The Real Estate Beat

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

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

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

Free Mobile Real Estate App – By The Caton Team for iPhone & Android

Do you ever find yourself driving around and curious about a house for sale? Would you like info on a property without having to call or email anyone? Then you need our Free Mobile Real Estate App. On your phone please visit: http://thecatonteam.com/mobileapp

We hope you enjoy it – let us know how it works for you!

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

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

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

7 MORE Hidden Costs of Ownership – Great article I wanted to share by Tara @ Trulia

7 MORE Hidden Costs of Ownership – Great article I wanted to share by Tara @ Trulia

Spreadsheets are a double-edged sword to today’s smart home buyer. They empower you to track and easily calculate out all sorts of scenarios around your home buying and ongoing costs, allowing you to take the age-old art of due diligence to the next level with today’s technology. This helps you feel like you’re doing your job and are in control of your purchase, your process and your finances–and like you have a plan that covers every contingency and allows you to make the right decisions.

But have you ever heard that saying about the best laid plans? Owning a home is like being responsible for any other constantly evolving, complex organism: it is not 100 percent predictable. You can absolutely get a handle on your mortgage and interest, and ensure that they are predictable for the life of your loan. But try as you might, even the most diligent and financially responsible of spreadsheet stars can (and often do) miss some home-related expenses.

Don’t let the potential for unexpected costs of home ownership turn you off. Do let it underscore the brilliance of adding in a line item for cushion and buying slightly below what you can afford. I once heard a very frugal friend scoff at the concept of “emergency savings.” Surprise car and home repairs, unexpected medical expenses and such are not “emergencies”, he argued, “they’re just a part of life!”

Having some financial margin positions you to live the good life–with respect to your home and every other expense category in life.

That said, it is within our power to do a better job of predicting the frequently overlooked expenses associated with owning a home. We’ve talked about the hidden costs of home ownership before, but here are a few more our new home buyer friends have called out – consider inserting spreadsheet rows accordingly!

1. Yard maintenance. The American Dream of a white picket fence with a beautifully manicured lawn and trimmed hedges may be in your near future. But think about the maintenance and cost that look requires. Never had a yard before? Get ready to buy a mower, edger, hedge trimmers, gardening tools, plant food, weed killer, etc. Even if you’re an experienced gardener with all the tools you’ll ever need, at minimum you’ll want to buy your own plants and outdoor accessories to help make the space your own. No matter what, you’ll take more trips to the local garden center than you can count!

And this doesn’t consider the value of your time—regular mowing, weeding, edging, and pruning can take up a considerable chunk. You may find that it’s a better use of your time and money to find a quality, cost-conscious gardener (or enterprising teenager) to help keep your curb appeal.

2. Furniture and décor. “I came way in under my decorating budget,” said no one, ever. There’s no getting around it: decorating a new home is expensive. And even if you already have enough furniture to technically fill your space, you may get there and decide it just doesn’t look quite right.

Selling your old pieces can give you a leg up on paying for the new ones. And if you’re not in a hurry to buy immediately, scour local consignment stores and check Craigslist to find great deals that will match your style. And never underestimate the benefit of a great family photo or inexpensively framed kids’ art to help warm up a space and make it your own—no big costs there!

3. Cost of living. Moving to a new state, or even to a new neighborhood? The basic cost of living can vary widely from location to location. Check out prices at things like nearby grocery stores, local restaurants, gas stations, and dry cleaners. Even the daily commuter costs can add up to a big chunk of change; adding a train stop or two to your daily commute can have a large impact over the course of a year. Work these differences into your monthly budget before you move, and prevent surprises once you’re there. (Bonus if you’re moving to a less expensive location!)

4. Moving expenses. Seems obvious? I know. But there’s more here than what initially meets the eye. It’s not just the cost of the moving truck or movers themselves. Consider things like any additional moving insurance you may purchase, the price of gas, long distance travel fees, and charges for things that aren’t packed when the movers get there. Most moving companies can give you pretty good estimates of the moving costs in advance. Reach out early so you can plan ahead.

But these moving expenses are just step one—there’s the settling in period to consider, too. If you’re like most people, the last thing you want to do when you get to your new place is quickly unpack your kitchen to cook a nutritious meal. Get ready for a week of take out and eating out! Once you are ready to cook, there’s the price of buying that first round of groceries to fill your completely empty fridge and pantry. And then you have to buy things like furniture pads and a doormat to protect your floors, hardware to hang family photos, new cleaning supplies, shower curtains, and other home necessities. The expenses in the first couple weeks of your new place add up fast—not to mention the massive down payment you likely just made—so be ready!

5. Pest control. Got a good pest report from your inspection? Fantastic! But that’s just the initial read. Buy during the summer, and you may be surprised to see ants and other tiny creatures seeking comfort in your home from the cold, wet winter. One bad infestation can lead to another, and you may soon find yourself paying for quarterly (or more frequent) pest control.

