1st time buyers – Page 9 – The Real Estate Beat

Good News for Landlords: Rents Still Rising – Bad News for Tenants

The article below is both good and bad news. For investors, whom have scooped up deals on the San Francisco Peninsula through the bust, they are raking in the gold with high rents. For the rentals properties I service, it’s been amazing to see the increase in rent year over year. But demand is there – and with few homes to buy – the rental market is booming.

For those who are renting, they cringe when they see a letter from their landlord in the mailbox. Several clients of mine have emailed me this year concerned that their rent went up. Some as little as $50 – other a more substantial jump. These renters are the first time buyers of the future. Skipping dinners out to stash away cash for down payments and closing costs. And around here – where the median home price starts at $800,000 – we’re not talking pennies and dimes that need to be saved.

Right now the cheapest rental listed on the Multiple Listing Service is a 3 bedroom 1 bath home of about 1050 square feet in the Buri-Buri area of South San Francisco – asking rent is $3,000. The most expensive rental is a dated but spacious 3 bedroom 4 bath home of close to 4000 square feet in Portal Valley asking for $9,500 a month. The median rental listed today is a 3 bedroom 2 bath condo in Menlo Park listed at $4,250 a month.

Suddenly that $50 rent increase doesn’t sting as much.

But the word is out – the Bay Area is a wonderful place to live and we’re all paying for it now. Enjoy this article below…

Good News for Landlords: Rents Still Rising

Average rental prices have ticked up nearly 4 percent nationwide, according to the latest TransUnion Rental Screen Solutions industry report of data collected from property managers in September 2012 and September 2013.

Rents were on the rise for all four of the classifications of rental properties that TransUnion analyzes: newer institutional properties; older institutional properties; older properties in less desirable areas; and older properties in less desirable areas that are in need of renovations/updating. The average rent of all four types of properties was $1,072 in 2013.

The largest rental increases were seen in properties that were in less desirable areas that need renovations, up 4.2 percent to an average of $693.

“The rental market continues to be strong as demand for rental units remains high while consumer credit risk slowly improves,” says Michael Doherty, senior vice president of TransUnion’s rental screening solutions group. “The combination of improving rental risk scores and continued demand for rental properties is particularly good news for property managers. … When the credit risk of the population improves, property managers may be more inclined to tighten their criteria to ensure they are getting the best possible resident. This is integral because a resident who ‘skips’ out on a lease can cost a property manager thousands of dollars in lost revenues.”

By: DAILY REAL ESTATE NEWS

I read this article at: http://realtormag.realtor.org/daily-news/2014/01/28/good-news-for-landlords-rents-still-rising?om_rid=AACmlZ&om_mid=_BS6BpXB838Asq2&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

How to Assess the Real Cost of a Fixer-Upper House

How to Assess the Real Cost of a Fixer-Upper House

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

1. Decide what you can do yourself

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house.

* Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.

* Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer

* Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.

If you’re doing the work yourself, price the supplies.

Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs

Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home.

Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.

Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work

If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems.   Get written estimates for repairs before you commit to buying a home with structural issues. Don’t purchase a home that needs major structural work unless:

You’re getting it at a steep discount

You’re sure you’ve uncovered the extent of the problem

You know the problem can be fixed

You have a binding written estimate for the repairs

5. Check the cost of financing

Be sure you have enough money for a down payment, closing costs, and repairs without draining your savings.   If you’re planning to fund the repairs with a home equity or home improvement loan:

* Get yourself pre-approved for both loans before you make an offer.

* Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.

* Consider the Federal Housing Administration’s Section 203(k) program, which is designed to help homeowners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance and rehabilitation costs into a single mortgage. To qualify for the loan, the total value of the property must fall within the FHA mortgage limit for your area, as with other FHA loans. A streamlined 203(k) program provides an additional amount for rehabilitation, up to $35,000, on top of an existing mortgage. It’s a simpler process than obtaining the standard 203(k).

6. Calculate your fair purchase offer

Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.   Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently re-carpeted, and has a radon mitigation system in its basement.

The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.

Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair.

7. Include inspection contingencies in your offer

Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:

* Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.

* Radon, mold, lead-based paint

* Septic and well

* Pest

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.   If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

My words to the wise – if you get outbid – don’t fret – start again. Each home you take the time to break down and understand the cost of repair – the better prepared you will be when the next opportunity arises.

We bought a condo as our first purchase – and though you mainly own just the paint in – we budgeted $10,000 in repairs only to spend $17,000 in the end. Hind sight is always 20/20 – but now when we buy our next home, we’ll have the experience under out belt and a better picture of a budget and our limitations.

