START AT THE BEGINNING, WHEN BUYING AN ESCONDIDO HOME…

What’s the first question you ask yourself when you’re ready to buy a home?  It should be, “How much can I afford?”  Without that crucial piece of information, you can’t even begin your search.  Figure your monthly income and debt payments, order your credit reports, and determine how much you can put down.

Now, apply for pre-approval from a number of lenders, to shop for the best interest rate and terms.  You can choose fixed or adjustable rate, and a conventional or government or jumbo loan, among the most common types of mortgages.

Now, what do you want out of your new home?  Want a location within the city, close to downtown, in the suburbs, or a rural setting?  How many bedrooms and bathrooms, in a single family home or townhouse or condo?

Now that you’ve figured out what you’re looking for and what you can afford, locate the neighborhoods that satisfy your requirements.  A local real estate professional that’s seasoned in the area, can help guide you. The best way to find your agent is through referrals.  And interview them before committing, to make sure you have the right “chemistry.”

 You can browse listings online, and your agent should be able to provide a list of suitable properties when you are ready.  He or she will schedule appointments to view homes and you can also attend open houses if available.  My upcoming column will guide you through some of the next steps.

Please feel free to contact me for your real estate questions or needs. 
There’s no cost obligation or pressure.  Let me EARN your business!

THE “PRICING” PUZZLE

If you need to sell your Escondido area home, but it’s lost value since you bought it, you’re facing a pricing puzzle. But before deciding on a fair price that may be below what you really want, consider the costs of not selling by asking too much.

If your home sits on the market, waiting for a higher offer, you’ve got to figure in the costs of continuing your monthly mortgage payments, utilities, maintenance and insurance.

Compare the asking prices of similar homes to the actual sales prices, often determined more by the lenders than the buyers. If you’re asking more than your home’s current real value, the required appraisal will show that, and the lender won’t approve the buyer’s loan, leaving you back at Square One.

Walk in the buyer’s shoes and do your homework. Tour similar homes listed in your area (we will be glad to assist with this). Compare their price per square foot and see how yours stacks up against the competition in terms of value. This should help you arrive at a realistic and aggressive asking price that will hopefully be your sale price!

The amount of local inventory determines your price, too. The more homes that are on the market For Sale in your area, the more competition there is for yours.

There are several factors that must be considered before establishing a realistic value. Starting with an accurate value (in the current market especially) is as important as what is done for marketing the property, when it comes to a successful house sale.

BOTH SIDES HAVE BENEFITS

There are new rules regarding short sales meant to improve the experience for both sellers and buyers, but the legalities and legwork can overwhelm even the most savvy.  Of course, that’s where the real estate agent shines, handling the paperwork and the phone calls, leaving you to focus on your move.

Keep in mind that if you’re expecting to buy an Escondido area home on a short sale, you can get a great deal, but don’t expect miracles from a bank that has agreed to accept a price lower than what the sellers owe on their mortgage.  These short sales often generate multiple offers, and though short sales can often be purchased at a below market price, don’t expect to waltz in with an offer $125,000 on a property with a current market value of $200,000.

The real advantage of a short sale transaction is that the home will likely be in much better physical condition than its foreclosure counterpart.  Often, a foreclosed home will have been abandoned for months, and perhaps trashed before being vacated. A short sale property in better condition is in and of itself a benefit with real value that offsets any lower price you could offer on a foreclosure.

And for sellers, a short sale preserves your dignity, reduces some of the stress, and won’t damage your credit history as much as a foreclosure.  Whether selling or buying, consult a competent Realtor for the best results.

FOR MORE INFORMATION REGARDING BUYING OR SELLING ESCONDIDO REAL ESTATE GO TO www.AnthonyRealEstate.net. OVER 30 YEARS LOCAL REAL ESTATE EXPERIENCE!

A Great Home!

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Thank you.

 

HOUSE VALUE VS. LOT VALUE

What is the proper relationship between the cost of a lot and the value of the house on it? This question concerned building economists more in the past than it does now. Old rules of thumb have lost much of their meaning. It used to be said that land should represent about one-sixth of the home’s price. Then it moved up to one-fifth and is now approaching one-fourth. It will change again as the cost of land continued to rise.

Nevertheless, the land value versus house value ratio cannot be totally dismissed because it does, to some extent, affect the resale value of property. The resale value determines the ease or difficulty you’ll encounter in securing a mortgage. In this light, it may not make a great deal of difference if you put an inexpensive house on an expensive lot, but it could be a mistake to have too much house for the land.

FOR MORE INFORMATION REGARDING BUYING OR SELLING ESCONDIDO REAL ESTATE GO TO www.AnthonyRealEstate.net. OVER 30 YEARS LOCAL REAL ESTATE EXPERIENCE!