When someone decides it is time to sell their home, they interview several Realtors® from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.
However, when someone decides to buy a home, they usually end up with their Realtor® through sheer accident. Why don't home buyers search for a Realtor® the same way that home sellers do?
Instead, homebuyers usually end up with a Realtor® as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.
So...
...does it really make a difference?
Listing Agents and Selling Agents
You see, there are two "sides" to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller's side is represented by the listing agent. The buyer's side is represented by the selling agent (also known as the buyer's agent).
Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.
So what should you do?
We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.
After all, buying your next house is probably the biggest purchase you've ever made in your life. Does it make more sense to find your agent by accident...or by design?
You can find me by Design. I'm Thomas J. Farris of theSDRealtor.com, Let me help you with any of your real estate needs. thomasjfarris@gmail.com
Saturday, July 31, 2010
Friday, July 30, 2010
Record Lows Continue For Mortgage Rates
Record Lows Continue for Mortgage Rates
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
Thursday, July 29, 2010
Home Affordability the Best In Decades
There is mounting evidence that the residential real estate prices are picking up momentum, even though naysayers continue to suggest another sharp drop is just around the corner.
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Wednesday, July 28, 2010
CalHFA loans???
In order to qualify for a CalHFA loan, certain requirements must be met. They are:
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
Monday, July 26, 2010
Mr. Mojo Risin is Selling
The house that Doors frontman Jim Morrison once lived in with longtime love Pamela Courson is being sold for $1.19 million. On Laurel Canyon, the house was the original inspiration for the song "Love Street" and comes complete with custom-designed furniture, outdoor patios and fire pits, and an outdoor shower - perfect for entertaining all your closest hippy-rocker friends. There's another shower of note in this house: the famed "secret shower" where Jim wrote lyrics and poetry on the bathroom walls.
Saturday, July 24, 2010
San Diego Foreclosures Lowest in Three Years
San Diego County had fewer mortgage defaults and foreclosures in the second quarter than it has had in the past three years, according to a report released today by MDA DataQuick, a real-estate research firm based in La Jolla.
Countywide, 5,458 homes went into default during the second quarter, a 45 percent drop from the total of 9,866 during the same period of last year. That’s the lowest number since the second quarter of 2007, just as the county was slipping into recession.
Foreclosures dropped 6 percent from 3,518 in the second quarter of 2009 to 3,315.
The same trend is showing up throughout California, with the number of defaults dropping for five consecutive months, resulting in a 44 percent year-to-year drop. Foreclosures, however, rose by 4 percent, driven partly by jumps in relatively pricy neighborhoods in Orange County, San Mateo , Marin, Los Angeles, Santa Barbara and San Francisco counties.
John Walsh, DataQuick’s president, said there were several reasons for the decline in defaults, including “motivated sellers and accommodating lenders” who have been doing more short sales; public policy, including tax incentives for homebuyers; and a rise in prices over the past year.
Walsh said that if prices continue to rise, “fewer homeowners will find themselves under water, which is a significant factor in letting a home go.”
Out of the 85 ZIP codes in the county, only two had a rise in defaults: Coronado and Del Mar. Two others had the same number this year as last year: Borrego Springs and the area around Rancho Santa Fe’s post office. Except for Borrego Springs, those neighborhoods are among the priciest in the county, with median home prices above $1 million.
DataQuick noted that statewide, mortgage defaults spread from lower-cost markets into more expensive neighborhoods, although that trend appears to be leveling off.
Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com
Countywide, 5,458 homes went into default during the second quarter, a 45 percent drop from the total of 9,866 during the same period of last year. That’s the lowest number since the second quarter of 2007, just as the county was slipping into recession.
Foreclosures dropped 6 percent from 3,518 in the second quarter of 2009 to 3,315.
The same trend is showing up throughout California, with the number of defaults dropping for five consecutive months, resulting in a 44 percent year-to-year drop. Foreclosures, however, rose by 4 percent, driven partly by jumps in relatively pricy neighborhoods in Orange County, San Mateo , Marin, Los Angeles, Santa Barbara and San Francisco counties.
John Walsh, DataQuick’s president, said there were several reasons for the decline in defaults, including “motivated sellers and accommodating lenders” who have been doing more short sales; public policy, including tax incentives for homebuyers; and a rise in prices over the past year.
Walsh said that if prices continue to rise, “fewer homeowners will find themselves under water, which is a significant factor in letting a home go.”
Out of the 85 ZIP codes in the county, only two had a rise in defaults: Coronado and Del Mar. Two others had the same number this year as last year: Borrego Springs and the area around Rancho Santa Fe’s post office. Except for Borrego Springs, those neighborhoods are among the priciest in the county, with median home prices above $1 million.
