Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You’ll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for
Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
- One or more detailed maps with your areas of interest highlighted.
- A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.
- Paper and pen, for taking notes as you search.
- Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.
- Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
- Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
- Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don’t make a hurried decision that you may regret later.
- Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:
- Include inspection & mortgage contingencies in your written offer.
- Have the property inspected by a professional inspector.
- Request a second walk-through to take place within 24 hours of closing.
- You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).
- All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.
By RE INSIDER
While home sales throughout much of California have remained flat throughout this spring and early summer, a new study has indicated that multimillion dollar homes are selling in record numbers, offering hope that the market is still improving and prompting many to wonder what’s holding the rest of the market back.
According to a recent study performed by San Diego-based DataQuick, $1 million-plus sales grew at a 9.1% clip statewide compared with last year, while sales overall fell 7.4%. Additionally, California in the second quarter set all-time records for the number of homes sold for more than $2 million, more than $3 million, more than $4 million and more than $5 million.
What’s driving these high-end home sales? According to market-watchers, there are several factors.
One is the hot technology sector in the Bay Area and some affluent parts of Southern California, which is minting new millionaires who can afford seven-figure homes. Another is the 11.6% price growth in California over the last year, which means a house worth $925,000 last summer may be worth $1.03 million today. And there’s the influx of international buyers, which is pushing up prices at the high end.
“It’s always fascinating to watch this part of the real estate market. It behaves differently, responds to its own set of criteria,” said DataQuick analyst Andrew LePage. “These buyers, especially those in the multi-million-dollar market, are less likely to agonize over credit scores, income and job security, down payments and mortgage interest rates.”
With this in mind, do you think this the market is improving as a whole? And considering that mortgage rates remain historically low, what do you believe is holding other buyers back?
READ MORE HERE
“Country Life with City Conveniences”
In Case you missed our Bi-monthly Rolling Hills Newsletter, here is the article we posted on our front page, in continuation of our History of Rolling Hills we decided to make this month all about the street Williamsburg Lane, which has a lot of history & where we happen to have one of our listings for sale on Williamsburg Lane. This street has so much charm & exquisite architecture that can still be seen today. The following is taken from the book Rolling Hills: The Early Years by A.E. Hanson
“ Williamsburg Lane, Virginia was the outgrowth of a number of visits I made to the Eastern seacoast. As a landscape architect, I was fascinated by what the Rockefeller family was doing to restore the original old, southern-colonial city of Williamsburg, Virginia. At one time, Williamsburg was the State capitol of Virginia.
To an architect and to a landscape architect, Williamsburg is seventh heaven. It is living history, and I wish every American family with teen-aged children could have the opportunity to travel to Williamsburg and see how America really started.
In Williamsburg, Virginia I fell in love with the housing of the craftsmen, villagers, and shopkeepers who lived there prior to the American Revolution. The design of these homes was Georgian. They were very small cottages, and were fine in detail. I thought what fun it would be to do a whole lane in Rolling Hills patterned after the small houses of Williamsburg.
Homes on Williamsburg Lane, Rolling Hills were going for sale for under $9000, what a steal & great investment.
When I returned to Rolling Hills I couldn’t get that idea of my mind. What fun it would be to build a village lane with all the homes made of wood, painted white – and I knew I would like to live in any one of the homes that I had in mind.
I contacted Paul Williams, (he had a particular talent in designing fine Georgian home for very wealthy clients) and suggested that he design an entire lane of homes for me – fourteen, to be exact. The land that I had chosen was just to the west of Acacia Road, on a ridge.
Financially, it was a very successful project, and anyone looking at the original advertisements shown in the counter book at the City Hall of Rolling Hills can see how great a bargain it turned out to be. One could buy an acre of land, a beautiful little house, landscaped with full-grown olive trees – all for $8,750.00. It was quite a bargain, and people bought them.”
PAGE 76. Excerpt from, Rolling Hills: The Early Years by A.E. Hanson
This photo shows the three original houses on Williamsburg Lane
NAR has released their annual 2014 Profile of International Home Buying Activity and it shows a significant increase in sales to international buyers. As the report states:
For the period April 2013 through March 2014, the total sales volume to international clients (“international sales”) has been estimated at approximately $92.2 billion, a 35 percent increase from the previous period’s level of $68.2 billion.
HOW MUCH ARE THEY SPENDING?
WHERE ARE THEY FROM?
WHERE ARE THEY GOING?
Their are many factors that go into how International Buyers decide which part of the U.S. they will move to. The Presence of relatives, friends and associates, job and education opportunities, and climate and location seem to be the most important. Europeans are more attracted to states with warmer climates such as Florida and Arizona. While the West Coast is attractive to Asian buyers. Buyers in Mexico prefer states in close proximity such as Texas, Arizona, California. Florida appears to be more attractive to South Americans as well as Europeans and Canadians. Buyers from India are located in urbanized areas and states home to IT companies such as California, New York and North Carolina.