5 Reasons To Sell Now

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now! Weather may not have affected our area, however the lack of inventory did! Buyers are still out there!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Should I Rent My Home Vs Selling My Home

There has been a lot written about how buying a home is less expensive than renting one in most parts of the country, especially Santa Clarita. Rents are skyrocketing and homes are still at great prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.

This logic makes sense in some cases. There is a strong belief that residential real estate is a great investment right now. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for.

Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

10 Questions to ask BEFORE renting your home

1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2. Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5. Will you allow pets? Cats? Dogs? How big a dog?
6. How will you actually collect the rent? By mail? In person?
7. Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up? Most importantly, how will you pay for these repairs?
8. Do you have a list of craftspeople readily available to handle these repairs?
9. How often will you do a physical inspection of the property?
10. Will you alert your current neighbors that you are renting the house?

Bottom Line

Again, renting out residential real estate is historically a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.

FREE E-WASTE SAT MAY 3RD & SUN MAY 4TH!

9 TO 4, Saturday and Sunday

Home Depot
20642 Golden Triangle
Santa Clarita, Ca 91351

What is E-Waste?
Any consumer electronics equipment that has reached its end of life or end of usage whether in full or non-working condition.  it includes most electronics or electric appliances with a cord or circuit board such as:

Computer monitors, TV sets, PC systems, printers, laptops, copiers, scanners, fax machines, toner cartridges, UPS & PDAs, power supplies, main frame units, networking equipment, mother board systems, cellular phones, VCR/VCD/DVD players, home entertainment systems, land line phones, small portable devices.  The will also accept car batteries and forklift batteries.  There is a $5.00 service fee for microwave ovens.  They do not accept refrigerators, washers/dryers, fluorescent light bulbs, and household batteries!

Heating and Cooling thermostats Recalled

More than one million thermostats sold in the United States and Canada since 2006 are being recalled because the batteries can leak and cause a fire.

Product: The thermostats are made by White-Rodgers, but some have different brand names printed on the front, including ComfortSentry, DICO, Emerson, Frigidaire, Maytag, Nutone, Partners Choice, Rheem, Ruud, Unico, Water Furnace, Westinghouse and Zonefirst. 

Hazard: The alkaline batteries used in the thermostat can leak onto the circuit board posing a fire hazard.

Remedy: Consumers should check thermostats for battery icon on the left side of the blue lighted screen, if the battery icon is not shown, contact White-Rodgers to receive a free repair or a replacement thermostat.


https://www.cpsc.gov/en/Recalls/2014/White-Rodgers-Recalls-Home-Heating-and-Cooling-Thermostats/

HOMEOWNERS EXEMPTIONS! ARE YOU USING THEM?

ARE YOU RECEIVING THE EXEMPTIONS AVAILABLE?

Did you know about Proposition 60/90, Proposition 8, or the Homeowners Exemption and how they can BENEFIT and SAVE YOU MONEY?  There may be many exemptions you aren't using! See below and I can help you get these started if you aren't using them! 

Homeowners’ Exemption

If you own a home and it is your principal place of residence on January 1, you may apply for an exemption of $7,000 from your assessed value. All new homeowners receive the exemption in the mail, but I have found about 50% of people never fill it out and return it! New property owners will automatically receive a Claim For Homeowners Property Tax Exemption. Homeowners’ Exemptions may also apply to a supplemental assessment if the prior owner did not claim the exemption. 

Market Value Decline–Proposition 8

This is a constitutional amendment that allows a temporary reduction in assessed value when a property incurs a decline in value.  A decline in value occurs when the current market value of a property is less than the current assessed value as of January 1.  In order to qualify for the reassessment, the property owner must demonstrate that on Jan 1, the market value of the property was less than the current assessed value.

RELIEF FOR SENIOR CITIZEN

Prop 60/90- basically these are constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment when a senior citizen sells his existing residence and purchases a replacement residence worth the same or less than the original property.  

Veterans' Exemption

If you are a single veteran with assets of less than $5,000, a married veteran with assets of less than $10,000, or an unmarried surviving spouse of an eligible veteran, you may apply for the Veterans’ Exemption of $4,000 applied to the assessed property value. Although it is unnecessary for the veteran to reside on that property in order to qualify, this exemption claim must be filed every year. 

Are You Prepared For A Home Inspection?

Your home is sold! Yippee!!! Now the buyer will be conducting a home inspection. Here are a few things you can do, if you haven't yet, to prepare for a solid home inspection.

1.  Clean out dirty gutters or debris from the roof.

2.  Trim trees, roots and bushes back from foundation, roof, siding and chimney.

3.  Seal asphalt driveways, if cracking.

4.  Clean or replace HVAC filter.

5.  Test all smoke detectors to ensure they are in safe working condition.

6.  Don’t do quick cheap repairs.  You may raise questions that will unfairly cause great concern to buyers and inspectors.

7.  Ensure that all doors and windows are in proper working condition, including repairing any cracks.

8.  Check and fix any leaks on plumbing fixtures.  Apply caulk if needed.

9.  Have clear access to attic, crawlspace, heating system, garage and other areas that will need to be inspected.

10.  Make sure all utilities are turned on if the house is vacant.  This includes water, electric, water heater, furnace, air conditioning and breaks in the main panel.

11.  Make sure you have installed a carbon monoxide detector.  

It’s important that your clients understand what they need to do and the issues they need to fix before getting their home inspected.  A pre-listing inspection is also recommended for potential sellers to identify items that they need to be aware of.  After all, surprises are never a good thing when it comes to home inspections and selling a house!

Want to Sell Your House? DON'T OVERPRICE IT!!!

The housing market is recovering nicely. Prices have increased nationally by double digits over the last twelve months. Competition from the shadow inventory of lower priced distressed properties (foreclosures and short sales) is diminishing rapidly. Now may be the perfect time to sell your home and move to the dream house or beautiful location your family has always talked about.

The one suggestion I would definitely offer: DON’T OVERPRICE IT!!

Even though prices have increased by more than 10% over the last year, the acceleration of appreciation has slowed dramatically over the last few months. As an example, in their April Home Price Index Report, CoreLogic revealed that home prices actually depreciated by .08% this month as compared to last month’s report. What concerns us is that Trulia just reported that asking prices are still continuing to increase.

Because investor purchases are declining and there are more listings coming onto the market, we believe that sellers should be very cautious when they price their house. The alternative might be that you could lose money by overpricing your home at the start as explained in a recent research study on the matter.

Bottom Line

Though it is a great time to sell your house, pricing it right is crucial. Base your home price on the comparables in your neighborhood