By: G. M. Filisko

I read this article at: http://members.houselogic.com/articles/how-assess-real-cost-fixer-upper-house/preview/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Visit our Website at: http://thecatonteam.com/

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Keep Your Home Purchase on Track

Keep Your Home Purchase on Track

I love finding great articles to share – I’ve added my 2 cents in itatlics – enjoy – Sabrina

You’ve found your dream home. Make sure missteps don’t prevent a successful closing.

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

You might get away with your fib when you apply for your loan, but once you find a home and have an accepted offer. Your lenders underwriter will comb through every bit of your financial life. One fib will open a huge can of worms and you could find yourself in hot water. Because not only have you harmed your chances at getting a loan – you’ve held up a seller who is working in good faith with you and has pulled their home off market waiting for you to remove your contingencies and close escrow. DON’T LIE!

2. Hold off on big purchases

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.   Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

The only thing you should be doing is saving your pennies until you close escrow on your new home. People of lost their dream home because they spent money before closing. Not my clients though – I remind them constantly about the big picture!

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

Amen – well said!

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

There is a clause IN the Real Estate Purchase Contract (in California) that states – Time is of The Essence! We are not kidding. Time is contractual – do what you said you would do. Your mother will be proud!

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

We take each deadline deadly serious. Could there be delays? Yes of course, so much of the real estate purchase process is beyond your Realtors control – so make sure you’re doing what you should be doing when you should be doing it – it will streamline an already difficult transaction.

By: G. M. Filisko

Got questions – I am here to help – call or click – info@theCatonteam.com

I read this article at: http://members.houselogic.com/articles/keep-your-home-purchase-track/preview/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Negotiate Your Best House Buy

Negotiate Your Best House Buy

I love to share articles I find interesting – I’ve added my 2 cents in italics…

Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home.

Here are six tips for negotiating the best price on a home.

1. Get prequalified for a mortgage

Getting prequalified for a mortgage proves to sellers that you’re serious about buying and capable of affording their home. That will push you to the head of the pack when sellers choose among offers; they’ll go with buyers who are a sure financial bet, not those whose financing could flop.

This is so much the first step towards home ownership – any Realtor worth their salt won’t even take a buyer out until they are pre-approved and understand their budget and constraints. In the San Francisco Bay Area – don’t bother writing an offer until you have a pre-approval in hand – or proof of cash.

2. Ask questions

Ask your agent for information to help you understand the sellers’ financial position and motivation. Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

The Caton Team also finds out the big picture so we can tailor each offer for the best fit. When faced against multiple offers – information is key and structuring your offer is imperative.

3. Work back from a final price to determine your initial offer

Know in advance the most you’re willing to pay, and with your agent work back from that number to determine your initial offer, which can set the tone for the entire negotiation. A too-low bid may offend sellers emotionally invested in the sales price; a too-high bid may lead you to spend more than necessary to close the sale.   Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.

The Caton Team will provide a buyer with a Comparative Market Analysis (CMA) when we sit down to write the offer. We take into account the current state of the market, what homes have sold for in the recent past, what they are going for now, and the amount of competition for each home. Try to maintain an open mind when writing your offer.

4. Avoid contingencies

Sellers favor offers that leave little to chance. Keep your bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

Contingencies are what protect the buyer. Talk closely with your Realtor on which contingencies should stay in and which you can omit to improve your offer. Each client and offer is different. That’s why it is so important to work with a Realtor you trust.

5. Remain unemotional

Buying a home is a business transaction, and treating it that way helps you save money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.   Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

This strategy works great when you are the ONLY offer. So much time is wasted by buyers who think they hold the reigns in negotiations. In the San Francisco Bay Area we have low inventory right now and high demand. Setting the stage for a Sellers Market. Each listing will entertain multiple offers. So it is best to write your best offer up front because chances are you will NOT get a counter offer or the chance to change your offer once submitted. It is imperative you work closely with a Realtor you trust. Each offer opportunity is unique and will require a new strategy.

6. Don’t let competition change your plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions—such as waiving an inspection—that aren’t in your best interest.

Great advice. The Caton Team will not push our clients to do anything they are not comfortable with. I would rather change our purchasing strategy and shop in a different market or price point than overextend our clients reach just because the housing market is competitive.

Buyers must be aware that they cannot control the market or the volume of competition. All a buyer can do is educate themselves on the market, understand their budget and their max and shop within their parameters. Nobody said it would be easy – but The Caton Team does strive for a smooth overall experience.

