Testimonials for The Caton Team, Sabrina Caton and Susan Caton

Testimonials From Our Clients

 

Sabrina and team are fantastic.  Responsive, honest, transparent and efficient.  She’s also well-connected in the real estate community on the peninsula – whether buying or selling, you can’t ask for better representation.  I highly recommned her!

– Kenny H.

 

To future clients of The Caton Team,

The Caton Team is made up of Susan Caton and Sabrina Caton, or as I like to refer to them as the Dynamic Duo of Real Estate. They are trustworthy, honest, straight-forward, and experts in the real estate business. I might be a little biased, because of my friendship with them, but nothing will test a friendship more than the process of buying and selling a home. As everyone knows when you sell your home you want the most money for the least amount of effort and you want the process to be quick and smooth. The Caton Team will make sure you have all of the necessary information and knowledge to understand how to stage your home and what the process will be along with a realistic timeline of what you can expect. If you follow their directions and listen to what they say, your home selling experience will be painless and quick. For us this ended up being less than a week with our home selling for more than what we expected. The entire process from filling out the required paperwork to negotiating went smoothly and was overall painless on our end. At the end of the day we got more than what we wanted and were in a great position to start hunting for a new home.

This brings me to how The Caton Team helped us buy a new home for what we wanted, while making sure that we got the home that we wanted. Since we had already bought and sold our first home with The Caton Team, using them again to buy another house did not require much thought, actually required no thought. We went into the process wanting the best of the best in the best location, because who does not want that for themselves? They were kind enough to listen to our wants and desires and showed us what we could afford in the areas we were looking. It took a few homes to realize that our expectations were not in sync with the market, because currently in early 2015 homes are going like hot cakes and for more than what they are listed at by a fair amount.

This is when we sat down again and started looking at other areas that were just as nice, but we had ignored initially. The important part here is while they mentioned this information early on, they allowed us to realize it on our own that we needed to look outside of our ideal areas if we wanted our dream house. Once we realized what they were saying we expanded our search and found the home that we wanted. After our initial open house we contacted The Caton Team and informed them that we found the home that we wanted. This is when The Caton Team sprang into action, they immediately started requesting all of the disclosures from the seller’s agent and contacted the seller’s agent to gain any additional knowledge that might not be in the supplied paperwork. They then shared this information openly with us, as one would expect, and started laying down the groundwork of what we would need to do if we truly wanted this house. They supplied us with the tools necessary to make an informed decision and provided us with comparable sales (COMPS) in that particular area, so that we would have an idea of what houses were selling for and where the market was heading (spoiler alert, market was only going upwards). Their attention to detail and understanding of the market allowed us to make the best offer we could, while not overbidding or underbidding and making sure that we would have our offer accepted. As you have already guessed, our offer was accepted almost immediately and we are now homeowners of a home that we wanted in an area that is ideal.

If you have made it this far, then you realize why The Caton Team is really The Dynamic Duo of Real Estate. They make sure you are provided with the proper tools and information to make the best decision for yourself. They will work tirelessly with you and will not be a 9-5 agent, they will be honest, trustworthy, and straight-forward. You will not feel like you are getting the short-end of the deal and at the end of the day you will feel great about your decision to work with The Caton Team.

-The Liere Family

 

“I worked with Sabrina and Sue a few years back and they were so professional. I was going thru a divorce and had to sell my condo. I was beyond upset. (Not because of the divorce but selling the condo) haha… Thru this difficult time they were so amazing and made me feel at ease. The housing market at that time was not the best but they did their best to make sure I got a good deal.  The condo wasn’t on the market for too long and I was able to sell it for a decent price. Thank you to both for making that transition in my life a little easier. Definitely will be using them again if and ever I can buy again.”

-Elena

 

“We had a great experience buying a house through the Caton team. Sabrina and Susan were patient in answering our many questions, and helped guide us in the offer process to help win a bid on our second offer even in this crazy market! They are easy to get in touch with over email, text, or phone, and detail oriented to make sure nothing fell through the cracks. We’d highly recommend them!”

-Katherine

 

Hi Susan and Sabrina,

I just thought I’d take a moment to write you both to say how much of a pleasure it has been to once again have had another successful property transaction come to fruition with you both at the helm (yay, three now)!

I can’t say enough how Victor and I have been so happy you’ve been our representatives in both our buying and selling transactions, and that your dedication and hard work, creativity and professionalism have always made a world of difference all throughout the process of buying and selling our homes. From the smallest details like your fantastic web page ads and captioning to your weekly and continuous updates and presence at the property for showings and repairs. You’ve left nothing to chance!

It’s clear that experience counts, and your research and broad-based knowledge of the local real estate and larger markets in general, have always provided us with a solid backdrop from which we could make our decisions. You’ve always provided us with good information, solid recommendations, and I’m grateful that we had you both as our representatives.

Additionally, I want to say on a personal note, that you are both so considerate and thoughtful, and I always feel that we are in good hands when you’re on the job.  Thank you again for this recent and very successful sale of our property, and we look forward to our continued relationship with you in future transactions.

I did not have your Broker’s contact information, but if you would please forward him/her this e-mail, I’d appreciate it, because I’d like them to know that you have permanent fans!

Thanks again,  Helen and Victor

 

“Susan and Sabrina, The Caton (Dream)Team –

Thirteen years ago, we met Susan Caton who so kindly helped us find our first home in the Bay Area.  She was mindful of our budget and attentive to our wish list.  We landed a great starter home fit to our needs and close to work.  In 2012, when it came time to relocate into a neighborhood with great schools, we once again called upon Susan, who now was partner with her daughter-in-law, Sabrina, to find the right house for our growing family.  First, Susan and Sabrina helped sell our house within 2 weeks time at a price within our expectations.  Then, they delivered BIG by helping us find our next dream home in a competitive market with little time to spare knowing Facebook millionaires would soon bring stiff competition to the housing market.  All along, even when our first two offers fell through, Susan and Sabrina helped us keep our focus and always had our best interest in mind.  Settling for less than our hearts desired was not the answer, and our patience combined with our trust in Susan and Sabrina paid off when we stumbled upon our dream home.  We can honestly say that working with The Caton Dream Team has been a true pleasure as it has enabled us to find a wonderful place to call home, not only once, but twice.  When the time comes, we will gladly call upon their services again, and we highly recommend them to anyone looking to find their first or next dream home.”

– Fredric and Heather R.

