home buying – Page 6 – OC Neighborhoods

Increasing Numbers of Homeowners Are Thinking of Selling

There are Encouraging Signs That More Homes May Be For Sale.

The era of low housing inventory could be shifting based on a recent home survey by the National Association of Realtors. The survey discovered that 80 percent of homeowners feel now is a great time to sell.

The days of tight housing inventory could be a blessing for many in Southern California where competition is fierce. Additional research can be found in Fannie Mae’s most recent Home Purchase Sentiment Index, increased by 1.2 points in August to a measurement of 88. The net result is a rise of 21 percentage points in 12 months of those homeowners who are seriously consider putting their home up for sale.

costa mesa street — Harbor Blvd Costa Mesa, source: Wikipedia

Invisible Inventory
The inventory for housing in Orange County has had low inventory and bidding has been super competitive for months. Home builders are trying to pick up the slack but another leading factor has been hesitant-to-sell homeowners.

As location and job growth continue to boost housing prices in Southern California, many owners just aren’t ready to put their homes on the Orange County MLS and then take their chances in the competitive bidding wars for their next home.

Local economic forecasters don’t anticipate a full housing recovery until the years 2019-2021. At that time, yearly sales volume should be close to 46,000 in Orange County supported by a strong local job market along with Baby Boomers retiring in large numbers, selling and typically purchasing smaller and low maintenance homes. Perhaps some will move out of state based on national surveys and more inventory in nearby states.

With approximately 80-percent of homeowners claiming now is a good time to sell their home, it can the optimal time to sell. It was only a year ago that 67 percent of homeowners felt that way. You don’t want to be selling when everyone is because that will drive down prices. So, listing your home for sale now actually could be a good time to sell.

First-time Home Buyers
A survey by NAR also discovered another positive sign: an increasing number of renters are confident about purchasing a home. As much as 62 percent of current renters believe now is a good time to be a homeowner. This is a 12 percent leap from the previous quarter. Locally in Orange County, the numbers may be less due to the higher home prices. However, condos and townhomes are great entry-level options for first time home buyers.

Many renters are motivated to buy due to having a more stable income and if their rent increases.

What to Do After Moving Into Your Home

You’ve finally completed the home buying process in Southern California. Now, that you’ve been given the keys by your realtor or the escrow company, it is all yours to do what you want and when you want.

The following are some great bits of advice new homeowners should do.

Introduce Yourself to Your Neighbors

It was pretty normal decades ago to do this with multiple neighbors dripping by, knocking on your door with some home-baked cookies and milk. The fact today is that most everyone is busy and doesn’t always have the time. So, take it upon yourself to meet them during a convenient time. You may just want to send out a few invitations to meet each other for a few minutes.

It helps to learn undisclosed things about the neighborhood your realtor may not know from residents. In addition, it’s good to build that friendship so you can look out for one another.

Save for Unexpected Problems

A new water heater could cost up to $2500. Plumbing repairs could be $1000. And even if you have warranties, generally you have to pay out of pocket and get re-imbursed. So it always pays to have a special account for unexpected problems that pop up along the way.

Inspect and Replace When Necessary

Replace the furnace filters regularly. If you purchased a resale home, you probably won’t know the last time they were replaced. A new home will not require this for a few years.

The same goes for your appliances. Determine how many years of usefulness are left as well as how well they’re functioning. Are they energy-star complaint to help you save money? Do you know how long the warranties will last?

Install Programmable Thermostats

Save money at the get-go by making sure the AC is programmed to stay off or at higher temp when you are not home for long hours.

Plant Trees by your Home

The trees will mature and provide much needed shade during the hot months to help cool down the home. Plus, it gives you a sense of settling into your own home.

Secure Your Home

It is recommended that you change the locks on all entry doors to the house. You got your keys from escrow, you never know if someone else still has a copy. Be certain that all windows open and close securely.