By: G. M. Filisko

I read this article at: http://members.houselogic.com/articles/negotiate-best-house-buy/preview/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

5 Inspection Problems Buyers Shouldn’t Ignore

I enjoy posting my own artciles and sharing others. This one from the Real Estate Daily News is very share-worthy – enjoy – Sabrina

5 Inspection Problems Buyers Shouldn’t Ignore

Home buyers need to be extra vigilant about inspections in the early stages of a purchase because if problems are discovered too late in the process, it can “dash home owners’ dreams and budgets,” writes Yahoo! Finance in a recent article.

One home buyer in Long Island, N.Y., explains in the story that she didn’t discover the fixer-upper she bought needed $225,000 in repairs until after she purchased it.

Jonathan and Drew Scott, who educate viewers about transforming fixer-uppers on HGTV’s “Property Brothers,” offers up a checklist of five things buyers should look for to ensure they don’t buy a lemon.

Mold: Buyers should note any musty smells in the home and be on the lookout for any mold. Mold can be caused by improper air circulation as well as water leaks.
Pests: Termite damage can be widespread and costly to repair.
Outdated fixtures and wiring: Electrical problems in a home can cause fire hazards. Buyers should take note of any indication of faulty wiring, such as cable coming out of drywall.
Poor DIY jobs: Buyers should make sure that the previous home owner’s do-it-yourself projects were done correctly and are up to code. For example, poorly done flooring and painted-over wallpaper can be time-consuming and costly to fix.
Drainage problems: Sloping sod can cause flooding problems in a backyard, and a slow-draining sink could be an indication of a bigger problem. Buyers should test sinks and flush toilets to test for any potential problems.

Source: “Property Brothers: Don’t Buy a House Without Checking These 5 Things,” Yahoo! Finance (Aug. 19, 2013)

I read this article at: http://realtormag.realtor.org/daily-news/2013/08/22/5-inspection-problems-buyers-shouldn-t-ignore?om_rid=AACmlZ&om_mid=_BSFlH2B80sQKxz&om_ntype=RMODaily

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabby

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

For Sale by The Caton Team – 1 Bedroom Condo in Santa Clara – Open Sat & Sun 1-4pm

Check out more photos at – http://instagram.com/sunshinesabby

Or – http://thecatonteam.com/MyListings?operation=MorePictures&listing_id=1713024610

Your home is your sanctuary, your retreat from the hustle and bustle of everyday life. 151 Buckingham Drive Unit #226 is located on the south end of Santa Clara bordering Campbell and Cupertino – just down the street for Santana Row and Valley Fair Mall. The property is within the Cupertino School District.

But you wouldn’t know you were living in the heart of Silicon Valley when you look out your 2^nd story, wrap-around balcony. This corner end unit is nestled in prime real estate country. Close to the front of the complex so your friends and family can easily find you – though tucked away to enjoy lovely views of the treetops and lagoons of the Vista Del Lago condominium complex.

Upon entering this home from the exterior hallway, you are welcomed into a great-room style living area. Ready for your taste and palate with warm toned carpet and neutral paint. This allows a buyer to move-in and take their time to decorate their new home.

The updated kitchen with granite wrap-around breakfast bar opens to the great-room so the chef is never left out of the party. A full size dishwasher, oven-range with microwave hood and refrigerator complete this kitchen. Imagine hors d’ oeuvres sprinkled over the counter while guest lounge on the sofa or enjoy the sun and trees off the balcony.

The living area is spacious and with two sliding glass doors that open out to the balcony – there is ample natural sunlight throughout the day. When the gorgeous California weather heats up, the convenient air condition unit makes this home quite comfortable as you relax to the sound of the water features and birds.

The master suite adjoins the living area and features ample storage with two large closets and a separate linen closet. The carpeted bedroom has a floor to ceiling window, ceiling fan and mirrored closet doors.

The bathroom features a large vanity with single sink, enclosed tub with overhead shower, ceiling fan and ample lighting.

This unit comes with a tandem two-vehicle carport and adjoining large storage unit.

Ownership at Vista Del Lago includes a refreshing pool, spa, gym, clubhouse and coin operated laundry in each building. Home Owner Association dues are approximately $367 a month.

A complete disclosure package is available. The disclosure package includes a complete set of Home Owner Association documents, Home & Pest Inspection, Natural Hazards Disclosure and all California mandated disclosures. Click below for disclosure access.

http://thecatonteam.com/PDisclosures?id=1713024610

This unit is a fantastic investment, currently listed at $300,000 for a 1 bedroom at 599 sqft.

