Woodland Hills Ca. Real Estate – Are You Buying A House or a Home

Are You Buying a House or a Home?

As you prepare yourself to buy a house by reading and asking questions, and studying about buying real estate, you will often find the words “house” and “home” used interchangeably. There is a huge difference between a house and a home.

A house can be a place to eat, sleep, park your car, and put all your “stuff” (including other family members). It is a material possession and an investment. A home is where you feel comfortable, warm, safe, and protected.

A home is where you live.

A house is something you buy logically. A home is an emotional purchase. When buying real estate you have to balance your emotional wants and your logical needs because there will almost certainly be a time when the two conflict.

 

For example, you may want a house with a view, but the payment is higher than you feel comfortable with on a thirty-year fixed rate mortgage.

What do you do?

Purchase the house anyway and budget more carefully for the next few years? Buy the same house without the view and get it cheaper? Make a larger down payment by borrowing from your 401K or family members, so you get a lower payment? Get an interest only mortgage with a smaller payment instead of a fixed rate loan? Or buy a smaller house and still get the view?

When viewing the house, most people look at it emotionally and envision it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in, instead. That’s when “buyer’s remorse” may come up, but…that’s a different article.

Balancing Act

The trick in buying real estate is to view all decisions with both a logical perspective and an emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.

You will find yourself owning a warm, happy, safe home – and an investment for the future at a price you are willing to pay.

 

Woodland Hills – California Real Estate

The market in its current state provides us with another way of investing – Lease Option.

The world of Woodland Hills Ca real estate investing is filled with mechanisms investors use to get into properties and turn a profit. As a new real estate investor, that abundance of information can often seem insurmountable. Financing options alone on a real estate investment could take days to fully understand.

Nestled somewhere in that great array of information is the lease option, a mechanism used by some investors to get into a property quickly and with no down payment to speak of. It is a flexible solution to some investing issues and can provide a win-win situation for buyer and seller.

The basic form of a lease option dictates that a buyer and seller agree on a payment plan for a particular piece of real estate that includes the option to buy the property at some point in the future with a particular selling point. Should the buyer ultimately decide against purchasing the property, no harm is done and the agreement is simply terminated. However, if the buyer does decide to purchase the real estate, the seller is obligated to sell for the price and terms agreed to at the onset of the contract.

While this type of deal is not for every investor or every property, there are certainly some benefits. These agreements are often rapidly worked out, giving the buyer control of the Woodland Hills Ca real estate investment property and the seller a monthly payment in short order. The buyer remains flexible in the investment, having the ability to decide later not to purchase the property and the seller benefits from that flexibility by keeping the monthly payments and perhaps keeping the whole property in the end.

The buyer benefits by escaping any sort of down payment to get into an investment property, only having to come up with the monthly payment. If the property is managed correctly, that monthly payment will come directly from the revenue seen by the property.

One of the most common ways this method is used is for investment properties that could use some renovation to ultimately command a better sale price. A buyer will enter into a lease option agreement, work on the home to improve its value and then pursue a separate buyer that will pay more than the cost of the lease option. With such an arrangement,  a Woodland Hills Ca real estate investor can turn a profit on a home he or she was never even the legal owner of.

Of course, there are some pieces of information to consider when deciding whether a lease option is right for your investing needs. The most important piece of advice when dealing with a lease option is to take special care when drafting the contract as it will largely determine whether your investment succeeds or fails.

Every lease option agreement will include a monthly payment amount, an option fee which will be add toward the down payment amount for the purchase of the home, that amount is in addition to the lease amount.

 

 

Woodland Hills Ca. Home Buyig Guide

Now is the perfect time to buy a home, its like the perfect storm, all is right: the interest rate are low, so are the prices of homes.

Ready to buy? here is some information you will need to get started:

Buying a home involves more out-of-pocket than just the down payment. There are also closing costs to pay for items such as title policies, recording fees, inspections, courier charges, reserves to set up an impound account and fees that a lender charges. It is the fees a lender charges to make a loan that typically cost the most.

Closing costs are on top of the purchase price.

How Much Are Closing Costs?

As a rule of thumb, closing costs to buy a home run about 2 to 4 percent of the purchase price. Much depends on the points and origination fees a lender charges to make the loan, which are disclosed on the buyer’s Good Faith Estimate.

The total closing costs to purchase a $400,00 home could cost anywhere from approximately $8,000 to $16,000 or more.

Non-Recurring Closing Costs

Fees that are paid once and never again are called non-recurring.

    * Title Policies

    * Escrow or closing

    * Notary

    * Wire fees

    * Courier / Delivery

    * Endorsements

    * Recording

    * State, County or City Transfer Taxes

    * Home Inspection

    * Lender fees paid in conjunction with the loan on the HUD-1, line 800.