 

“I recently worked with The Caton team (Sabrina and Sue) to purchase my first home. I was referred to the team by a co-worker who had just purchased a condo with them. He had a great experience, and recommended them for their honesty, responsiveness and availability (even at night and weekends). I found this assessment to be 100% true.

I first met Sabrina and Sue when I was interviewing realtors. They recommended I come to their office for the interview. They were the only ones to recommend this, which already set them apart in my mind. During the interview they shared their process and approach and how our relationship would work. I decided to work with the Caton team for several reasons. 1) A great referral 2) Their open and honest personalities 3) Their sincere concern that I find exactly what I am looking for 3) Their combined years of experience and specialization in the peninsula.

After our first meeting, they set up their home search for the criteria we discussed. Part way through the search, my criteria changed, and they updated the search for the new criteria. Periodically, they would check in to see if I saw anything that I liked. We narrowed the search by going through what I liked and disliked about each listing that I reviewed online.

Sabrina and Sue answered all of my questions along the process. They came to the home inspection and to sign papers at title company. The title company representative that I signed papers with commented on how lucky I was to have my realtors there, looking out for my best interests, as a lot of first time buyers come alone, signing papers they don’t understand.

After receiving keys to my new home, the Caton team continued to support me. They referred me to painters their colleagues had worked with and found multiple contractors who would do the work I needed.

Sabrina and Sue are really easy to work with. It’s like talking with friends when I reach out to them. They are very approachable, trust worthy and hard working. They always answer questions I have or research to find the answers if they do not have them right away. I highly recommend them and will use them again for future real estate needs.”

– CJ T.

 

“The Caton team is awesome! Susan and Sabrina were an awesome fit for my husband and I as first-time homebuyers, but I highly recommend them for anyone at any stage of buying a home. They went above and beyond to help us locate a wonderful home and took us step by step through the often confusing short sale process. It felt less like we were working with realtors and more like we were working with good friends or family! Thank you, thank you, Sabrina and Susan!”

-Marie B.

 

“If anyone can get it done quickly it would be you two. By far the best Realtors west of the Mississippi.”

– Josh L.

 

“The Caton Team is A-Number-One in our book.  Susan and Sabrina are consummate Pros.  They do exhaustive research, they know how to price a home in today’s competitive market, and they know how to stage a home for maximum buyer appeal.  They’ve sold two homes for us, and we’re completely satisfied with everything they do.  You go, girls!”

-Russ & Elena H.

 

“I met Sabrina and Susan during our recent rental home search.  As we were not prepared for a move (current homeowners informed us that they were selling the house after 1 year of listing the home as a rental) we needed to act quickly and diligently to find our new home.  My initial communications were with Sabrina as she was hosting an open house.  Her emails were prompt and friendly and I got to know her a bit through email.  When I met up with her for the open house, she was just as friendly in person as was her partner, Susan.  They were welcoming throughout the process and provided wonderful thorough follow up on behalf of the homeowner.  Susan made herself available on a Saturday morning for the signing of the lease and has been in contact with us as we prepare for the move-in.  We have very much enjoyed working with the Caton Team and would recommend them for rental guidance and hopefully in the near future, home ownership!”

– Angela J.

 

“The Caton team has helped me find my perfect condo within a month of looking! And then later found me great tenants to rent it out. They work quickly and are very professional. Plus, these are just a pair of wonderful women to be around. They are very trustworthy and have their Clients’ best interest in mind. I will be using them again for all my real estate needs, and I recommend them to everyone else! Thank you so much!”

-Caitlin G.

 

“The Caton Team are the best. They are very easy to work with and know what they are doing. Made a very stressful time much easier! I would recommend them to all. First time buyers and people that have sold many times will enjoy working with these wonderful ladies!”

-Chris & Gary C.

 

“The Caton Team has helped us many times. Susan and Sabrina are wonderful and we will use them again when the time comes. They know everything about the bay area and never pressure you about making decisions. We couldn’t ask for a better team.”

-Elisa D.

 

“I’m pretty sure without The Caton Team we wouldn’t have been able to buy our house. We started looking right before the housing market crashed and was going back and forth on qualifying for a loan.   They made it happen-it’s a long story and I can make short and sweet. Please use The Caton Team for you house buying needs!  Really!”

– Nisi C.

 

“I can’t say enough about what an incredibly professional job Sabrina did; she went above and beyond the call of duty! We would not be in our house today were it not for her tireless efforts. She’s so knowledgeable and works tenaciously for her clients. 
Thank you Sabrina!

-
Rip R.

 

“Great working with you guys!”

-Aaron B.

 

“I have worked with many realtors during my 15 years as a mortgage broker and Sabrina Caton is by far one of the best real estate agents I have ever had the pleasure of working with on a number of purchase transactions over the years. She is upbeat and personable with a great sense of humor. She consistently works with her clients best interests in mind and is not afraid to tackle the tough deals. I have personally seen her negotiate to lower the purchase price by $25,000 after the contract was already signed when the buyers’ appraisal came in below the purchase price. You can count on Sabrina for high energy, professional real estate services!”

-Melanie Flynn – Windsor Capital

 

“Susan & Sabrina did an excellent job, I am very happy.  I highly recommend them.”

– Heidi & Robert M.

 

“Susan & Sabrina were great, very helpful, and understanding.  They were never pushy and made sure we were making the right choices at all times.  We would use them again for our next property purchase.”

– Anthony D. & Elisa L.

 

“Susan & Sabrina did a wonderful job, they are easy to communicate with, they were willing to put in extra time and work in getting our house ready to sell.”

– Kathy & Rodney H.

 

“I knew I wanted to work with Susan   immediately because she actually         listened to our needs, and gave sound, practical advice and information without a sales pitch. I would recommend her to anyone. She was absolutely helpful and made the whole thing easy and painless. I didn’t worry about anything as long as she was working on it.”

– Alicia S. and John G.

 

“Sabrina did an excellent job, she went above and beyond from the beginning to the end of the transaction making sure we understood every detail. She made things very easy on us – we appreciate all her hard work. We used them for both our real estate deals.”

– Kathy & Rodney H.

 

“When we need to sale our home – we definitely will call them again!”

– Loyda C. & Carol J.

 

“We loved working with Susan. I feel I have gained a new friendship. She was totally honest and trustworthy. She made selling our home a pleasant                   experience.”

– Ken & Elain S.