For more information – please contact The Caton Team – Susan or Sabrina. MLS # 81319710

http://thecatonteam.com/PropertyDetails?fl_hook=1713024610&show_description=yes&show_address=yes&presented_by=&show_virtual_tour=yes

FOR PHOTOS CLICK:

http://thecatonteam.com/MyListings?operation=MorePictures&listing_id=1713024610

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Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218

4 Tips to Determine How Much Mortgage You Can Afford

I had to share this article – with our Fall Real Estate Market starting now – it’s a good time to think about your budget if you are planning on becoming a home owner! I find so many buyers thinking about the house they want before they consider the impact of home ownership on their day to day finances. Taking time now, before you house shop, to put your financial house in order – will help your chances in this competitive market today! Enjoy – Sabrina

4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

1. The general rule of mortgage affordability

As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.  To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment

How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.

The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt

Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.  Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide

The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.  Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.   However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.  Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

By: G. M. Filisko

I read this article at: http://members.houselogic.com/articles/4-tips-determine-how-much-mortgage-you-can-afford/preview/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabby/

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Importance of Working with a Good Lender

The Importance of Working with a Good Lender – by Sabrina

Buying a home is serious business; especially on the San Francisco Peninsula where even a one bedroom condo can run about half a million bucks.

And in an industry where time is money and money talks, from time to time I will encounter a lender – that offers great rates and low fees – upfront. And no customer service when you really need it.

Much too often a buyer is tempted to get the best rate – without really considering the whole picture.

Unless you are paying cash – the home loan is the most important aspect of buying a home – aside from the home itself.

So when taking into account that a home is generally the largest purchase of a person’s life – shouldn’t we work with a bank that treats it with the same respect? YES!

There are hundreds of steps from finding the home to getting the keys. The loan is probably the largest hurdle aside from home inspections.

Once a buyer’s contract is accepted by the seller – it’s rush time. Most offers have a time frame – called a contingency period – to have the bank do their appraisal and have the loan/purchase terms reviewed and approved by underwriting. It can be as long as 17 days in a buyers market – or as short as 5 days in a sellers market. And this is where we separate the men from the boys. Some of these out of state or on-line lenders are not located here – where one is buying – and it can be extremely difficult to get information and approvals done when they close shop at 5pm and it’s only 2pm here!

That friendly voice that quoted a buyer a fantastic rate isn’t calling us back anymore…..and when they do it’s often not what we were hoping to hear. For example, they need more time to review the file – therefore we need to push back the close of escrow date – which seems easy – but again – time is money. The seller is expecting the buyer to perform to the terms of the contract and it’s not worth losing a home due to a lackluster lender…..and changing lenders mid way is generally not an option.

So – what can a buyer do to be competitive? Work with a local lender. Once your credit is pulled the first time – a consumer has 30 days to loan shop without hurting their credit score. So do it! Loan shop the whole month and find the best rate, the best fees and make sure the lender is attentive, local and can move at the pace the current market is dictating.

The Caton Team has a list of Client Approved Lenders – so please reach out to us and we’ll introduce you to the team.

Got Questions? – The Caton Team is here to help. What can we do for you?

Email Sabrina & Susan at: Info@TheCatonTeam.com

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabrina/

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through home ownership at:

http://ajourneythroughhomeownership.wordpress.com/

Thanks for reading – Sabrina

A Cinderella Story – Anna – From Renter to Owner

First time homebuyers bring us joy! Not only are they the corner stone of the real estate market – they are the fuel. Without the first time homebuyer, it would be hard for owners/sellers to move on to their next home.

But with great responsibility comes work. And in the San Francisco Bay Area – it’s hard work. 2013 has been an interesting year in local real estate. We know prices hit bottom in 2009 and many buyers, sitting on the fence for the past several years, were unsure where the market was going. Early in 2013 these buyers got off the fence and changed the dynamic of our local real estate market.

After the New Years Eve confetti was brushed away, many buyers started looking. Earlier this year, we had very limited inventory. In fact, we’ve had low inventory since our prices dropped. Amazing low interest rates, coupled with low prices – generated some excitement.

Over the holidays, a friend and fellow Notre Dame alumni reached out to me with a question. Could she buy a condo? Before the local real estate bust, condos and home prices steadily rose. Back then a one-bedroom condo ran close to a half-a-million bucks. Not an easy price for a first time homebuyer. So when prices fell – opportunity was knocking.