Even worse: termites. No termites at the time of inspection doesn’t mean no termites for life—or even for the first year, for that matter. Paying for regular inspections may feel like unnecessary money to spend, but if you’re in a termite-prone location, it may save you in the long run!

6. Utilities. I’ve mentioned this before, but it’s worth repeating. Until you’ve lived in a house for all four seasons, you won’t know how much energy you’ll use. And neither seasons nor energy costs are consistent year-over-year. You may find yourself suddenly paying hundreds of extra dollars a month for air conditioning during a record-breaking summer. Or have a three-year old who’s suddenly afraid of the dark? Get ready for a lovely lift in your electric bill! Then add in cable, internet, water, garbage, sewer, and other local fees.

Once you’ve been in the house and have an idea of what you expect to pay, you can try to stave off monthly fees by investing in things like more energy-efficient appliances, a new furnace, solar panels, or a whole-house fan. Do the math to see what those upgrades will save over time, because although they may cost a lot upfront, when amortized over a few years, they may be worth it.

7: Annual maintenance. When you had a landlord, remember how awful it was to constantly have to call when the heater broke or the A/C went on the blink. Here’s a hint – when you own your home and these major home systems and appliances become your responsibility, you can often prevent major breakdowns and even optimize their function (read: have lower energy bills) by having them serviced and maintained as recommended.

Of course, maintenance costs! It’s not overkill to work through your appliance manuals and get a sense for how often your washer, dryer, A/C and heating need to be serviced, as well as such essentials as the septic system, if you have one.

This sort of maintenance can help prevent major breakdowns. But they’re not always 100% unavoidable. This is when a home warranty helps (so long as you call the warranty company before any other repair person touches the ailing appliance.) While most smart home buyers *get* the critical nature of having a home warranty many are unaware that it needs to be renewed annually or treat the renewal cost as a non-essential.

Fact is, if your home warranty covers one broken heater, major plumbing drama or A/C that gives up the ghost, that coverage can offset the renewal costs times ten (or more). The upshot? Maintenance and home warranty renewal definitely deserve a line item on your spreadsheet.

My two cents: It’s easy to scare anyone with the truth. Growing up in our homes, we didn’t think about the cost of living there, but I’m sure we hated mowing the lawn on Saturday while our friends were at the movies.

Yes, owning a home is a never-ending list of ‘to-do’. In our first home, on a Thursday at 5pm – the water heater broke, pouring gallons of hot, steaming water onto the balcony. Thankfully I had a great contractor who came out and fixed it that very night! It set us back $$$$ and it was a “surprise” we knew was coming. We should have just replaced it when we moved it but we didn’t. Live and Learn.

However, we have to live somewhere and I would rather own my home with all its headaches than live in a white-walled rental. Nonetheless, homeownership is not for everyone. The Caton Team is happy to sit down and answer your questions. We are just a call or click away.

I read this article at: http://www.trulia.com/blog/taranelson/2013/07/7_more_hidden_costs_of_ownership?ecampaign=cnews201307D&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F07%2F7_more_hidden_costs_of_ownership

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

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

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

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

Please enjoy my personal journey through homeownership at:

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/

http://ajourneythroughhomeownership.wordpress.com/

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

Please enjoy my personal journey through home ownership at:

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/

http://ajourneythroughhomeownership.wordpress.com/

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

Please enjoy my personal journey through homeownership at:

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

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

Buying the Perfect House – True Story

Buying the Perfect House

When we dream of our first home, the sky’s the limit. We dream of spacious bedrooms and a terrific yard ready for a BBQ. We dream of custom kitchens with architectural detail. We dream of thoughtful neighbors and the right school district. We dream and it is awesome.

Then comes reality. The house on the perfect street has a vintage kitchen. Or the home with the spacious family room abuts the freeway. Often times a buyer grows frustrated looking for their perfect home.

Let me spare you some heartache. YOUR perfect home is not out there. Why? Because you haven’t made it yet!

Yes, it is that simple. In our 25+ years of real estate experience, we have gone down this path with each buyer we meet. Some are quick to realize and quick to adjust. Others refuse to budge and often lose out on some great opportunities.

It’s probably the hardest conversation to have with a buyer – aside from the ‘you were outbid’ talk. Because it forces a buyer to quickly adjust their needs and wants list – if – they want to become a homeowner here in the gorgeous San Francisco Bay Area.

How can a buyer make the right decision? That’s a great question – because there is a perfect home out there – you just have to see its potential.

Determine your true budget. That means, before you start looking at homes, you’ve written out your monthly budget as it stands today – AND – you’ve written out your budget post home purchase. The worst feeling in the world is writing an offer and being unsure you can afford the offer price. So part of a buyers homework is to determine how much you can afford on the monthly mortgage payment and then talk to a bank. Often times the max purchase price the bank says you can spend – isn’t what you feel comfortable spending. And that is the information your Realtor needs to know BEFORE they start house hunting for you.

o Make sure your budget accounts for more than just the mortgage payment. Home ownership includes property taxes,

insurance on the home, and a reserve fund for those expected/unexpected home repairs.