 

“Susan went above and beyond what she had to do. She was the only help I had getting my parents home cleaned and emptied so I could sell. I live in           Sacramento and didn’t have the time to get down to San Carlos. She truly was a “God Send”. She is FABULOUS! I can’t say enough about her! Please know you have one hell of a woman working for Prudential. Please make sure she receives kudos for a job well done!”

– Andrew R.

 

“Susan was always available to us, providing information and assurance during the selling process of our home. Thank You!

– Leo & Carlotta O.

 

“We felt very relaxed and trusted their personality.”

– William & Helen G.

 

“They did an excellent job and we would recommend them!

– Steve & Stacy G.

 

“Thank you – Flawless Service!”

– Danielle C. & Thomas G.

 

“Very honest.”

– Fredric & Heather R.

 

“I will recommend them to all my friends and family.”

– Diane S.

 

“We wanted to work with Sabrina. She was wonderful. She put up with lots of emotions / family dynamic around the sale of this home, as it was our families house. I appreciated her sensitivity and solid knowledge. We would be happy to work with her again and pass along any new clients as well.

– Nancy R.

 

“I highly recommend them!”

– Derek H.

 

“Susan helped us so much. She       advised us and “rode” with us though the entire ordeal. She is a very “real” person and shares concerns. She        advises and makes one feel extremely comfortable. I would recommend her to another person unconditionally. She is an excellent agent who goes above and beyond the call of duty.”

– Russ & Elena H.

 

“They were great. They made the     entire process as fun and easy as it could be. Thank you!”

– Matthew S.

 

“Susan was extremely helpful in   making our first move in 44 years painless. It was a major undertaking. Thank you!”

– Betty C.

 

“Very thorough. Informed me of the newest listings. Made intelligent     recommendations and opinions on listings without being pushy. The attention given to me made me feel as if I were the only client. I am extremely satisfied with the service.”

– Toshinari K.

 

“They were very professional and helpful. We could not complete the   transaction without them.”

– Takeshi & Nana M.

 

“We selected Susan over two other agents because we liked her better.”

– Daniel S.

 

“EXCELLENT JOB! Lots of support throughout the process! Great             personalities and professionalism! Very responsive to our concerns during the sale – thank you!”

– Mike & Lynn A.

 

“Sabrina is a highly effective real-estate agent. She has in-depth of knowledge of the market, strong negotiation skills and provides highly personalized service…she really listens to the needs of her client and delivers based on those needs.”

– Elif S.

 

“I was impressed with the attention to detail throughout the sale process. True Professionals!

– John K.

 

“We were very happy with Susan as she helped us through a difficult situation. Thanks is just not enough to say for what she did!”

– Donald & Roseanna M.

 

“Definitely an asset to your company!”

– Rosemary P.

 

“They are such real / genuine people. I felt I could lean and trust them               particularly with some very important but difficult to understand questions. They are WONDERFUL!”

– Patricia P.

 

“Susan has impeccable integrity, what a great individual. Thank you for a         wonderful transaction.”

– Pamela G.

 

“What a great experience. I live 4 hours away and shopping for rentals is not easy. The Caton Team made my shopping experience less stressful. Always ready to answer any questions I had, anytime I had them. I highly recommend this Team.”

– Julienne E.

Why Millennials Are Having Trouble Buying Homes

Why Millennials Are Having Trouble Buying Homes

This topic is near and dear to my heart of two reason – the cost of real estate on the San Francisco Peninsula – and the fact I’m experiencing the same frustrations!

There are many reasons why the millennial generation – young adults in their 20s and early 30s – are either having trouble buying a home or have decided to delay their purchase. Recent troubles in home purchasing have left many millennials feeling discouraged and wondering if they will ever become homeowners. Many experts are also worried about the lack of homes being purchased by millennials, because the housing market is fairly dependent on young first-time homebuyers.

The census bureau has reported that only about 36 percent of Americans below the age of 35 have become homeowners. Despite the fact that this number is so low, at least 90 percent of millennials would rather buy a house than continue to rent. If the percentage of millennials that would prefer to own their own home is so high, then why is the percentage of actual homeowners so low?

Why millennials are not buying

One major factor is the trickle down of expensive college educations. As the price of college continues to rise, more students are forced to take on the load of student debt. Millennials rack up student loans throughout their college career, not realizing that it will one day affect their ability to purchase a home. This is especially sad because the mortgage on an average priced home is cheaper than renting an apartment in most cases.

While student loans provide recent graduates with the advantage of establishing their credit history, they can hurt them when it comes time to apply for a home loan. Lenders consider an applicant’s debt to income ratio as part of the loan application. A hefty student loan can greatly hurt what the bank views as an ability to make payments on a mortgage.

This is particularly true for someone that has private student loans, because private loans tend to have higher interest rates and shorter payment terms, meaning that their monthly payment is much higher than that of someone who only has government student loans. Another problem that people run into is multiple student loan payments. If you are making five $70 dollar payments to separate lenders as opposed to one $150 dollar payment to one lender, you weaken your ability to prove that you can afford to take on a mortgage payment.

If that is not enough to worry about, there is still the fact that you have to save for a down payment. Many millennials barely have a savings account, much less a 20 percent down payment. Those who do decide to buy will rely on their parents and other family members to help with the expense of their down payment.

Another reason why millennials are having trouble buying homes deals with the job market. The country is finally making its way out of one of the biggest recessions we have seen in a long time, and finding a job can still be difficult for some people, especially for those who are new to the job market and lack experience. While a college degree can help get one in the door, it still does not warrant the pay level that many millennials need in order to cover their student loans and a mortgage.

It might take a little time, but, hopefully, we will start to see more millennials buying homes sometime in the near future. If you have trouble buying a home and would like credit counseling and loan information, contact The Caton Team

I read this article at: http://activerain.trulia.com/blogsview/4486707/why-millennials-are-having-trouble-buying-homes

My two cents – I’ve been able to work with several millennial buys who have either saved their pennies or were given investment assistance. It can be very discouraging on the San Francisco Peninsula to be a 1st time buyer – but options are out there – If you think outside the box and open your mind. Curious how you can become a homeowner – contact The Caton Team and we can come up with a plan to turn your dreams into Realty!

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

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

VISIT OUR NEW INSTAGRAM PAGE: http://instagram.com/thecatonteam

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

Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

 

How Generational Differences Are Drive Housing Preferences

I find this information very interesting, the difference between generations when buying their home – enjoy this article I found.

Generational Differences Drive Housing Preferences?