With her pre-approval in hand we took Anna out for her first tour. At first, she expected her house hunt to take one month. Quickly we explained that with the current low inventory and high buyer demand, we were looking at closer to 6 months than 1 month to find and acquire a home. A frown – but she held tight.

Our first problem – there wasn’t much to look at. Once we looked at older inventory – it became a race to see the new ones. As soon as a new condo came on – I was on the phone with her setting an appointment to show it. I have got to say – Anna understood the importance of the early worm. She didn’t push the most expensive and important purchase of her life to the end of her day, or only on the weekend. Anna understood that the market waits for NO ONE! So during her lunch break or between her appointments, we’d take a look.

Earlier this year, with demand high, most units had offer dates set after the first open house. Making it a mad dash to the finish line to get her offer in. Being that we looked during the week, Anna had the opportunity to show the unit to her family and friends over the weekend and write her offer with confidence.

We must have written 5 offers in a few months. It felt like we wrote offers once a week. And slowly, as units were closing escrow – we saw it – she saw it – the market price was inching upwards and eventually she’d be priced out of the market.

Now Anna is a very savvy young woman. She saw the writing on the wall – I didn’t have to tell her it was a matter of time before we had nothing to shop for. So Anna did what all smart buyers have to do – she took a look at her ‘wants vs. needs’ list and made some reality adjustments. In the end, location was her most important attribute. She didn’t want to live in the fringes of the Bay Area just to say she had more space. Anna wanted to be close to work and near a downtown to enjoy her life.

Then a junior one bedroom came on the market in Santa Clara. Right in the heart of it – it was a great location. And you know what how important location is in Real Estate! We were quick to write an offer. Up against three others – she was out bid. Thankfully The Caton Team, with 25+ years in the business has earned a nice reputation among local agents. With a clean offer and backed up by our expertise, Anna was given a counter offer and my next call to her would prove to be most joyous.

Congratulations Anna! You were a joy to work with and The Caton Team is honored to have been the Realtors to turn you from renter into owner!

How can The Caton Team help you? We’re a call or click away!

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabrina/

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com/

Thanks for reading – Sabrina

6 Wills, Won’ts and Worries of 2013 Home Buyers…. great article – had to share…

When I read this – I just had to share….

6 Wills, Won’ts and Worries of 2013 Home Buyers

Trulia Article By Tara-Nicholle Nelson

If you’ve ever taken up running, you might know what it’s like to strap on your new shoes, head over to the track and take those first few strides, then feel a pain in your chest, heaviness in your feet and possibly, actually see stars. Maybe your last steps off the track were accompanied by the thought process: “Either I’m crazy, or runners are.”

Until you have talked to a legitimate, dyed in the wool runner and told them your story, explaining why you detest running with every iota of your being you won’t know the runner’s secret: everyone feels that way at first. It’s the normal physiological adjustment to the increased load you’re putting on your cardiovascular and musculoskeletal systems, this pain you felt when you took those first few steps. It goes away in just a moment, if and only if you keep on running.

Sometimes, knowing that others react to a tough situation by feeling the same emotions, thinking the same thoughts, or doing the same things you do flat out helps you feel less crazy, panicked and out of control of your situation. It’s the concept behind support groups but, last I checked, there really isn’t such a thing as group therapy for home buyers. (Well, some would say that’s what Trulia Voices is for, but I digress.)

Today’s rapidly rising prices and generally volatile market does make things tough for buyers, so we thought we’d systematically explore – and then share – what’s going on inside the minds of the buyers on today’s market. Hopefully, sellers will find some insights for marketing their properties, too.

Fresh off the presses, here are some of the insights and takeaways from our latest American Dream Survey, pinpointing the things today’s buyers worry about, will and won’t do in their quest to get their own corner of the American Dream: a home.

Worry: Mortgage rates and prices will rise before I buy. Trulia’s Economist Jed Kolko reports that “the top worry among all survey respondents who might buy a home someday is that mortgage rates will rise further before they buy (41%), followed by rising prices (37%).” The worry is valid, given the fact that the market was depressed for so long and has a long recovery road ahead of it. It’s compounded by the fact that buying a home has gone from something that used to take a month or two and now routinely takes 6 months, 9 months, a year or even longer!

Here’s the deal: you can’t stop prices from rising. And fixating on this particular fear poses the potential pitfall of rushing to buy or making compromises that will turn out badly in the end. Don’t dilly dally, if you’re ready and in the market, and don’t mess around making lowball offers with no chance of success. But otherwise, don’t let this fear drive your buying and timing decisions.

