Chris – Page 12 – OC Neighborhoods

Should I Use a Buyer’s Agent or a Lawyer?

Home buyers must keep several things in mind. A top-notch buyer’s agent represents your best interests. A buyer’s agent has a fiduciary relationship with the buyer, and divulges information to the buyer that materially affects a buyer’s best interests, even if that information is unfavorable to the seller.

The best buyer’s agent places your needs above their own. When you go out to purchase your home without an agent, you give up all of these things.

The biggest problems occur when a buyer tries to purchase a for sale by owner home without a Realtor.

One of the biggest advantages of a Realtor is that he or she is an expert on the neighborhoods in the area you are buying. They are familiar with the school districts, zoning, HOA, property taxes, mello-roos, property values, commute times, etc.

Thinking of getting a break on the commission.
The seller’s agent and your agent traditionally split the commission. Lots of buyers shun using an agent in the hopes of discounting the commission because one agent is not in the picture anymore which seems logical.

However, the seller’s agent (listing agent) usually has a listing agreement that the seller will pay 5-6% of the sales price regardless of a buyer’s agent being present or not. So, it’s unwise to believe that the listing agent will cut their commission. Yet, some agents do just to get the sale through, especially the large companies.

Negotiating
Are your negotiating skills well developed? The majority of homebuyers are not used to writing offers and have mastered the art of negotiation. Your week is probably consumed by 40+ hours a week for your job, then your kids, and then your outside activities.

Real estate agents on the other hand negotiate for multiple clients each week or month, so this is this job and the good ones know how to negotiate on price. They understand what can affect home values just like the listing agent does. Don’t expect to come out on top of the negotiation side simply because you are a CEO or did six or more years of college.

Added Proof
The difference between a buyers and sellers agent is huge. When a buyer goes straight to the listing agent you lose out on having an agent represent your best interest. The listing agent owes a fiduciary duty to the seller, first and foremost. Their job is to get the highest and best price for the seller period.

You may still want to save some money by using a real estate lawyer. According to the California Bureau of Real Estate. A lawyer can become a real estate broker right away. They can bypass the sale agent license s their educational requirements surpass that of a mere sales agent.

Disadvantages of Hiring a Real Estate Lawyer
A real estate lawyer may not have the negotiating experience or experience of a sales agent. In this case, education does not make you an expert or the preferred choice.

Another drawback of using a lawyer is they are not usually available to talk to you after 6pm on weeknights. And you want to go under contract with on a large transaction with this limited availability?

Real estate lawyers mostly handle litigation or legal aspects of real estate transactions such as a deal that went sour and buyers want their earnest money deposit returned.

They don’t have access to real-time active homes available on the market? Zillow is notoriously lists property’s late. I cannot count the number of times that I personal called about a home that showed it was listed in one day is already under contract.

A buyer’s agent is a great choice when looking to buy a home, especially if you are a first-time home buyer in Orange County.

Choosing a Real Estate Agent in 2018

The following are ways you can evaluate a real-estate agent’s potential success to represent you to buy or help you sell your home before you engage their services.

Check references
Ask the agent to give you a list of properties they’ve sold or helped the buyer obtain in the past year, along with their contact information. Find out how long the home was on the market, what the list price was and then see how much the final contract price was.

Check their licensing status
Find out if the prospective real-estate agent has had any complaints or disciplinary actions. Simply navigate to the Bureau of Real Estate. Make sure their license hasn’t expired as well.

Pick a winner to represent you
One item that goes a long way is winning an award by your industry peers. Did they receive a “Realtor of the Year Ward” by a recognized state or local agency.

Review Credentials

Real-estate agents can specialize in one area just like engineers. The following are some professional designations to look for:

CRS (Certified Residential Specialist): Successful completion of educational courses in dealing with residential real estate.
ABR (Accredited Buyer’s Representative): Completed further education in buyer representation.
SRES (Seniors Real Estate Specialist): Fulfilled classes focused at helping buyers and sellers who are 50-years and above.

How many years of experience do they have

The CA BRE has a consumer section that allows you to see for yourself how long they have been licensed and at what companies.

