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Are You Ready To Graduate From Renting To Owning A Home?

June 14, 2018

With graduation season in full swing, many may be pondering a change in their living quarters. Some may be moving out of Mom and Dad’s house into dorms, or maybe out of dorms into their own apartments.
But what if you’re ready to take an even bigger step—moving out of a rental into a home you can call your own?

Buying a house, after all, is a great way to put down roots and build wealth (since homes tend to appreciate so you can sell later for a profit). But purchasing property isn’t a simple process, so you should make sure you’re prepared.

So, how do you know if you’re ready to move from an apartment to a house? Ask yourself these questions below to get a sense of where you’re at—or what you have to do to transition easily into home-buying mode once the time is right.

Can you afford to buy a home?
For starters, let’s talk money. Buying a home is a hefty purchase, probably the largest you’ll ever make. So, you’ll need a down payment (typically recommended to be 20% of the home’s purchase price) and steady income (i.e., a job) to pay your mortgage.

There are other costs also associated with homeownership:

Closing costs (typically 2% to 5% of the home’s purchase price)
Home insurance (cost varies by state)
Maintenance
Utilities
Budget for unseen repairs and emergencies
While renting might seem more economical than owning at first glance, that’s not always the case. You might be surprised by the results!

Another good first step to figuring out whether you can afford a house is to enter your salary and town of residence into a home affordability calculator, which will show you how much you’d pay for a mortgage on a typical house in that area. Or talk with a loan officer about whether you would qualify for a mortgage, and how much you can spend comfortably. Such consultations are free, and will give you a concrete dollars-and-cents sense of where you stand.

Are you settled in your job?
Your job situation is not only important in terms of income to buy a home, but also whether you’re happy where you work and plan to stay put. Because once you own a home, your career prospects do narrow somewhat, purely because a home anchors you to one area.

Do you know where you want to live?
Since moving once you own a home is not as easy as just packing your bags (which, let’s face it, is a hassle in itself), you really need to make sure you’re picking a home in an area where you’ll be happy.

When in doubt, try renting for a few months to make sure you like the area before you start shopping for a home to own for good.

How much home maintenance are you willing to tackle?
If you love the challenge of fixing a leaky faucet and figuring out which shrubs will flourish in your yard, homeownership may be right up your alley. But if the idea of mowing a lawn or messing with the HVAC makes you depressed, then you may want to stick with renting, which gives you a roof over your head without the work.

Living in a house you own is a different story. There’s no landlord to call if anything goes wrong; it’s all up to you. So you have to be either adept as a handyman, or willing to find and pay someone else to do such tasks. Or else consider buying a condo or co-op, where the lawns and public areas around your home are maintained by hired help.

Bottom line: Owning a home is a big commitment. So before you jump into it, you should have confidence that it works for your circumstances.

Consider me your #1 resource for all things Real Estate! Are you thinking of buying your first home? Do you know someone who is ready to graduate from renting to homeownership? Just send me an email or call 619-888-2117 – I can help.

 

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8 Real Estate Documents to Keep – And What Happens If You Don’t

June 7, 2018

 

Which real estate documents should you keep after buying a home? After all, you don’t want to have to file all of it if you don’t have to; but you also don’t want to chuck something crucial.Your closing company is required by law to keep a record of your closing documents, so that’s a good fallback in case you misplace yours. Still, it’s smart for you to keep important documents on hand—particularly if, later on, you need to file a claim against the seller or your professional representation team (i.e., your real estate agent, home inspector, or mortgage lender). Hopefully, that doesn’t happen, but it’s wise to be prepared.

So, of the hundreds of documents you’ll encounter during the home-buying process, here are the ones you should keep—and why.

1. Buyer’s agent agreement
When you choose a real estate agent, you sign a buyer’s agent agreement—a contract between you and the brokerage, stating that the agent represents you in the purchase of your home.

This agreement outlines the terms of the relationship with your agent—including who pays the agent’s commission (in most cases, the seller), the length of the agreement (90 to 120 days is standard in most markets), and the terms for terminating the agreement.

Why you should keep it: This contract spells out what services your agent agreed to provide you with—and it can come into play if you have an issue with your agent after the transaction closes.

2. Purchase agreement
Every home sale starts with a real estate purchase agreement—a legally binding contract signed by home buyers and sellers that confirms that they agree upon a certain purchase price, closing date, and other terms.

Why you should keep it: The provisions stated in this contract must be followed to the letter. If you or the seller fails to fulfill these duties, there could be legal ramifications.