Will: Be aggressive. B. E. Aggressive. Economist Kolko explained, “among survey respondents who plan to buy a home someday, 2 in 3 (66%) would use aggressive tactics such as bidding above asking, writing personal letters to the seller, or removing contingencies, to name a few.” What buyers do and don’t do in the name of aggressively pursuing their dream homes (and, consequently, what sellers expect) is slightly different in every town.

Knowing that other buyers are facing down the same challenges you are and coming up with similar, aggressive solutions can help you feel a little less crazy about your thought processes and emotions and the desperate measures that come to mind when you hear how many others think “your” home is their dream home. And that puts you back in control of what can sometimes feel like an out-of-control situation. Reality check: you are 100% in the driver’s seat when it comes to how aggressive you want to be in your pursuit of any given home, and which specific tactics you leverage in the course of that pursuit.

Worry: I won’t find a home I like. Forty-three percent of people who plan to buy a home in the next 12 months expressed the concern that they might not be able to even find a property they like. Perhaps these people were just seriously persnickety, but I suspect there’s a bigger issue at play here. All of us can find a home we like, but whether there’s anything we like enough to buy in our price range is a completely separate issue.

This worry, then, seems to be closely related to the fear of rising prices – buyers are rightfully fearful that home value increases will put their personal dream homes out of their price range. This is why it’s super important to:

be aggressive about seeing suitable properties as soon as they come onto the market
work with an agent whose offer pricing advice you trust
adjust your house hunt downward in price range if the market dynamics include lots of over-asking sales prices, and
not to let months and months go by while you make lowball offers or otherwise be slow to come to the reality of what homes are actually selling for in your area.

The sooner you put yourself seriously in the game and make reality-based offers, the more likely you’ll be able to score a home you like in your price range.

Worry: I will have to compete with other buyers for the home I like. Twenty-seven percent of those who plan to buy at some point in the future and 32% of those who plan to buy in the next year said they feared the prospect of facing a bidding war. This worry is well-grounded. In California, the average property receives four offers – but stories of dozens of offers abound. And it’s not just a West Coast phenomenon: buyers from coast to coast trade tales of getting outbid and having to throw in their firstborn child, lastborn puppy and most precious earthly possessions just to get into contract.

Truth is, market dynamics vary from town to town, and even neighborhood to neighborhood, but if you’re buying on today’s market or planning to buy anytime soon, bidding wars, multiple offers and over-asking sales prices are a reality you will probably have to factor into your house hunt.

Won’t: Bid way more than asking. Only 9 percent of wanna-be buyers said they would bid between 6 and 10 percent over the asking price for a property. This finding surfaces the uber-importance of checking in with an experienced local agent to get a briefing on precisely how much over asking homes are selling for in your area. This empowers you to tweak your online house hunting price range low enough that you can make an over-asking offer and be successful without breaking the bank. And once you’ve gotten a reality-based estimate of the over-asking norm, it will loom less ominously in your mind’s eye as a potential American Dream-killer.

Worry: I won’t qualify for a mortgage. Thirty percent of all people who identified themselves as planning to buy a home in the future said they were worried they might not be able to qualify for a home loan. (Interestingly, only 25 percent of buyers in hot markets like Oakland and Las Vegas expressed this concern – rapidly rising prices and knowing lots of other buyers are closing transactions in your town seems to ease this fear.)

Of all the worries on the list, this is the one over which a smart buyer has the most power. So exercise it! Work with a mortgage broker who was referred by friends, family members or an agent you trust. And ideally, work with them months – even a year or more – before you plan to buy. They can help you put an action plan in place around boosting your savings and credit score, and minimize your debt and credit dings, that you can work to minimize mortgage qualifying dramas when the time is right. They can also help give you a stronger sense of what you can afford vis-a-vis your income, to help you anticipate any challenges related to what sort of home your dollar will buy in your market.

ALL: What worries do you have about today’s market? Which steps are you willing to take in your quest to achieve the American Dream?

I read this article at: http://www.trulia.com/blog/taranelson/2013/07/6_wills_won_ts_and_worries_of_2013_home_buyers?ecampaign=cnews20+and1308A&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F07%2F6_wills_won_ts_and_worries_of_2013_home_buyers

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call The Caton Team at 650-568-5522

Visit our Website at: http://thecatonteam.com/

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or Yelp me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Instagram: http://instagram.com/sunshinesabby/

Pintrest: https://pinterest.com/SabrinaCaton/

LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

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