More Safety Measures

Every room should have a smoke detector. A functioning fire-extinguisher should be on each floor. Always have first-aid kits in a convenient area. In case of emergency, have an escape plan to get out of the house

Baby-proofing your home

Look for all household hazards that your little child may be curious about and eliminate potential problems. Start in the baby or kids room. The crib should only have the mattress sheet and your baby.

Toys are fine ONLY if you know they are safe and the baby is able to be monitored. Safeguard tables from falling over, install cordless blinds and window guards on the windows. Another must-have are electric outlet protectors on walls. There’s probably more but this is just to get you started.

These tips, except for the changing of locks) will help if you’re still renting too.

Buying in a 55+ Community in Orange County

Located south of Aliso Viejo and north of San Juan Capistrano, the city of Laguna Niguel is one of South Orange County’s most desirable areas. In the past few years, the area’s appeal has become even more desirable with new IT jobs and millenials making it their home.

As is the case in many places in Orange and L.A. County, those with high income in the tech industry are displacing lower income residents in areas that are adjacent to high tech hubs.

To remain competitive, people who are 55 years and older still have their own community in Laguna Niguel known as Monarch Summit II. Here residents are able to enjoy some great views of the ocean and hills, with an ideal climate that is breezy and a natural environment.

It has convenient access to Monarch Beach as well as the beautiful beaches of Dana Point and the Southern part of Laguna Beach.

— Monarch Summit II is a 55+ Age restricted community and features 190 single-story homes built in 1976 ranging in price from the Low $700s to the low $900s. Many homes have modernized interiors with granite counters, vaulted ceilings, new appliances and upgraded flooring.

Home come with floorplans varying from 2 to 3 bedrooms, 2 bathrooms and two car garages and living areas of 1400 sq. ft. to 1700 sq. ft.

There are HOA dues which pay for pool and spa maintenance, recreation facilities, a clubhouse in addition to professional landscaping.

This neighborhood offers not only affordability for people 55 years and up but also convenience to shopping, entertainment and all that Orange County has to offer.

Reasons to Buy
Statistics from the California, CoreLogic, Real Answers, S&P/Case-Shiller, FHFA report that:
– Homebuying is consistent, going up 0.1 percent in the quarter and 2.6 percent from the previous year.

Local home values continue to increase, going up 1.5 percent in the third quarter and 6 percent annually.

Other nearby 55-plus communities in South Orange County include the Talega Gallery community in San Clemente and the new community of Gavilan & Esencia in Rancho Mission Viejo.

It’s important to use a knowledgeable real estate agent to help with contract negotiations and industry insider statistics about the community.

Home Appraisal Was Lower Than Purchase Price!

In Some Cases Appraisers Make Mistakes

The lender wants to know the home fist before fully approving your mortgage loan.

Essentially, the value of your home will establish what loan programs you qualify for and, what mortgage rate is available to you.

Lenders depend upon licensed home appraisers to confirm a home’s “certified” value.

Sometimes, an appraiser determines the property’s value to be below what’s required for a specific loan program.

When your appraisal comes in under the estimated value, as a buyer or refinancing homeowner, the options you have are a few.

Appeal the Home Appraisal

Although appraisers use standard procedures and formulas to determine the home’s value, an appraisal is still the opinion of the appraiser, which means it is subjective.

An appeal may be warranted, if you’re able to provide documentation to support to an argument such as:

When the appraiser uses older “comparable properties”

The largest impact on a home’s appraised value is the recent sale prices of similar homes in the immediate neighborhood, preferably on the same street.

If the appraiser is using a nearby home which has less rooms (bedroom and bathrooms), and significantly less square footage, when another more comparable property is available, it is unreasonable.

An experienced Orange County real estate agent can help you locate more recent comparable sales.

When the appraiser leaves out home improvements

Appraisers work consists of investigating your home utilizing public records data.

This information public record has your home’s most recent sale price, the number of bedrooms and bathrooms, and a couple of other stats which an appraiser can use to come up with a range of estimated values on your home.