Younger home buyers tend to view their home as a strong investment, more so than older buyers who tend to view their homes as a match to their lifestyle, according to the 2014 NAR Home Buyer and Seller Generational Trends study, based on a survey of more than 8,700 responses from buyers and sellers.

The survey provided an in-depth look at the generational differences of recent home buyers and sellers.

The largest group of recent buyers is millennials, those under the age of 34, who comprised 31 percent of recent home purchases, according to the NAR survey. Generation X buyers, born between 1965 and 1979, accounted for 30 percent of recent purchases, and younger boomers, born between 1955 and 1964, accounted for 16 percent.

“Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” says Lawrence Yun, NAR’s chief economist. “Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people. However, the challenges of tight credit, limited inventory, eroding affordability, and high debt loads have limited the capacity of young people to own.”

The median age of millennial home buyers is 29 and the median income is $73,600, according to the NAR study. They typically purchased an 1,800-square-foot home costing about $180,000.

In comparison, gen X buyers’ median age is 40 and median income is $98,200, and they tend to purchase a 2,130-square-foot home costing $250,000.

Among some of the study’s other findings:

  • 87 percent of buyers age 33 and younger consider their home purchase a good financial investment compared to 74 percent of buyers 68 and older.
  • Millennials were more likely to buy in an urban or central city area than older boomers.
  • Younger buyers tended to place higher importance on commuting costs than older generations. Older generations tended to place more emphasis on energy efficiency, landscaping, and community features.
  • Millennials plan to stay in the home for 10 years while the baby boom generation plan to stay for 20 years.
  • Younger buyers tend to move to larger, higher-priced homes, but “there is a clear trend of downsizing to smaller homes among both younger and older baby boomers and the Silent Generation (those born between 1925 and 1945),” according to the study.

Source: National Association of REALTORS®

What are your thoughts on the future of home buying?  I know – the price of homes listed on this article is the national average – NOT the San Francisco Peninsula where nothing is priced that low.  But I did find this article interesting – especially the differences between Generation X and the Millennials. 

I read this article at:  http://realtormag.realtor.org/daily-news/2014/03/12/generational-differences-drive-housing-preferences?om_rid=AACmlZ&om_mid=_BTII85B84y54x2&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

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

VISIT OUR NEW INSTAGRAM PAGE:  http://instagram.com/thecatonteam

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

Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

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

Shut Out of the Housing Market? First-Timers Dwindle…

The 1st time buyer is the cornerstone to the housing market.  Enjoy this article – I would love to hear your thoughts!  I added my 2 cents at the bottom.

Shut Out of the Housing Market? First-Timers Dwindle

First-time home buyers are particularly being hit hard by rising prices and tougher credit standards — and their decreasing market share proves it.

The National Association of REALTORS® reports that first-time home buyers accounted for 26 percent of purchases in January, down from 30 percent a year earlier. It’s also the lowest market share for first-time buyers that NAR has recorded since it began measuring it in 2008.

The falling number of first-time home buyers has the potential to slow the pace of the recovery, Bloomberg reports. The decline of first-time home buyers is hampering home sales, which dropped 5.1 percent in January compared to a year earlier, NAR reports.

“It’s a huge problem,” says Leslie Appleton-Young, chief economist for the California Association of REALTORS®. “We have a ladder of home ownership and need first-time home buyers beginning the process of owning, building equity, and trading up to have a healthy housing sector.”

Some housing advocates are blaming investors for pushing out home buyers, particularly where first-time home buyers are being outbid by investors offering all-cash offers. Nearly 80 organizations are calling on federal regulators to address investors pushing potential home buyers out of the market, reports the California Reinvestment Coalition. They argue that federal housing agencies conducting bulk sales of foreclosed homes and distressed mortgages have heightened the problem.

“We’re ringing the alarm bell now and asking regulators to act,” says Kevin Stein, associate director of the California Reinvestment Coalition. “Wall Street and other cash investors are making it harder for families to buy their first house, for renters to stay in their communities, and for neighborhoods to recover.”

The housing advocates are asking for greater oversight from federal regulatory bodies, such as with more oversight of new investor landlords and ensure that banks aren’t favoring investors over home buyers with FHA loans in REO purchases. The group is also asking for greater research on the disparate impact of REO properties on various communities, particularly the impact to minority communities. Read more about the housing advocates’ stance at the California Reinvestment Coalition website.

Source: “Americans Shut Out of Home Market Threaten Recovery: Mortgages,” Bloomberg Businessweek (March 5, 2014) and “80 Organizations Ask Federal Government to Address Investor Cash Flooding Into Neighborhoods,” California Reinvestment Coalition (March 4, 2014)

Read More

Study: Student Debt Holds Buyers Back, But Doesn’t Need To
New Low for First-Time Home Buyers

My 2 cents.  When prices were as low as they were going to go – I remember contacting all the buyers I met 10 years ago to let them know there were homes in their price ranges.  Sadly, offer after offer, the 1st time buyers, with loans, were being outbid by investors – or underbid, but out timed by cash investors.  I watched homes sell so darn low to investors, foreign and domestic, my heart hurt.  Here was the opportunity for 1st time buyers, who planned on staying put for 10 years and working on their home – and they couldn’t buy because of the competition.  Now there are plenty of rental properties, but here in the Bay Area the rents are just as high as the mortgages.  I’m sad to see 1st time buyers forced to move away just to buy a home.  And that is no good for growth or our area or our housing market.  Without a first time buyer – there is no second time buyer and so forth.  It will be interesting to see how this effects us.

I read this article at:  http://realtormag.realtor.org/daily-news/2014/03/06/shut-out-housing-market-first-timers-dwindle?om_rid=AACmlZ&om_mid=_BTGMphB84q$cpc&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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Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

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

Home Values Expected to Rise through 2018

Home Values Expected to Rise through 2018 – Great Article I had to share…

A majority of more than 100 forecasters says they expect large-scale investors to sell off the bulk of homes in their portfolios in the next three to five years, boosting inventory and potentially contributing to a smoother market ahead, according to the latest Zillow® Home Price Expectations Survey. On average, panelists also say they expected nationwide home value appreciation of 4.5 percent this year, with a steady slowdown in appreciation rates each year through 2018.

The survey of 110 economists, real estate experts and investment and market strategists asked panelists to predict the path of the U.S. Zillow Home Value Indexi through 2018 and solicited opinions on investor activity and federal monetary policy. The survey was sponsored by leading real estate information marketplace Zillow, Inc. and is conducted quarterly by Pulsenomics LLC.