Recurring Closings Costs – The Prepaids

Recurring fees are those charges that you will pay again and again. They include such fees as:

    * Fire Insurance Premium

    * Flood Insurance (if required in your area)

    * Property Taxes

    * Mutual or Private Mortgage Insurance Premiums

    * Prepaid Interest

The time of the year that you close will dictate how many prorate months of premiums the lender will collect to hold against future payments of taxes and insurance. Not every loan has an impound or escrow account, but typically loans totaling more than 80% of your purchase price will require an impound / escrow account.

Can a Seller Credit the Buyer for Closing Costs?

Always check with your lender before you negotiate an offer that involves a seller credit because the lender might not allow it.

Woodland Hills Real Estate Got A Gift This Week…

Woodland Hills Ca.– The Federal Reserve this week took swift and decisive action to send a clear message to the stock market while also giving a gift to Home Buyers because it slashed interest rates by 75 basis points from 4.25% to 3.5%. This is the biggest cut in over 24 years and should help our Woodland Hills Ca market along with the Los Angeles mortgage industry.

It’s a Great time to buy Real Estate in Woodland Hills

The good news is that  the market reacted positively to this news. So for all those Woodland Hills home buyers trying to decide if now is a good time to buy, I would say, “YES” since we have low rates and there are still a large number of motivated sellers which makes it a great time to get of the fence and lock in. a great interest rate.

Today, we had a home buyer close on their loan and get into their new house and they were able to buy this home because of the down-payment assistance and the seller paid closing costs.

Our Woodland Hills home buyer actually ended up with a 30 year home loan with a 5.75% fixed interest rate; sellers are willing to pay buyers closing costs as an incentive to the buyer to purchase the home.

It’s the result of having dedicated agent like me negotiating for the home buyer and also the fact that there are sellers who want to get out from under the monthly cost of ownership.

In this particular case the home seller had completely remodeled this house and did    not make money on this home and after putting in hundreds of hours of work he realized he had actually spent more money on repairs and renovation than he netted at the close of escrow. 

I really felt for him, we’ve known other home sellers in the same situation and it’s a bummer however, it was an incredible gift and fresh start for the family who bought his home.  

So if you’d like to learn and thinking about buying a home and want more info about getting pre-qualified for mortgages and Home Loans – call us or email us and we can recommend proven local Lenders.

Reasons to Buy a Home in Woodland Hills Ca. – for First Time Home Buyers

If you’re like most first-time home buyers in Woodland Hills Ca, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are good reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Here are some of the loan programs available to you in California:

CalHFA  - With their partner lenders offer 100- percent loans for 30-40 year fixed mortgages at below- market interest rates. A fixed 35 – year, interest – only for the first 5 years and is insured and guaranteed by the FHA, or USDA.

CalHFA – also offers down-payment/closing cost assistance program in conjunction with local government agencies and housing authorities.

CHAP – offers differed payment junior loans on up to 3 percent of the purchase price or appraised value.

CalHFA – also has special programs for teachers, administrators and school staff in     below – market rates.

 California Vets  -  There are  three different programs available to vets.

 Hi Tech – employees can find different loans at Technology Credit Unions, which are not suffering the credit squeeze because it avoided sub prime borrowers.

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Real Estate Investor – Find The Right Way To Invest

 The best possible scenario for a Woodland Hills Ca real estate investor is to find a home that is undervalued to be able to then turn around and sell it for a profit. Obviously, this can be a difficult prospect as real estate markets becoming increasingly clogged with willing investors, but what happens we you do find a possible target? How do you evaluate its viability? The real answer: keep your cool.

Finding a target may seem like the most difficult part of the investing process, but gathering a variety of potential real estate possibilities will help you develop a more discerning Woodland Hills real estate investing eye. Turning up undervalued prospect is an exercise in targeting sellers that have a motivation to sell quickly.

That motivation could come from a recent divorce, a fresh relocation or some financial difficulties. These situations are often emotional and if you get too wrapped up in the story behind each sale, you might be more prone to simply say yes to every opportunity instead of evaluating each investment properly. Here are some tips:

Develop Guidelines
Before you ever go on a search for potential investment properties, write down the kind of profit margin you would require to get involved in a real estate deal. You will want to build in cushion for cost overruns and market fluctuations, of course, but many investors forget to compensate themselves properly for time.

By setting up your guidelines with time limits attached to them, you can avoid this problem. Getting involved in a Kennewick real estate property that will eat up six months of your time and return a profit of $5,000 is obviously not worth the trouble. However, not every situation will be as clear as that, so developing a plan on the term of your investment and the profit level you want to target will help you more efficiently go through potential properties, undervalued or not.