Determine why you are buying your home. Do you need more space? Are the kids starting school and you want to settle into a nice neighborhood? If you can pinpoint exactly why you want or need to buy – your Realtor can help hone in on the homes that fit the bill.

Make a true Needs and Wants list. Be ready to adjust that list as you see what your can afford.

Be Flexible. In our experience – 9 times out of 10 – a buyer buys a home that doesn’t fit the original plan. Why? Either they fell in love with the home or they realized what they thought they wanted was out of their price range or what they thought they wanted was more of a wish than a need.

Be REALISTIC! The hardest part of the home buyer journey is the reality check. You cannot expect to buy a three bedroom two bath on the Peninsula if your budget is only $400,000. And being a stick in the mud isn’t going to help you! Ask your agent how they think you can get the most bang for your buck. Often our first time buyers find a better opportunity when they open up to other areas or types of homes.

Whatever type of home you are looking for in the Bay Area, The Caton Team is here to listen to your wants and needs and work with you to achieve home ownership. What can we do for you?

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

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

What Will Waiting to Buy a Home Cost You?

What Will Waiting to Buy a Home Cost You? Great article from Realtor.com

At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5 percent, up from 3.9 percent on June 1 — and a notable jump from the historically low 3.35 percent monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home.

These moderate increases in payments may still be manageable, particularly if buyers look at less expensive properties, or negotiate a lower price.

For example, the difference in monthly payments for a $200,000 home at 3.9 percent and one at 4.5 percent is just $70.03. If budgeted correctly, this could be a manageable expense.

Rick Allen, chief operating officer of Mortgage Marvel, is one expert who says now is still the time to buy a house. His platform records online mortgage loan applications, about a million transactions a year, which serves as a barometer for how well the housing market is doing. He says that refinances are down, as to be expected with a rate increase, but that “shouldn’t scare people off.”

“Relatively speaking, rates are still at or near historic lows,” says Allen. “A 4.5 percent mortgage is still an incredibly attractive rate at which to finance a home. From a real estate perspective, we’re not far off from recent lows, and we’re heading to improve real estate values. The combination of those two factors make this still a good time to buy.”

As the unemployment rate continues to decline, Allen says we’ll see more potential homeowners enter the market as well. Though Allen says “theoretically, rates could go through the roof or back down to the floor” but he personally believes we’ll see rates around 5 percent through the end of the year.

This is the early stage of the recovery of the housing market, and the rising interest rates encourage potential home buyers to be more decisive, and act quickly. As more homes are bought, supply decreases, so prices may rise even further. So if you’ve been thinking about buying a home, don’t lose your confidence, but it may be prudent to act quickly as rates continue to rise.

My 2 Cents

I couldn’t agree more – and I am NOT trying to fear monger. The truth of the matter is – no one has control of the Real Estate market. We as a collective influence the market by our actions or lack of – but it the end – the market will move at its own pace. In our experience, those trying to figure it out or ‘play the game’ generally miss the boat of opportunity.

Instead The Caton Team has our clients consider what their overall plan is, and generally having a home to live in is pretty high on their list. So we tackle the market in the moment and do our best to achieve their goal of homeownership.

I read this article at: http://www.realtor.com/news/what-will-waiting-to-buy-a-home-cost-you/?cid=EML301130

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

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

Please enjoy my personal journey through homeownership at:

Thanks for reading – Sabrina

Will Rising Mortgage Rates Cool the Market?

What a FANTASTIC question that Realtors and their clients are certainly thinking. Please enjoy this article from the Daily Real Estate News.

A big jump in mortgage rates over the past two months may start to cool the rapid rise of home prices in the second half of the year, The Wall Street Journal reports.

Mortgage rates have shot up from lows of 3.59 percent in the beginning of May, to 4.58 percent during the last week of June, according to the Mortgage Bankers Association. Rates are at their highest levels in two years.

“A rule of thumb holds that every one percentage point increase in interest rates reduces affordability by 10 percent, so the recent move in rates just made homes about 10 percent more expensive to buyers who need to finance their purchase,” The Wall Street Journal reports.

Still, economists say mortgage rates at 4.5 percent or 5 percent is still very affordable by historical standards. Merrill Lynch analysts say that home prices would have to rise by 20 percent or mortgage rates would have to soar to around 6 percent to chip away at housing’s affordability.

Some economists see rising mortgage rates as a positive. John Burns, chief executive of John Burns Real Estate Consulting, says that rising rates produce more sustainable price increases. “I don’t think it’s the end of price increases, but I think they’re going to moderate significantly,” Burns told The Wall Street Journal.

Source: “Why Home-Price Gains Will Slow Amid Higher Mortgage Rates,” The Wall Street Journal (July 8, 2013)

I read this article at: http://realtormag.realtor.org/daily-news/2013/07/09/will-rising-mortgage-rates-cool-market?om_rid=AACmlZ&om_mid=_BR3FkGB8zy7Id2&om_ntype=RMODaily

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