Throughout the recovery, large-scale investors have purchased thousands of homes nationwide, particularly lower-priced vacant and foreclosed homes, fixing them up and keeping them in their portfolios as rental properties. This investor activity helped put a floor under sales volumes during the depth of the housing recession, but also created competition for many would-be buyers and contributed to rapid price spikes in some areas.

Panelists were asked to assess the impact to the market if these institutional investors were to significantly curtail their activity this year. Among those panelists expressing an opinion, 79 percent says the impact would be significant or somewhat significant. Panelists were also asked when they thought these investors will have sold the majority of homes in their portfolios. Among those with an opinion, 57 percent says they expected this to occur in the next three to five years.

“Real estate investors, both large and small, played a crucial role in helping to stabilize markets during the darkest days of the housing recession, but a decline in investor activity now isn’t necessarily a bad thing, and could have real benefits for buyers,” says Zillow Chief Economist Dr. Stan Humphries. “Buyers entering the market in the next few months will not be competing with cash-rich investors like they were last year which should be some small solace given the higher prices and mortgage rates that they will encounter. The gradual decline of investor activity should be viewed as another sign of the market slowly returning to normal, and I agree with the panel’s expectations that there will not be a rush for the exit by institutional investors.”

Panelists were also asked when the Federal Reserve should end its ongoing stimulus efforts, known as “quantitative easing.” Since September 2012, the Fed has been purchasing tens of billions of dollars worth of Treasury bonds and mortgage securities each month, which has helped keep mortgage interest rates low and stimulate demand. The program is now being wound down.

“Mortgage rates have been riding a rally in U.S. Treasury securities caused by volatility in emerging markets in recent weeks, so the impact of Fed tapering on the housing market has been minimal thus far,” says Pulsenomics Founder, Terry Loebs. “More than 70 percent of the experts want to see the monetary stimulus reduced to zero before the end of this year, and the current pace of tapering will get us there. Of course, whether Janet Yellen’s Fed will maintain the current pace as new economic challenges arise remains an open question.”

Appreciation Expected to Normalize through 2018

On average, panelists says they expect nationwide home value appreciation of 4.5 percent through the end of this year, a pace that exceeds historically normal annual appreciation rates of around 3 percent. This appreciation is expected to slow to roughly 3.8 percent in 2015 and 3.3 percent by 2018, rates much more in line with historic norms.

Based on current expectations for home value appreciation during the next five years, panelists predicted that overall U.S. home values could exceed their April 2007 peak by the first quarter of 2018, and may cross the $200,000 threshold by the third quarter of 2018.

The most optimistic groupii of panelists predicted a 5.6 percent annual increase in home values this year, on average, while the most pessimisticiii predicted an average increase of 3.4 percent. The most optimistic panelists predicted home values would rise roughly 10.6 percent above their 2007 peaks by the end of 2018, on average, while the most pessimistic says they expected home values to remain about 4.5 percent below 2007 peaks.

What do you think the Real Estate Market will do?

I read this article at:  http://rismedia.com/2014-02-16/home-values-expected-to-rise-through-2018/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

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

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

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

Buying a Home After a Short Sale or Foreclosure Just Got Easier!

Home buyers qualify for FHA loan despite short sale or foreclosure

Mortgage borrowers may now qualify for an FHA mortgage under new guidelines established by the Department of Housing and Urban Development (HUD), according to Eli Younes of Viking Realty Group in Pembroke Pines on Tuesday.

As a result of the housing collapse, many homeowners experienced a serious reduction in income or lost their jobs due to the crumbling economy. Some mortgage borrowers were forced to file bankruptcy or short sale their home to avoid foreclosure.

Others were not so lucky and lost their home on the courthouse steps.

The new HUD rules allow borrowers whose credit was damaged due to a temporary loss of employment or income to qualify for an FHA mortgage if they have substantially recovered from that situation and maintained a positive credit history for at least 12 months.

Borrowers who recently experienced a bankruptcy, foreclosure, short-sale, loan delinquencies, deed-in-lieu, debt collections or other situation negatively impacting their FICO credit score may now be able to qualify for an FHA loan.

Recognizing that any number of events may have impacted a borrowers’ credit rating, the Federal Housing Administration (FHA) believes that such catastrophic event does not mean they are not financially stable or unable to make a mortgage payment.

As such, the previous 3-year waiting period required by the FHA on financing a new home has been revised.

“Referred to as the ‘Back to Work’ initiative, this program is designed for borrowers who lost their home through foreclosure, short sale, bankruptcy or deed in lieu and also suffered a 20% or more loss in household income,” Eli Younes of Viking Mortgage told Examiner. “As with most FHA loans, this program only requires a 3.5% down payment and is applicable for all purchase loans other than the Home Equity Conversion Mortgage.”

In order to qualify for a mortgage under the “Back to Work” initiative, there are several steps that must be taken to prove an “Economic Event” that was beyond the borrower’s control.

Employment Requirements:

The lender must verify that the borrower lost at least 20% or more in household income – or became unemployed – for a period of six months prior to the foreclosure, short-sale, or deed-in-lieu. To verify loss of income, the lender must request a written Verification of Employment to show the termination date or loss of income, receipt of unemployment compensation, or signed W-2’s and tax returns detailing the reduction in earnings.

To demonstrate a loss of income for part-time or seasonal employment, the borrower must prove a 2-year history in the same field prior to loss of employment. Borrowers will also be required to prove that they have fully recovered from their hardship, increased earnings and have maintained other credit obligations for a period of 12 months following foreclosure, short sale, bankruptcy or deed in lieu.

Credit Requirements:

When evaluating a borrower for the “Back to Work” initiative following a foreclosure, the lender may deem the borrower eligible if:

1.) The borrower’s credit report is free of any late housing payments within the last 12 months;

2.) All other mortgage accounts must be current for the last 12 months, even if the loan was previously modified to avoid a foreclosure action;

3.) The borrower’s credit report contains no more than a single 30-day delinquency on payments due other creditors; and

4.) The borrower’s credit report contains no current collection accounts or public records. This condition may be waived in instances of identity theft or borrower’s with medical collections.

Bankruptcy Filings:

1.) Chapter 7 Bankruptcy: One year must have elapsed since the bankruptcy discharge. Proof must also be shown that the bankruptcy filing was the result of an “Economic Event” covered within the FHA program guidelines.

