that could cause
significant deterioration to your property, such as a leaky roof. Ideally, the
closer you can get your home to “move-in-ready” status, the more likely you are
to attract today’s cautious and discerning buyers.
Among the most common repairs and enhancements yielding immediate buyer
appeal include:
·
Paint inside and outside in neutral
colors
·
Steam clean or replace carpets
·
Polish or replace hardwood floors
·
Clean or re-grout kitchen and
bathrooms
·
Replace light fixtures
·
Change light bulbs throughout and replace
wall-switch covers
·
Repair dripping faucets
·
Fix sticking doors
·
Repair broken fencing
Home sellers wanting to do more should consider the findings of
Remodeling magazine’s 2010-’11 Cost vs. Value Report, released in December
2010. The survey used input from REALTORS in 80 cities to rank home remodeling
projects according to those that bring the greatest cost recovered at sale.
Many of the top projects focus on exterior replacements, as
replacements are generally less expensive than other types of projects and they
add all-important curb appeal – essential for today’s competitive market or any
other.
The Top Five projects in the Cost vs. Value Report include:
No. 1 – Entry door replacement (steel)
No. 2 – Garage door replacement (four-section door, reuse existing motorized
opener)
No. 3 – Siding replacement (fiber-cement siding)
No. 4 – Kitchen remodel (minor: new cabinet doors, drawers and hardware,
plus new energy-efficient appliances, flooring, counters, sink and faucet)
No. 5 – Deck addition (wood)
When the dust clears and projects are complete, be sure that you and
your real estate professional document your repairs and enhancements, and share
the report with prospective buyers. Walk prospects through the enhancements and
include their costs.
A home in good condition
demonstrates pride of ownership. Taking the time to make enhancements helps
ensure your home is presented in its best-possible light, primed for sale.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail. Prudential (dba) is an
independently owned
and operated member of The Prudential Real Estate Affiliates, Inc., a
Prudential company. Equal Housing Opportunity.Thursday, July 26, 2012
Tuesday, July 24, 2012
Costs for First-Time Buyers
By: Ruben Gonzalez Jr.
Prudential California Realty (DBA)
Buying a new home
can be a huge, complex undertaking, especially when it’s your first
time. That’s why it’s important to have an experienced real
estate agent guiding you along the way.
In a survey
conducted earlier this year by Prudential Real Estate and Relocation
Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company,
75% of respondents highlighted the importance of real estate agents
in the process of buying or selling their home, with only 24% saying
agents are helpful but not imperative.
“Americans
continue to see real estate agents as having a very important role in
helping them price, buy and sell their homes,” said James Mallozzi,
PRERS’ chairman and chief executive officer. “Although the data
underscores the value real estate agents provide, it also shows that
the industry needs to continue to work hard to meet clients’ unique
needs.”
First-time buyers
need to look at their financial situation and crunch the numbers to
see if this is the right time to buy. Chances are the numbers they
see today will be the best they will see for some time, which is why
so many are considering homeownership.
Still,
understanding the money that goes into a home purchase is important.
The biggest mistake new buyers make is underestimating the costs of
buying a house and maintaining it over time.
Homebuying requires
more than a down payment as closing costs and future expenses will
figure prominently. Many experts agree that homeowners should have
1%-3% of their homes’ purchase price in savings for improvements
and surprise expenses. Mortgage experts also say it’s wise to have
at least six mortgage payments in the bank after a closing.
While those numbers
may not be feasible for everyone, if you are spending above your
means on a new home, you may find yourself in financial trouble fast.
Inspections are
important for the first-time buyer, as they list repairs that will be
needed for the home. A buyer should put together a short-term and
long-term plan based on the inspection so they know how much money
they will need in the months and years ahead.
As renters, people
are accustomed to paying rent and basic utilities. As homeowners,
you’ll also pay for water, sewer and trash collection. Then there
are property taxes, homeowner’s insurance and homeowner’s
association dues, plus yard care, snow removal and other expenses
unique to your location.
To be sure, buying
a home is one of the largest investments you’ll make and when done
wisely, it can be one of the best decisions of your life. Your real
estate agent will help each step of the way, first helping you
establish a realistic price point for your home purchase and a clear
understanding of your monthly expenses.