Don’t Be Over-Eager
Keep many irons in the fire but only pull one out when the time comes. One of the pitfalls of finding an undervalued house is the tendency to forget about needed repairs or other work to get a home back on the market. You might be so excited to find a target after a long search, the story behind a seller’s motivation might prompt you to say yes before going through the math on the investment.

If you have developed guidelines, now is the time to use them. Don’t wait until late in the transaction when a Kennewick real estate seller is putting pressure on you to move to sit back and think about the investment. You are more likely to make a rash decision or submit to a seller’s negotiating point that you would not have otherwise. Just because a home is undervalued doesn’t mean the seller is resigned to getting the short end of a deal.

Don’t Be Fooled By Volume
While volume might be a valued statistic in the retail industry, real estate investors should avoid counting investments instead of counting profits. Just because you’ve found a handful of undervalued homes does not mean that you need to get involved with each one no matter how small the profit.

In real estate investing, you do not make up your profits through volume. Instead, strong real estate investors will spend time on the properties that will net them the biggest return and focusing on that one strong prospect instead of 10 inferior ones will help you develop that investing skill.

While it is exciting to find an undervalued home that you might think has the potential to be a solid real estate investment, don’t get carried away by that excitement and forget to evaluate the deal properly. Do your math to make sure that the time you put into a property will be rewarded, no matter what the selling price might be. You will be a better Woodland Hills Ca real estate investor over the long term if you do.

Financial Markets – Housing Market

As with all financial markets, the housing market in Woodland Hills Ca is going through a natural cycle that will level out the steady climb that has been going on for years and years.

Were it has been a sellers market for a number of years, it is now swaying back towards a buyers market.
Thanks to media momentum the housing market has taken a pretty good blow nation wide. In a buyers’ market there is a surplus in housing inventory.

With a greater number of homes on the market and bargaining power in your hands, you are faced with numerous choices and the temptation to negotiate on just about everything.

. For you as a buyer, knowing that market change is inevitable as well as which market your area is currently experiencing will give you an informed advantage as you make decisions about buying real estate.

Obtaining general knowledge about the home-buying process and the real estate market is a relatively easy task, but buyers who feel a competitive edge tend to leap before they look. Part of your homework should include learning the boundaries of your buyers’ market. In a buyers’ market, buyers who don’t educate themselves about prices and markets tend to low-ball sellers and ask for too many concessions. Even in a buyers’ market, that will only alienate the seller, especially those less motivated with top-value homes.

Paying sellers’ market prices in a buyers’ market is a common mistake buyers make, especially at the onset of a buyers’ market. The cheapest home in a neighborhood, community or region in transition will give you the greatest return on your investment, especially when the market rebounds. Buy because you need a home, not because it’s a buyers’ market. The buyers market is good when there is a lot of inventory on the scene like the market today.

I know this market well, and will help you to make the decisions, regarding the right area and the right price.

Call me. It’s a great time to buy, interest rate are low and so are the home prices, whether you a first home buyer or a move up buyer I have different loan programs that are tailored for you. Los Angeles County, the city of Los Angeles and the state of California have money for you. Pick up the phone and call me right now at 818-288-7255

Woodland Hills Ca. neighberhood

In the the area of Woodland Hills Ca. that begins with Shoup st. at the east and starches all the way to Valley Circle in the west, are homes that their style and architecture are: Mid-Century modern, Mid-Century modern is an architectural, interior and product design form that generally describes post-war developments in modern design from roughly 1945 to 1965. Mid-century architecture was a further development of Frank Lloyd Wright’s principles of organic architecture combined with many elements reflected in the International and Bauhaus movements. Mid-century modernism, however, was much more organic in form and less formal than the International Style. Scandinavian designers and architects were very influential at this time, with a style characterized by simplicity, democratic design and natural shapes. Like many of Wright’s designs, Mid-Century architecture was frequently employed in residential structures with the goal of bringing modernism into America’s post-war suburbs. This style emphasized creating structures with ample windows and open floor-plans with the intention of opening up interior spaces and bringing the outdoors in. Many Mid-century homes utilized then groundbreaking post and beam architectural design that eliminated bulky support walls in favor of walls seemingly made of glass. Function was as important as form in Mid-Century designs with an emphasis placed specifically on targeting the needs of the average American family. Examples of residential Mid-Century modern architecture are frequently referred to as the California Ranch style. I live in one of these homes, in Woodland Hills Ca. The open floor plan is right in line with all the new custom homes that have what we call today “great rooms”. There are a few listing in the area, call me and I will show them to you.