2.) Chapter 13 Bankruptcy: Most lenders will require that the bankruptcy filing be discharged with all payments required under the agreement having been made on time. For borrowers currently in bankruptcy, written approval from the court allowing them to enter a new mortgage contract is required.

Housing Counseling Requirement:

For purposes of establishing satisfactory credit following an “Economic Event,” mortgage borrowers’ under the “Back to Work” initiative must:

1.) Receive homeownership counseling or a combination of homeownership education and counseling, at a minimum, one hour of one-on-one counseling from HUD-approved housing counseling agencies, as defined at 24 C.F.R. §214.100; and

2.) Be completed a minimum of thirty (30) days but no more than six (6) months prior to submitting a loan application to a lender, as application is defined in Regulation X, implementing the Real Estate Settlement Procedures Act, 24 C.F.R. §3500.2(b).

The housing education may be provided by HUD-approved housing counseling agencies, state housing finance agencies, approved intermediaries or their sub-grantees, or through an online course. It may be conducted in person, via telephone, via internet, or other methods approved by HUD, and mutually agreed upon by the borrower and housing counseling agency.

Rules for Renters:

Under certain circumstances, renters may qualify under the “Back to Work” initiative. For purposes of establishing satisfactory credit, mortgage borrowers must:

1.) The borrower’s credit report is free of any late rental payments within the last 12 months;

2.) The borrower’s credit report contains no more than a single 30-day delinquency on payments due other creditors; and

3.) The borrower’s credit report contains no current collection accounts or public records. This condition may be waived in instances of identity theft or borrower’s with medical collections.

A foreclosure, short-sale, Chapter 13 bankruptcy or deed-in-lieu will continue to plague a borrower’s credit report at the Equifax, Experian and TransUnion consumer reporting agencies for a period of seven years. A discharged Chapter 7 bankruptcy will remain on the credit report for a period of ten years.

“With the housing crash, many homeowners experienced unemployment or depreciated home values and for one reason or another were not able to make their mortgage payments,” Carlos J. Reyes, a foreclosure defense attorney with the Reyes Law Group in Fort Lauderdale, told Examiner. “The recent changes in the FHA guidelines have finally recognized the financial hardship faced by many borrowers and is allowing them to once again reach for the American Dream through homeownership.”

The new guidelines are in effect immediately and will be in force through at least September, 2016.

 

This is truly great news for people who faced economic hardships during our market down turn.  You have a chance to be a homeowner again.  

 

I read this article at: http://www.examiner.com/article/home-buyers-qualify-for-fha-loan-despite-short-sale-or-foreclosure

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

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

4 Ways to Supercharge Your House Hunt — and Get Your Sundays Back

It’s that time of year again – Spring is right around the corner, homes are coming on the market and Sunday’s are getting busy again!   I enjoy reading and sharing Tara’s blog on Trulia.  So I thought I would share this great article regarding how to make the best of your open house weekends.  And if you have any real estate questions – I’d be happy to help – The Caton Team is always here a call or click away.  Enjoy…

4 Ways to Supercharge Your House Hunt — and Get Your Sundays Back

Every buyer-to-be uses open houses differently. For some, they offer a rich looky-look experience at the very, very beginning of their house hunt. This empowers you to learn exactly what sort of place you can get for the money, at various price points and various spots around town. It also allows brand new buyers to figure out how the photos you see online translate into real world, brick and mortar (and stucco and hardwood) properties.

At the other end of the spectrum, serious buyers often use Open Houses as a convenient opportunity to meet up with their agent and cruise through a large number of interesting homes at one time every week without having to go through the rigmarole of setting appointments with every single seller.

Whether you’ve just decided that buying a home is something you want to do or you are a seasoned, serious buyer waiting for that moment when “the one” hits the market, supercharge your Open House hours. See more properties that are real contenders and minimize time-wasting with these four tactical tricks:

1. Prep yourself. Sure, you can just hop in the car, drive around and look for signs. If your market is very active, you can even find an interesting house or two that way. Or you can maximize your time, conserve your energy and make sure you see as many real contenders as possible in a couple of hours on the weekend by doing a little bit of digital research to create a power-packed Open House viewing session.

On the newly beautified Trulia app, you can take a look at any point on the map and see a birds-eye-view of the properties for sale, their list prices and which of them have an upcoming Open House. Tap on any property’s flag to see the property’s photo and a few of the most important details (price, address, bedrooms, and bathrooms), while still seeing the map view. For even more info, tap the image of the home you’re interested in and browse all of its relevant stats, including more pictures.  If a home isn’t checking enough of your “must-have” boxes, cross it off your Open House list for the weekend and pat yourself on the back for saving some serious time. If it is, add it to your calendar right from the app.

Tired of driving around different neighborhoods trying to determine if they’re a good fit for your family? Where’s the nearest grocery store? What’s that shady-looking character doing on the street corner? Now you can do it digitally. View the map of your target areas through a number of helpful lenses, like where schools and restaurants are located, or where crime rates are lowest. With these tools at your disposal, you’ll spend less time pounding the pavement so you can have more of your weekend back.

2. Align with your agent to create an Open House viewing list. Via the app, share the properties that you think you’d like to visit on the weekend with your agent. Ask them to do the same, sharing any properties they think you should view at Open House time with you. Then, check in via phone or email to firm up the list so they can plan out an efficient map, do some deep dive research into any property-specific questions you have in advance, and to make sure you don’t have any surprises in the form of places you really wanted to see that don’t make your agent’s list for whatever reason. Do the prep work and get on the same page with your agent in advance. It’ll make your two hours of Open House Hunting as productive as a less well-prepared buyer’s two weeks worth.

One more thing. Making sure your agent knows you are really excited about a particular property at Open House time allows them to touch base with the listing agent and let them know you might have some interest. That way, if they happen to get an offer from another buyer between the time you mention the place to your agent and Open House time, your agent will probably get a call. This prevents you from getting the awful surprise that happens when a great place goes into contract before you can see it.

3. Take notes, and compare them. After every home you see, spend a moment taking down some notes – ideally in writing or on your app – that just help you remember which property features went with which address/price/listing. Once you’ve seen 5 or 10 or 25 homes, they begin to blur, and it often comes up that you’ll want to look back and reference a particular home you visited in a later conversation with your agent or your partner. Having a few notes on your initial impressions, questions, concerns, loves and dislikes about each property prevents you from being frustrated when you later want to have a conversation about it.