Ruben Gonzalez can be reached at (562) 507-0754 or E-mail
Prudential (dba) is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
Monday, July 23, 2012
Saturday, July 21, 2012
Down Payment Tips
Prudential California Realty (DBA)
Many people dream of owning a home but don't think it's possible because they lack the resources for a down payment and closing costs. Here are tips for securing that down payment.
1) Borrow from your retirement account: Many people have been investing in a 401(k) plan or traditional IRA for years and first-time homebuyers may borrow up to $10,000 for their down payment without incurring a penalty. For those self-employed or if your employer allows it, you also can borrow up to $50,000 from your current 401(k) and pay yourself back over five years at a low interest rate.
2) Ask family: Sure, you may be too proud to ask for money, but if relatives can help you and your family move into that dream home, isn’t it worth it? If you do get help from a family member, the lender will ask you to sign a gift-letter form, attesting to the relationship. The lender may also require your relatives to explain where they got the money and prove that they are financially able to make such a gift.
3) Look for down payment assistance grants: Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to own a home.
4) Come to a lease/purchase agreement: Homeowners who can’t sell their homes in this market may consider a lease/purchase agreement, where you rent the home you want to buy and a percentage of your rent is applied toward the down payment. If you go this route, make sure you get a contract outlining all the details so both parties are protected.
5) Add it to the wedding registry: Several mortgage companies allow those getting married to set up a down payment registry. This is a great way to celebrate the joining of two people in matrimony.
6) Cut back and save: If none of the other ways will work for you, there’s always the old fashioned “saving for a rainy day.” Try putting aside 10% of each paycheck and make your meals instead of going out for them. If you’re married, save the money you would spend on birthday, anniversary and Christmas presents and put it toward your house. You also may need to forget that vacation this year.
These sacrifices may seem significant but they will be worth it once you’re inside your own home.
Ruben Gonzalez Jr. can be reached at (562) 507-0754 or E-mail.
Prudential California Realty (dba) is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
Friday, July 20, 2012
Tuesday, July 17, 2012
Hamp Program Extended
By: Ruben Gonzalez Jr.
Prudential California Realty (DBA)
President Obama in a recent State of the Union address spoke about homeownership and how the American Dream has dissipated for many due to lingering challenges in housing and mortgage lending.
The President offered hope to more homeowners by extending the Homes Affordable Modification Program (HAMP) until Dec. 31, 2013, and widening the program’s eligibility criteria.
HAMP allows qualifying homeowners with Fannie Mae or Freddie Mac mortgages made prior to June 1, 2009 to refinance to a better rate and more favorable terms. It also provides incentives to participating mortgage lenders that reduce principle for qualifying borrowers.
Millions of additional homeowners may be eligible for HAMP to reduce their homeownership costs and avoid foreclosure. Originally, the program was designed to reduce mortgage borrowers’ debt ratio to 31% of their incomes, and those below that threshold were not eligible. These borrowers may now apply for HAMP consideration, as can borrowers struggling under the weight of other liabilities, such as medical bills.
Eligibility also has been extended to owners of rental properties – as many as 700,000 landlords may qualify for loan modification under HAMP.
Moreover, borrowers who were approved for a HAMP trial period, but did not make the payments as scheduled, would now be eligible for consideration under new guidelines. Also, homeowners who missed payments under an approved HAMP modification would be eligible to reapply under the new rules.
The Obama administration announced it would triple balance-reduction incentives to lenders, paying up to 63 cents for every dollar lenders take off mortgage principal. The administration also said it would offer incentives to Fannie Mae and Freddie Mac to reduce principal on loans. Previously, the government had only offered incentives to private lenders and banks.
If your mortgage is owned, insured or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or USDA you may be eligible for HAMP consideration. Contact your mortgage servicer for details.
Ruben Gonzalez Jr. can be reached at (562) 507-0754 or E-mail. Prudential California Realty (dba) is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
Monday, July 16, 2012
Saturday, July 14, 2012
Thursday, July 12, 2012
Tuesday, July 10, 2012
Monday, July 9, 2012
Saturday, July 7, 2012
Friday, July 6, 2012
Thursday, July 5, 2012
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