Ideally, you’re looking for an agent is very knowledgeable about the neighborhood and has more than five years’ experience unless their first impression simply dazzles you and they have a support team to ensure success.

Check where the agent markets their listings

See what websites and media the agent uses to effectively market properties. Zillow and Realtor.com are top websites where should find their current listings and sold properties.

The majority of home buyers begin their search on the Internet, and you need an agent who utilizes that platform to the maximum.

Ask test questions

A good real estate agent should know about other area properties in the neighborhood that sold or are still listed. If the agent knows about a property you bring up and can provide you with some details, that is a good sign he or she does know your area, and the neighborhood.

Do You Work with a Team?

An agent who is part of a team can offer a lot of advantages. Some team members will have more in-depth knowledge of specific situations than another. Most will have broad knowledge and experience that will help in numerous situations. However, you don’t want to work with one agent one week then be tossed around to a second agent and another after that.

Would You Reduce Your Commission?

Not all real estate agents are equal; Keep in mind that around 10% of the agents do about 90-percent of the transactions. Each agent his or her own budget for advertising and marketing your property. By going with an agent who has a big budget, you might gain more exposure to a larger pool of buyers. The more buyers and bidding on your property in increases the odds of a full-price offer (or above list price).

If you’re buying a home and selling a home simultaneously, giving both transaction commissions to one agent may seem excessive. You may want to stipulate you get a full-price offer on your home and purchase the new home a certain percentage below list price.

5 Things to Know When Buying a Home in California in 2018

The following are five things you need to know when purchasing a home in California in 2018.

1. Orange County, California home prices are slowing down, but still rising
Home price appreciation throughout Southern California has increased annually for almost six straight years, with houses changing ownership in a short time span, generally at or above the list price. Orange County’s median home prices have surpassed the record highs established during the housing bubble of 2007.

In fact, the Bay area counties of San Francisco, Marin, San Mateo and Santa Clara in Silicon Valley have similar stories. What has helped offset high home prices tremendously are low mortgage interest rates, which have averaged under 4 percent on a 30-year fixed.

Industry experts are predicting home prices will continue to increase by 4 percent to 5 percent in 2018. Some real estate analysts have forecasted that with the exception of surprising events, home prices may continue climbing for several more years. Prior to the last housing crash, prices constantly went up for 10 years.

2. Loan limits have risen
The conforming loan limits for a large majority of counties in California were increased for 2018. In 2018, the conforming loan limit will go up to $453,100 for most counties in California and for high-cost counties like Orange, Los Angeles and coastal counties the limit will be as high as $679,650. FHA loan limits will range from $294,515 to $679,650, based on the county where the property is located.

Keep in mind that home buyers with adequate income can get larger loan amounts than these count limits. When that is the case, the buyer will be applying for a jumbo loan.

3. Mortgage rates are also likely to go up
Economists are forecasting a progressive rise in mortgage rates in 2018, yet the average 30-year fixed home loan rate is not predicted to go above 5% for quite a while.

The government service enterprise Freddie Mac adjusted its long-term prediction for the U.S. housing market. They expect 30-year mortgage rates to finish at 4.4% through 2018 and to average 4.7% in 2019. Many other industry professionals and economists share this same view too.

4. The down payment can be less than 20-percent
The notion that a home buyer needs to put down a minimum of 20% when buying a home is a myth. In 2017, real estate industry groups conducted a survey that shows many home buyers believe the opposite.

In today’s housing market and even since the early 2000s, there are home conventional loan programs which allow for down payments of only 3%. FHA requires 3.5% and the VA loan offers a zero down program for eligible borrowers.

5. Housing inventory is remains low in most cities
The supply-and-demand dilemma in California’s housing markets has been disproportionate since 2010. The demand from buyers is robust, but there simply is not enough inventory to choose from which has helped raise home prices. This has triggered bidding wars among buyers which results in paying over the asking price and/or paying for the portion of closing costs the seller normally pays.

And these trends will probably remain in 2018, to some degree. New home construction in Southern California has increased over the last few years, but that has not stabilized home prices or demand for real estate.

Orange County’s Top Workplaces for Healthcare

The following Healthcare-related companies have been recognized as Top Workplaces in 2017 based solely on surveys about the workplace completed by their employees. They were named by the OC Register and numerous other highly acclaimed organizations.