Ideally, after each property you see or, at the latest, at the end of your Open House tour on a given day, you’ll also take and compare your notes about the properties you saw that day. I suggest listing out the good (what you liked), the bad (what you disliked), the ugly (any serious deal-killers) and then also the great elements for each property. Think of the great as being akin to clicking the Facebook “Like” button for a property, if that Like button were amped up to “Love.” The Great are those features – or combination of features – so strong that the property is something you’d consider writing an offer on.

The goal here is three-fold:

▪   to give you the ability to compare properties without relying 100% on memory.

▪   to allow you to give substantive feedback to your agent that will help them help you prioritize new listings as they come on the market and learn what you are looking for at a nuanced level

▪   to allow you to compare notes at the end of each Open House Hunting session with your agent or your partner (whoever you’re buying the property with), and to be able to compare pros, cons and takeaways substantively, rather than just saying you liked it or disliked it.

4. Use Open Houses as a screening tool. Here’s the other thing that taking good Open House viewing notes on each property does: it helps you narrow down all the places that looked kind of interesting to a short list for second takes. Good notes, organized by Great, Good, Bad and Ugly can help if you were hypnotized by beautiful staging or turned off unduly by ugly, easily fixable cosmetics. If you love a place, but it still has a lot of bad or ugly line items, or you dislike a place that actually has a lot of “Great” things about it, you can ask your agent to arrange for a private, second viewing before making an offer or totally crossing it off the list.

Communication with your Realtor is so important!  We cannot read your mind and the more we know about what you want – the better we are prepared to find your dream home!

I read this article at:  http://tips.truliablog.com/2014/02/4-ways-to-supercharge-your-house-hunt/?ecampaign=cnews&eurl=tips.truliablog.com%2F2014%2F02%2F4-ways-to-supercharge-your-house-hunt%2F

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

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

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

Financial Benefits of Home Ownership – Great Article I had to share…

Great article I was very excited to share. Sometimes I see buyers pass an opportunity since the cost of owning is higher than renting. However, with the rental prices in the Silicon Valley going up – it may be time to consider a more secure future by buying your own home. The Caton Team is always here to answer your questions. 650-568-5522 or info@TheCatonTeam.com  – Enjoy this article.

 

Freshen Up On The 7 Financial Benefits of Home Ownership This Tax Season

The financial benefits of homeownership are evident year round, but particularly around tax time – they seem to jump off the page. Let’s examine how homeownership makes “cents” –  from the tax benefits, to good old fashioned financial stability.

1. Homeownership Builds Wealth Over Time

We were always taught growing up that owning a home is a financially savvy move. Our parents knew it, and their parents knew it. But this past decade of real estate turbulence has shaken everyone’s confidence in homeownership. That is why it’s so important that we discuss this again now that we’re in a ‘new market.’ Homeownership can be a very savvy financial move – but only if people buy homes they can actually afford. In 2014, this idea of sticking to a home you can afford to gradually build wealth is a “rule” that just happens to be new and old at the same time.

2. You Build Equity Every Month

Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe.  That reduction of your mortgage every month increases your equity. That is especially true now with the elimination of risky mortgages like negative amortized and interest-only loans – thanks to the new “Qualified Mortgage” rules. The way mortgages work is that the principal portion of your payment increases slightly every month year after year. It’s lowest on your first payment and highest on your last payment. Thus, as the months and years go by, your equity grows!

3. You Reap Mortgage Tax Deduction Benefits

▪   Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.

▪   Some closing cost deductions: The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.

▪   Property tax is deductible: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.

4. Tax Deductions on Home Equity Lines

In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.

5. You Get a Capital Gains Exclusion

If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes. Now, it may sound ridiculous that your house could be worth more than when you purchased it after these past several years of falling house prices. However, if you purchased your home anytime prior to 2003, chances are it has appreciated in value and this tax benefit will come in very handy.

6. A Mortgage Is Like a Forced Savings Plan

Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan. Each month you are building up more valuable equity in your home. In a sense, you are being forced to save—and that’s a good thing.

7. Long Term, Buying Is Cheaper than Renting

In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent. You gotta live someplace, so instead of paying off your landlord’s home or building, pay off your own!

As always, you must look very hard at your personal situation before making the big decision to buy. Stay tuned to Trulia Tips as we explore more on this topic.

ALL: What’s your favorite benefit of home ownership?

I read this article at: http://www.trulia.com/tips/2014/02/7-financial-benefits-of-home-ownership/?ecampaign=cnews&eurl=www.trulia.com%2Ftips%2F2014%2F02%2F7-financial-benefits-of-home-ownership%2F

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

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

VISIT OUR NEW INSTAGRAM PAGE: http://instagram.com/thecatonteam

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

Connect with us professionally at 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 Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 0149900

4 Saving Solutions for Buyers on a Budget – had to share this article

Buying – rather saving to buy a home, especially on the San Francisco Peninsula take time and patience.  I too am in the same boat as my clients while I save for our next purchase.  That will explain why you don’t see me out to dinner as much!

I came across this article from Tara at Trulia and thought it easier to share than write my own.  Great points made to save and get a better picture of your monthly financials.  Enjoy and share your thoughts!

 

4 Saving Solutions for Buyers on a Budget

Most folks do all the math they can find online about how much house they can afford. Then they think about what they are currently paying in rent and how much they’d be comfortable going up from there, if any. Finally, they hit up the mortgage broker, have them run the numbers and get some final, definitive answer on what the bank will allow them to finance and spend.

Somewhere amongst all those numbers they pick a price that sits well in their heart, their mind and, hopefully, their monthly budget, as a maximum home purchase price – complete with its corresponding monthly expenses like taxes and insurance.

Unfortunately, there are a few critical line items that commonly slip through the cracks of one or more of these calculations. Our mortgage pros only know what they have in front of them, which is mostly based on expenses that show up on our credit reports or loan applications. Additionally, when it comes to our DIY budgets, we often create our household spending plans based on our ideal spending patterns, vs. our actual ones.

One critical exercise to do before you lock in a price range is to look back at your bank statements and spending breakdowns from the preceding few months to see how your actual spending measures up against what you think it should be. Find the places where you need to either adjust your spending or your budget to reflect reality before you buy a home. The other critical exercise is to understand what expense categories should be factored into your calculus on how much house you can afford, even though they are commonly viewed by budget software and banks as discretionary or even luxury line items.