DataQuick noted that statewide, mortgage defaults spread from lower-cost markets into more expensive neighborhoods, although that trend appears to be leveling off.
Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com
Thursday, July 22, 2010
Wall Street Reform Encourages Safe Loans
The new financial overhaul law that President Obama signed into law is still being dissected, but some regulations that affect homebuying and mortgages have already been defined. Here are the key tenets:
• Lenders must prove that borrowers can afford their mortgages. Government guarantees will be voided if lenders don’t demonstrate that they have thoroughly investigated a borrowers’ ability to pay.
• Banks and other entities that pool mortgages and sell them to investors must keep at least 5 percent of the investments on their own books – an incentive to avoid poor quality loans.
• Low-risk mortgages, mostly 30-year fixed-rate loans, are exempt from many regulations. That should encourage lenders to put homebuyers into “plain vanilla” mortgages.
• Bonuses for brokers based on the cost of a mortgage are banned.
Source: Associated Press, Daniel Wagner (07/21/2010)
• Lenders must prove that borrowers can afford their mortgages. Government guarantees will be voided if lenders don’t demonstrate that they have thoroughly investigated a borrowers’ ability to pay.
• Banks and other entities that pool mortgages and sell them to investors must keep at least 5 percent of the investments on their own books – an incentive to avoid poor quality loans.
• Low-risk mortgages, mostly 30-year fixed-rate loans, are exempt from many regulations. That should encourage lenders to put homebuyers into “plain vanilla” mortgages.
• Bonuses for brokers based on the cost of a mortgage are banned.
Source: Associated Press, Daniel Wagner (07/21/2010)
Wednesday, July 21, 2010
Mortgage Applications Rise as Rates Stay Low
Applications to purchase homes rose 3.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.
This is only the second time in 10 weeks that purchase mortgage applications have increased.
“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.
Mortgage rates remained low:
• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.
Source: Mortgage Bankers Association (07/21/2010)
On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.
This is only the second time in 10 weeks that purchase mortgage applications have increased.
“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.
Mortgage rates remained low:
• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.
Source: Mortgage Bankers Association (07/21/2010)
Tuesday, July 20, 2010
Pregnant Women Have Trouble Getting Mortgages
Some lenders are balking at approving loans when a new parent has temporary lost income because she is home taking care of the baby.
Even if a parent expects to be back at work in weeks, banks still may deny the mortgage. “If you are not back at work, it’s a huge problem,” says Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. “
Lenders will not consider disability payments as income because they don’t last for three years.
A spokesperson for Fannie Mae said that a borrower on maternity or paternity leave could qualify for a mortgage by providing a letter from a doctor with the approved return-to-work date and a letter from the employer confirming the acceptability of the return date.
But mortgage brokers and practitioners say lenders aren’t interpreting the guidelines that way. “There is no real assurance that the new mom will come back to work after she has the baby,” says Marc Savitt, president of the Mortgage Center, a brokerage in Martinsburg, W.Va. “It’s just prudent underwriting to go ahead and approve the loan, but she has to be back before closing.”
Source: The New York Times, Tara Siegel Bernard (07/19/2010)
Even if a parent expects to be back at work in weeks, banks still may deny the mortgage. “If you are not back at work, it’s a huge problem,” says Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. “
Lenders will not consider disability payments as income because they don’t last for three years.
A spokesperson for Fannie Mae said that a borrower on maternity or paternity leave could qualify for a mortgage by providing a letter from a doctor with the approved return-to-work date and a letter from the employer confirming the acceptability of the return date.
But mortgage brokers and practitioners say lenders aren’t interpreting the guidelines that way. “There is no real assurance that the new mom will come back to work after she has the baby,” says Marc Savitt, president of the Mortgage Center, a brokerage in Martinsburg, W.Va. “It’s just prudent underwriting to go ahead and approve the loan, but she has to be back before closing.”
Source: The New York Times, Tara Siegel Bernard (07/19/2010)
Monday, July 19, 2010
Buyers Should Shop For The Best Rate
Anyone shopping for a new mortgage these days should shop around, says Cameron Findlay, chief economist for LendingTree.
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
Sunday, July 18, 2010
California Home Sales Rise In June
California Home Sales Rise in June
Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.
Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.
"The next few months should be very interesting," DataQuick President John Walsh says. "We're about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we'll see have a better sense of just how much."
Source: Associated Press (07/15/2010)
Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.
Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.
"The next few months should be very interesting," DataQuick President John Walsh says. "We're about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we'll see have a better sense of just how much."
Source: Associated Press (07/15/2010)
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