Marque Medical – Midsize company with 118 employees
Provides a solution to the jam-packed primary care offices and costly emergency rooms, our urgent care centers are properly staffed with experienced, multi-specialty physicians who are dedicated to the wellness of our patients.
Locations: Aliso Viejo, Buena Park, Mission Viejo, Newport Beach, Pacific Beach in San Diego, Rancho Santa Margarita.

SureFire CPR: – Small-sized company (40 employees)

An industry leading CPR training center located in Orange and Laguna Hills offering classes for CPR certification, ACLS certification, PALS certification, BLS certification, First Aid and more. They provide a team of professional firefighters, paramedics, nurses, and emergency medical technicians to respond to 911 emergencies each and every day.

Pacific Companies: Small-sized company with 36 employees
Helps staff hospitals, health care systems and private practices with quality physicians.
With 29 specialty practice areas ranging from Anesthesiology to Urology.

Orange Coast Memorial Care – Large company with 1,528 employees
A full service hospital and the only nonprofit hospital located in Fountain Valley. Known for delivering high quality patient care, ratings of excellence in nursing and superiority in patient care and identified as one of the “Best of Orange County”, by readers of the Orange County Register. In addition, US News and World Report named the hospital as one of the best regional hospitals.

Staffs more than 300 physicians, which includes over 80 orthopedic specialists. They specialize in treatments of the knee, hip, spine, shoulder, elbow disorders and take pride in their focus of sports medicine, orthopedic trauma and care of the extremities. Locations are in Irvine, Newport Beach, and Orange.

Coury & Buehler Physical Therapy
Small company with 85 employees
Offers the best, most highly trained staff of physical therapists in a state-of-the art facility.
Anaheim, Anaheim Hills, Brea, Orange, Irvine, Lake Forest, Santa Ana, and Tustin.

Get in touch with us about neighborhoods close by your job location. We have knowledge and daily updates of homes for sale in south Orange County.

Things That Can Go Wrong When Under Contract to Sell Your Home

During a hot real estate market, homeowners feel confident about their home’s appreciation and keep an eye out for a potential new place to buy. While it is true, a majority of homes sell routinely without problems, some sales do have problems that arise.

With that being said, the following are things that can go wrong during a home purchase transaction:

Making bad decisions based on advice from friends and family members who have no experience in the real estate industry.
Seller or buyer are not willing to negotiate.
The home inspection uncovered major issues that neither the buyer or seller are willing to pay to repair.
The appraisal report comes back substantially below the contract price.
The appraiser is unable to find comparable properties for the lender so the financing falls apart.
The buyer does not want to remove loan contingency because they have not satisfied the underwriting conditions.
The buyer’s letter was a pre-qualification, not a full pre-approval which verifies credit, income, assets and job.
The buyers are unable exit their current lease without paying a large lease cancellation fee.
The buyer didn’t lock the interest rate and does not qualify at the higher interest rate.
The closing date is pushed back due to buyer or lender errors or incomplete documents.
The title search shows liens, leased land, oil rights, etc that cause a delayed closing.
The pest and termite inspection finds the home is significantly infested.
Buyer or Seller has to abruptly go out of town and did not remember to obtain a Power of Attorney.
During escrow, the Buyer or Seller encounters a life changing event.
Someone fails to disclose pertinent information relevant to the transaction.
Buyer or Seller gets cold feet and wants to back out of the deal.
The home is not insurable due to a variety of reasons, newly designated fire zone, recent land movement, etc.
The buyer makes a major purchase on credit just before closing that exceeds the loan program’s maximum debt to income ratios.
Seller decides to not sell because the job transfer is cancelled, marriage reconciliation, and so on.
Seller is unable to locate an acceptable home they want to buy.
Seller does not let the appraiser or inspector see the home’s interior.
Seller does not have sole authority to sell property due to other owners.
Seller gives knowingly false pertinent information about the home and neighborhood to the buyer.
Seller does not sign final closing documents.

Picking the wrong real estate agent! Using an experienced, well-informed licensed agent can get you to the finish line. They understand the challenges and how to solve them. It’s important to get to good real estate agent.