First comes Playing the Field. This is where you check out various cities, tour open homes or new home developments. But it feels a little empty, and shallow.
Double dating, that’s the ticket. You pair up with a real estate agent and a lender – It’s safer that way. You go out a lot and you have fun. It seems you are narrowing your focus to a select group now. Things are taking a serious turn. (more…)
In this example, let’s consider a detached 3 bedroom, 2 bath, 1500 sq. ft. home, with a lot size less than 10,000. The average monthly rent for homes of this size (based on the past 120 days) is $2265. Depending upon the neighborhood, that same home size might rent for $2500 or more.
The average price to purchase a house of that size is $363,000. Using the example of 20% down, what does that look like in terms of a monthly morgtage?
72600 20% down payment
290400 conventional loan amount
$1743.69 monthly mortgage amount (includes principal, interest and taxes) based on 3.875%*. So, less than your rent would be. (*Based on 30 year fixed rate as of 2/9/12, .05% insurance and 1.25% for taxes) (more…)
Livermore CA Market Update |Single Family Homes – 2011
The Livermore residential real estate market for 2011 doesn’t show any drastic swings over the previous year, but there are some trends to note. Those ingreen are an improvement over 2010; those in red are not as positive.
The good news though is current active Livermore listings show 40% distressed properties (bank-owned and short sales) which is quite a bit lower than in Alameda county as a whole (53%). Interesting to note though – 50% of all units sold in 2011 were distressed properties, illustrating that buyers are not shying away from these purchases, but rather seeking them out for their perceived value.
You probably started out your home search with a very specific list of what you wanted, how much you were willing to pay, and where you wanted to live. Your budget it the largest factor in determining if all of those factors line up.
So far I haven’t met anyone who didn’t want the perfect house, in the best location and please, pretty please can it be in our budget? Those with endless financial power may win on all accounts. But for most people, there is a price limit and ‘perfect’ usually comes at too high a price. (more…)
Buying a home in today’s market can be a bit scary – at least at the surface. Almost everyone knows someone who has been left in a precarious position due to a housing purchase. Maybe even you or your parents!
Do you know what group is buying property? Investors! So what do they know, that the rest of us don’t?
Investors who purchase real estate typically look at it as a buy and hold investment, an important part of their portfolio. They look at it historically. The craziness of the early 2000s prompted people to buy high and sell quickly – and at that time it was for a tidy profit.
But traditionally, people bought real estate for other reasons:
So far I’ve never met anyone who does. But do they? Of course. The days of bidding wars aren’t that far behind us. In a multiple offer situation, it’s not typical for the winning bid to be lower than the others.
But due to the media hype about it being a buyer’s market, I find that many potential buyers have expectations that differ from what they’re apt to experience in our local Livermore and Tri Valley real estate market. Here are the biggest disconnects: (more…)
This is certainly a comment many buyers are making. Could that happen? Sure it could; anything is possible. But what else could happen – could interest rates go up? Of course that is possible too. Let’s look at some real scenarios to see how the numbers play out. For purpose of this example, conventional financing with 20% down-payment is used.
Price of Home Now Current Interest Rate Monthly Payment
$350,000 4.125% 1721.60
Price Later Higher Interest Rate Monthly Payment
$330,000 4.225% 1638.61
The chart for attached home sales does not at all follow those of detached. December showed the most activity. When you see the composition of sales types (REOs, short sales and regular sales), it seems as if there was a push to get some of these non-performing assets off the books. This has also been a popular property type for investors. Rents have increased, so some properties are cash-flowing right from the start.
The number of REO’s sold (bank owned properties) was fairly consistent quarter to quarter. Short sales were more plentiful than bank owned properties for both the first and last quarters.
Looking at the numbers by quarter shows a fairly consistent sale pattern, with a jump at the end of the year.
There are good arguments on both sides. A lot of buyers I work with have very strong opinions, one way or another. And for some, they haven’t given it much thought. Of course there are differences between older homes and newer one. What will matter most to you? This two-part series addresses some of the pros and cons before you start house-hunting.
Older Homes: The Potential Pluses
Location: these are often times built in the more central parts of a city, offering good walking-shopping options.
Character: older homes, especially those with historical attributes have some intrinsically charming and unique qualities.
Landscaping: more often than not, these homes will have mature trees and landscaping providing shade and privacy, as well as curb and comfort appeal. (more…)