3. Addenda, amendments, or riders
These types of documents alter or amend the terms of your purchase contract. For example, if a survey reveals that there’s an encroaching fence built by a neighbor, and you’d like the fence removed, the sales contract has to be formally amended.

Why you should keep it: Addenda, amendments, and riders are often related to home inspections or appraisals, and because they change the original terms of the signed contract, they’re worth holding onto.

For instance, if both parties signed a repair addendum, where the seller agreed to make certain repairs based on the home inspection, you’ll need this addendum if you find issues with the repairs down the road.

4. Seller disclosures
Sellers are required by law to disclose certain problems with the home, both present and past, that they’re aware of that could affect its value. While laws vary by state, these disclosures might include lead-based paint, pest infestations, and renovations done without a permit.

Why you should keep it: If major problems crop up with your home after you move in, these disclosures can be the basis for a future lawsuit against the seller. If you lose them, you might have trouble holding the seller accountable in a court of law.

5. Home inspection report
After your home inspection, your inspector should produce a report with detailed notes on the condition of the home and any potential problems.

Why you should keep it:  This document is an extremely detailed list of everything that the home inspector finds, and it typically includes photos of problem areas. By keeping this report, you’ll have a record of any repairs that you may need to make to the property in the future.

6. Closing disclosures
Mortgage lenders must provide borrowers with a closing disclosure (also called a CD) at least three business days before settlement. This document spells out things such as your loan term (typically 15 or 30 years), loan type (a fixed-rate or adjustable-rate mortgage), the interest rate, and closing costs, among other financials.

Why you should keep it:Y our CD is an itemized list of all the costs associated with closing and your mortgage, and it’s important to have for future reference. It’s also the document you’ll need when you go to file your taxes, since you can take deductions for things such as mortgage points.

7. Title insurance policy
Title insurance offers protection against any competing claims to a home. As part of the process, the insurer will run a title search of public records, seeking loose ends such as liens against the property or fraudulent signatures on ownership documents.

Why you should keep it: You’ll need this document in the event another party, such as a previous owner, tries to claim the property. Note that there is separate title insurance to cover lenders versus buyers, and you would do well to get a policy for yourself.

8. Property deed
When you take title and become the sole owner of the property, you’ll receive a deed—a legal document that confirms or conveys the ownership rights to the home, says Anne Rizzo, associate vice president of Detroit-based title insurance company Amrock.

“It must be a physical document signed by both the buyer and the seller,” Rizzo says.

Typically, the property deed is mailed to you after the title transfer documents are recorded in your county’s public records office.

Why you should keep it:  Presenting a property deed is the only way to show someone you legally own the home you’re residing in. Because the deed is sent to you directly, neither your mortgage lender nor title company is required to keep a copy of it.

By: Daniel Bortz

 

Consider me your #1 resource for all things Real Estate! Household changing? Getting married (or divorced)? Time for a change of scenery or job relocation? Want to invest? Just send me an email or call 619-888-2117 – I can help.

 

Popular Projects

May 31, 2018

Consider me your #1 resource for all things Real Estate! Household changing? Getting married (or divorced)? Time for a change of scenery or job relocation? Want to invest? Just send me an email or call 619-888-2117 – I can help.

 

Real Estate @ A Glance – May 2018 Edition

May 22, 2018

Local Market Update - San Diego County - Real Estate
Real estate is about location, location, location . . .  If you have questions about the market in your specific area, please contact me via email or call 619-888-2117.

 

Many sellers and builders are in a good position for financial gains, as the economy continues to favor putting existing homes on the market and building new homes for sale. We are finally beginning to see some upward movement in new listings after at least two years of a positive outlook. There may not be massive increases in inventory from week to week, but a longer- term trend toward more new listings would be a good sign. Low inventory should continue to create a competitive situation for buyers, causing price increases over the next several months. Being quick with an offer is still the rule of the day as the number of days a home stays on the market drops lower. If that wasn’t enough for buyers to mull over with each potential offer, being aware of pending mortgage rate increases is once again in fashion.

 

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San Diego Makes Room for Accessory Dwelling Units

May 17, 2018

(Image: Hausible.com)

 

(Contributing information from the Ruland Design Group)

In an effort to add much needed affordable housing to the stock, the City of San Diego (and other cities within the County) recently made changes in zoning codes and slimmed down fees making it easier and less expensive to add an additional dwelling onto your property. This has added to the growing public interest in the topic so I would like to provide some basic insight here into the benefits and process.