Here are four of those overlooked expense buckets to make sure you consider:

1. Essential “Extras.” Sometimes what we say is important to us is slightly different than what is really important, but I believe you can tell what someone values by what they invest their time, energy, love and money in. So, it’s no surprise that there are lots of meaty expenses that some home buyers-to-be see as essential which a bank or even a financial planner might not have on their radar screen.

Just a few of those items include:

▪   Charitable giving and religious tithes, dues and offerings

▪   Expenses related to caring for an aging parent

▪   Non-western health cares and therapies that are not covered by your insurance, like acupuncture, massage and chiropractic.

I call these out in particular because they are categories which millions of Americans spend hundreds or thousand of dollars on every month – and because there might be no place to even enter such an expense on a loan application or budget software. If you invest a great deal of cash into these items and value them enough to keep doing so after you close escrow, make sure you factor them into your own decision making about what you can afford. It’s permissible – even advisable – for your personal price max to be a lot lower than what the bank deems your top dollar.

2. “Superfluous” Cushion Stuffing. Ding dong, the recession’s over, folks! And we made it through. But during those long, dark years, many people cut back on investing and saving for rainy days and retirement days alike. If that’s you, and your personal economy has recovered enough to support buying a home, congrats! Just make sure you circle back to those recession-era cutbacks and correct for them before you increasing your monthly housing spend. You might want or need to save more than traditional financial guidelines would suggest in order to reposition your retirement or to fluff your cash cushion back up to your personal comfort level.

Make sure you don’t overextend yourself on a home without accounting first for stuffing the cushion(s) you’ll need in the future.

3. Enriching Experiences. Buying a home is one of the single-most high ROI (return on investment) life enriching experiences a person can have, if it’s done smartly and sustainably. But lots of us also invest lots of dough into other enriching experiences, and want to avoid being so cash poor we can’t afford any of them after escrow closes.

Some of the big-ticket items that you might be expending cash on to engage in include:

  • Travel, vacations and family outings
  • Trainers, coaches and therapists
  • Yoga and mind-body wellness activities
  • Retreats and workshops
  • Schooling, conferences, basic and continuing education

If you decide you’re willing to cut back on these sorts of things or forego them entirely to redirect those funds into your home, that’s fine. Just make sure you go into that decision with eyes wide open, while you still have time to decide to spend less so you can continue to engage in these enriching activities.

4. Kid-related Cash Outlays. The honest-to-goodness truth about kidlets is as follows: they cost. Sure, the rewards of parenthood are well worth the cash expenses, but the costs are considerable and are often overlooked when it comes time to list out the line items relevant to how much you can afford to spend on housing. The big ones generally get on the list, like monthly child care for very young children and private school and college tuition for the older ones.

Lots of others get lost in translation of your ideal spending categories and allocations against where your money really goes on a monthly basis. Items that often get underestimated or flat-out omitted in this category include:

  • Extracurriculars – language lessons, music lessons, clubs and classes
  • Gear and equipment – all the gear they need to engage in the above, but also things like pricey school books and educational electronics
  • College Savings – Whether or not you have a formal 529 plan, if you have children you hope to help pay for higher education, you should be allocating some level of regular savings for this.

ALL: What sneaky expenses have you underestimated when trying to build out a budget or understand what you can really and truly afford to spend on housing?

I read this article at:  http://www.trulia.com/tips/2014/03/4-saving-solutions-for-buyers-on-a-budget/?ecampaign=cnews&eurl=tips.truliablog.com%2F2014%2F03%2F4-saving-solutions-for-buyers-on-a-budget%2F

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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Please enjoy my personal journey through homeownership at:

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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

 

Think You Cannot Afford to Buy in the Bay Area – Think Again…

When the SF Chronicle published that in order to buy a home in the Silicon Valley a buyer needs to earn a minimum of $150,000 a year, the groan was heard across the Bay Area as 1st & 2nd time homebuyers cringed when they looked at their w-2’s.  Trust me – I know the feeling.  Born and raised in beautiful San Carlos I knew it was only a matter of time before our property values would tip $1,000,000.  Of course I was just 16 when I made this prediction and sadly no one listens to the young.

Now that I am a professional Realtor, going on 11 years in this competitive industry, people start to listen.  Finally!

Yes, in order to buy a 3 bedroom 2 bath home on a 5000 sqft lot in just about any town on the peninsula it is going to take a lot of pretty pennies.  But before the 1st and 2nd time homebuyers give up – lend me your ear for just a second.

As a 2nd time homebuyer myself.  (Just sold my 1st place last year), I’ve been saving my money like crazy – and it doesn’t seem to add up to much when homes in the area are selling for over their listed price with multiple offers.  Trust me, I feel the sadness so many buyers are feeling right now.  However there is hope!  We just need to change our goals.

So the Silicon Valley is getting very very pricey.  When clients think about buying their first place, they often think of buying the home they plan on living in for the next 10 years.  Which is a wise plan, but if you are not raking in the $150,000 income – don’t think you cannot buy.  Just think outside the box.

I recently sat down with my broker to chat about my plans to buy another property and the sentiment I’ve heard from prospective home buyers around the peninsula.  His advice – buy investment properties.  Maybe not in the immediate area, but down South or the East Bay where there are MANY well-priced opportunities to buy.  So you might not be planning to live in Antioch – but there are many people who are and buying an investment property gets your foot in the Real Estate door.  Yes, you will become a landlord with home responsibilities.  But then again, if you wanted to buy a home in the first place you are pretty much signing up for a lifetime of being your own landlord and caring for any property you purchase.  So the flip side here is – you are the landlord and you reap the benefit of INCOME on your investment property.

That income can be used to buy another property.  Once you become an investor, you can 10-31 exchange one investment for another, convert it to a primary residence (consult with your tax advisor for restrictions) or simply continue to pay the mortgage and keep collecting your income.

Don’t have enough money to invest by yourself?  Find other like-minded individuals with capital and form an investment group.  There are some restrictions so I do advise you consult a Realtor (I am always available)  and a Real Estate Attorney to draft an investment agreement.

The benefits of buying your first investment property are similar to buying your own home.  There are tax incentives and there are headaches.  But in the game of Real Estate – the only way you can advance is to become a player in the game.

What are your thoughts on investing in Real Estate or forming an Investment Group – I’d love to hear YOUR opinions!

I wrote this article – thanks for reading – Sabrina

 

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

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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

VISIT OUR NEW INSTAGRAM PAGE:  http://instagram.com/thecatonteam

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

Connect with us professionally at:  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 Caton Team – Susan & Sabrina – A Family of Realtors

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