Category Archives: Real Estate

Advice for First-Time Home Buyers from a Real Estate Agent

Posted on May 20, 2013 | Leave a comment

As a real estate agent, there is nothing more gratifying than helping a first-time home buyer. It can be both an exciting and an overwhelming process. In the Bay Area’s highly competitive environment, the greater the preparation early in the process, the better the chances will be of securing that first home.

Even before identifying a property, understand how much money you can borrow and more importantly, how much you can afford. Often, these may be two different things. Select a local lender to help you evaluate your options. The lender will check your credit scores, employment history and other financial information to determine the actual loan amount you will qualify for.

Know the appraised value of the property before you make an offer. Contact the appraisers at www.scappraisals.com for your value questions.

Once through the process, your lender can prepare a preapproval letter that will be needed to accompany any offers. Additionally, at the risk of stating the obvious, don’t forget that you will need liquid funds to enter into a contract on a home. Be prepared to write a check for the earnest money deposit (generally 3 percent of the purchase price) and for home inspections.

It is surprising how often buyers overlook the need for liquidity and wind up scrambling to sell stocks or wire funds into their bank account at the last minute.

Select a real estate agent to help you identify properties that meet your criteria. Although most home buyers begin their search online, a knowledgeable Realtor will be able to suggest the various neighborhoods that meet your needs and help you focus your property visits. An agent will also be able to help you understand the “list” price range you should be considering. This is particularly important in a market where properties are often selling well above the asking price.

Getting an offer accepted may take several tries and will undoubtedly be a process of negotiation and compromise.

Disclaimer: for information and entertainment purposes only

Protecting Against Structural Calamities

Posted on May 17, 2013 | Leave a comment

New homes may be new, but they are rarely perfect.

Houses are giant puzzles with hundreds of parts, all manufactured at different locations and carried to the building site. And try as they might to put together a flawless product, builders and their numerous subcontractors don’t always get things right.

Luckily, buyers are more likely to have to deal with cosmetic defects than out-and-out structural failures. Scratched refrigerators, broken bathroom tiles and faulty electrical outlets are far more prevalent than badly cracked foundations or sagging roofs.

Is there value in a home with a cracked foundation or structural issues? Contact the appraisers at www.scappraisals.com for your value questions.

But structural defects do occur. According to recently released data from 2-10 Home Buyers Warranty, owners of new homes are as likely to experience major structural damage — big cracks in the walls, windows and doors jammed shut, buckled floors — as they are a major fire.

This isn’t to warn buyers off new construction. Previous research has found that just one in 20 houses will experience a major structural hit over its lifetime. But one in every four will experience “some” structural distress.

Based on his review of more than 10,000 structural claims over a 32-year period, Walt Keaveny, chief risk manager of the Denver-based warranty company, says structural problems can occur from day one. But most claims are reported between four and seven years after initial occupancy.

Signs of a New Housing Bubble

Posted on May 15, 2013 | Leave a comment

Um, don’t look now, but out there in the real estate trenches, they’re whispering the B word again. That’s B as in “bubble.”

That’s because agents in various parts of the country are using such terms as “overheated” and “buying craze” and “skyrocketing prices” to describe what they’re seeing in their markets, according to a recent trade journal report.

Is the value in your home in the “bubble?” Contact the appraisers at www.scappraisals.com for your value questions.

It isn’t an isolated discussion: Redfin, a real estate brokerage that does business in 20 markets around the country, recently ranked 15 major metros it perceived as most vulnerable, and least vulnerable, to experiencing another housing bubble.

Redfin Chief Executive Glenn Kelman said he doesn’t see housing, as a whole, headed for another fall. But in an edited interview, he explained that although he’s advising clients in some places that now might be the perfect time to dive into buying, in others, he’s suggesting that renting might be a safer move.