Facts About Real Estate:10 Things To Know Before You Buy

Market conditions are right for home buyers. Ready to take the plunge? here are 10 things to consider before buying:

1. Don’t buy if you can’t stay put.
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.

2. Start by sharing up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you’ll do better to use one of many calculators available on line to get a better handle on how your income, debts, and expenses affect what you can afford.

4. Don’t worry if you can’t put down the usual 20 percent.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.
In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say five to seven years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably a contractor with experience in doing home construction in the area where you are buying. His job will be to point out potential problems that could require costly repairs down the road.

Want help in finding the right home? pick up the phone right now and call me.

Woodland Hills Real Estate: Top Benefits of Having A Buyers Agent Represent You

Having a professional Buyer’s Agent represent you in your next home purchase is always a sound decision. Here, we will take a look at how California views a Buyer’s Agent, and then we will discuss the Top 5 Benefits of having a Buyer’s Agent.
“A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer…”
“Broker shall exercise reasonable skill and care for the Buyer, including but not limited to the following:
1. Performing the terms of any written or oral agreement with Buyer;
2. Presenting all offers to and from Buyer in a timely manner regardless of weather Buyer is already a party to a contract to Purchase a Property;
3. Disclosing to Buyer adverse material facts actually known by Broker;
4. Advising Buyer regarding the transaction and to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Agent.
5. Accounting in a timely manner for all contingencies removale.
6. Keeping Buyer fully informed regarding the transaction.
Agent will not disclose the following information without the informed consent of the Buyer:
1. That Buyer is willing to pay more than the purchase price offered for the property;
2. What Buyer’s motivating factors are;
3. That Buyer will agree to financing terms other than  the one in the purchase agreement.                                                                                                                                                  4. Any material information about Buyer unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealings; or
5. Any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property.
In what is the largest investment most people will ever make, having a real estate professional on YOUR side is a very smart move. In case you needed even more incentive, here are the Top 5 Benefits of Having a Buyer’s Agent represent you in the purchase of your next home:
1. Full Representation- A Buyers’ Agent owes 100% of their dedication and loyalty to you, the home buyer. They have no reason or motivation to “sell” one house over another, and can thoroughly put YOUR interests above any sellers’ wants or needs. Furthermore, a Buyer’s Agent can help you find competent lenders, home inspectors, landscapers and anyone else that you, a future homeowner, may need, once you find a home that you want to buy.
2. No Loyalty to Home Sellers or Listing Agents- Because of the 100% loyalty to you, their Buyer Client, a Buyers Agent does not need to look out for the best interests of the Seller, whatsoever. Their job is to get YOU – the Home Buyer, into the best home for the least amount of money and hassle possible. The Sellers’ and the Listing Agents’ wants and needs have nothing to do with the level of service provided by a Buyers’ Agent to you, their Buyer Client.
If you were to come to a home, as an unrepresented buyer (no Buyers Agent) that is listed by another agent, the only duty that the listing agent has is to not lie to you. That is it. They owe nothing else to you. They are not on your side. When you arm your self with a Buyers Agent, you will have someone working hard for YOU at every point in the home buying process.
3. Great Knowledge of the Market- A Buyers agent knows “what is out there” better than anyone else. They spend much of their time looking at houses (both online and in person) and fully understand what is available and where all the good deals are. They are the ones setting appointments and viewing hundreds of homes every month. In many cases, a Buyer’s Agent has already seen a home that you may be interested in, and can share with you many details before you even go inside!
4. Access to ALL Available Properties- A Buyers Agent can show you ANY property that is available – regardless of the sign in the yard. They have access to every home that is for sale, the minute it becomes available, and have no loyalty to one listing agent or company over another. Also, in many cases they can effectively represent their buyer clients in the purchase of a home from an unrepresented seller (FSBO). A Professional Buyers Agent will leave no stone unturned when finding the perfect home for you, their Buyer Client.
5. Effective Negotiating Skills – A Buyers’ Agent is an effective negotiator, as one main part of their job is to write solid offers that get you, their Buyer Client in the best possible situation. They do this for a living and know all the tips and tricks to use and avoid when dealing with different listing agents and sellers. They completely understand all the details of a Buy-Sell Contract, and are able to explain and walk through the contract and any counter offers to you, their Buyer Client, in a way that makes sense. They will maintain the contract and all necessary dates, making sure that it all works out in YOUR BEST INTEREST.
What is the best part? In most cases, representation by a professional Buyers’ Agent will cost you nothing – It’s FREE! The compensation that they receive is built into the costs paid by the Seller at the time of closing. Wow!