This method is known as an automated valuation model (AVM). The AVM is an “appraisal” without actually physically viewing your home; the on-site inspection will then be used to confirm what the appraiser has already found through public records.

If public record information is lacking some pertinent information, your home’s appraisal may leave out some major improvements made to the home.

To illustrate, if you’re taken out the old dust & bacteria filled carpeting and replaced it with Brazilian hardwood or ceramic tile floors, your appraiser wouldn’t not know that and would likely be missed.

A Common Situation is When the Appraiser Doesn’t Know the Local Area

Occasionally, a home is quite a distance away from the appraiser’s normal area, so an appraiser may drive 100 miles or more to conduct a appraisal.

When appraisers are unfamiliar with the neighborhood, the data from public record information tends to come into play more in determining value than the subject property’s features.

If you think that the appraiser doesn’t thoroughly know the neighborhood, this can be a good reason for an appeal.

When the Appraiser Commits a Mistake

Humans make mistakes, and appraisers are human. We all make an honest mistake. For that reason, it’s a good idea to look at your home appraisal and determine if there are any errors.

The errors on the report, if they occur, are likely to be wrong square footage and lot size; incorrect number of bedrooms and bathrooms; and, no mention of fireplaces, patios, or balconies.

Be prepared to show evidence of the mistake on the appeal.

If the appraiser or lender won’t fix the obvious mistake, then you take your business elsewhere where they will fix problems.

Starting your loan over may postpone the closing, but without a good appraisal, the closing may not ever happen.

Home Buying Checklist

When making a home purchase, a lot of excitement and planning can make you neglect significant issues after you move-in. It’s highly recommended that you error on being overly cautious than not. For most people, purchasing a home is the biggest financial choice they will make in their life.

Home Buying Points to Consider:

Location – Always a huge factor. Do you like the neighborhood and its surroundings? Do you think the home will sell for more than purchased it for ? Is the area in need of gentrification or is it currently desirable? Can it maintain its value ?
Neighbors – Are the neighbors friendly? Are they owners or renters? Is their landscaping nice or needs improvement? Bad neighbors can impact your property value, the wrong way. Proximity to neighbors; Some homes offer more distance from next door to another. Check the view from every window and walk the property to be sure.
Amenities – How far are things to do? Are there parks within walking distance or miles away? Large planned communities tend to have local shopping and parks within a couple of miles.
Schools – Are there good schools nearby? If so, it is good sign the neighborhood will retain its value or appreciate.
Utility Bills – Request a copy of the seller’s utility bill for the summer and winter from their agent or the seller. This will help you determine if it’s on par or much higher than you thought.
House positioning on lot – How much natural light a house gets is influenced by its lot position. This can affect the heating and cooling bills. A home that is south-facing usually receives the most natural light. However, a home that is north-oriented may be equally bright if the primary living space is in the home’s rear section and there are plenty of windows throughout. A north-facing home in a hot climate could be more effective if you want to keep your house cooler.
Foundation – In California, you cannot overlook this potential problem. Check for cracks in the walls as it can be a great indicator there are possible settling concerns. Floor cracks should also be carefully examined.
Roads – Is the home you are considering purchasing on a busy road? Roads that are very may require the city to expand it . You need to also assess if the roads are in good shape.
Street parking – Homes in the suburbs or rural areas usually don’t have street parking concerns, but some cities and planned communities in Orange County do have unusual rules, permits, and regulations regarding it. Some places will not allow you to park in front of our own house at night.
Inspection – Many older homes have something wrong during the inspection with cooling, electrical, heating, plumbing, roofing, etc. Even newer homes may not pass tests for Radon, mold, etc. Get a licensed home inspector to check and give you a quote for the cost of the repair.
Size of rooms. Make sure during your walk-through that the rooms are not too big or too small. Visualize your own furniture in the rooms or just measure it if you are able.
Days on market – How long has the home been available for sale and why so long? In most cases, there may not be anything wrong with a home because it has been for sale longer than others.