Accessory Dwelling Units (ADU) are additional dwellings on a residential, single family property. Essentially they are a secondary living space that can be added to almost any residential property. The two structures are located on the same property and cannot be sold separately. There are many terms used for these additional units including a granny flat, casita, guest house, in-law suite, carriage house, garden cottage, studio apartment, tiny house, and more. These dwellings include apartments over the garage, attached to the house, or free-standing units.

The new zoning code allows these units to have a full kitchen. Since their size is only limited by the size of the primary residence, the ADU can be larger than a traditional granny flat. And with the full kitchen, you can legally rent out the second unit.

What are the benefits?

There are many benefits to adding a second unit to your property. These can include:

  • An increase in the value of your property
  • Increased income from rent
  • A  safe and affordable housing option for elderly or disabled family members or care givers

What does it take to add an ADU?

There are two phases to build an ADU, the design phase and the construction phase. In the design phase, it is critical to understand your vision, funding, and scope of your project. The planning phase kicks off the process and lasts until the permits are obtained and you are ready to break ground.

In the design phase you will want to consider:

  • Location- do you want to build a studio over your garage, or a free-standing unit in the backyard?
  • Feasibility- structure analysis, identifying the municipal codes, zoning codes and obtaining the required permits.
  • Budget- this will help identify the scope, size, and details of the project. If you don’t have the cash you will need assistance with financing options.
  • Schematics- based on your goals, design preferences, property, budget and any additional considerations that need to be taken into account.
  • Vendors- architects, general contractors, electricians, plumbers , designers and more.

What are the requirements and permits needed?

There are different requirements and permits needed based on where you live in San Diego. Here are the ADU requirements for the City of San Diego as well as the County.

Download City Requirements

Download County Requirements

 

If you are interested in finding out more about ADUs on an existing property or new property, please send me an email or call 619-888-2117 for referrals and assistance.

 

Interest Rate Impact

May 10, 2018

Consider me your #1 resource for all things Real Estate! Selling, buying, upsizing, downsizing, relocating, investing, vendor referrals, shoulder to cry on during renovations and more. Just send me an email or call me at 619-888-2117.

 

 

 

NOTE:  Now may be a good time to jump off the fence and lock in a good rate.  

 

14 Predictions For The Future Of Smart Home Technology

May 3, 2018

 

Shutterstock

 

Article by: Forbes Technology Council is an invitation-only, fee-based organization comprised of leading CIOs, CTOs and technology executives. Members are hand-selected by the Council’s selection committee. Find out if you qualify at forbestechcouncil.com/qualify. Questions about an article? Email feedback@forbescouncils.com.

 

A decade ago, the idea of controlling your home’s thermostat, lights and security systems remotely via smartphone would have seemed like futuristic science fiction. But 2017 proved to be the year of the smart home. Technology in this market continues to grow leaps and bounds, and Zion Market Research predicts it will reach $53.45 billion by 2022.

2018 holds even more promise for the smart home industry, as devices like Google Home, Alexa and Amazon Echo become more commonplace and artificial intelligence becomes more sophisticated. We asked 14 members of Forbes Technology Council what they think consumers can expect in the coming year.

1. The Next Security And Privacy Crisis

We have shared our digital footprint for convenience. With smart home technology, we are sharing our physical footprint. It is not a matter of if but when these systems will be compromised, and the consequences could be much more severe than lost social security numbers. Addressing security and privacy will become a fundamental concern that will shape this industry. – Dimitri StiliadisAporeto

2. Integration Of Smart Home Devices

Integration will make or break smart home technology. Navigating goofy AI misunderstandings for 12 appliances and the front door is not the way of the future. But can smart homes make sure you remembered to turn off all the lights? Lock up? De-activate alarms upon recognizing your face? I believe we will see more integration that supports homeowners in 2018. – Arnie Gordon, Arlyn Scales

3. A Greater Role For Artificial Intelligence

I’m wrapping up repairs and renovations on an investment property, and we opted to install a bunch of Nest and Ring products to better secure our investment. The video surveillance is great, but I can see AI being used to automate threat detection and maybe more proactively alert us if something goes awry. This would revolutionize the human aspect of remote video monitoring. – Tim MaliyilAlertBoot

4. A Focus On Surveillance And Appliances

Homeowners will like the idea of more cool ways to control their homes. Surveillance has become more necessary to combat crime, as more people work from home and want to protect their physical and intellectual property. Appliances also could be a focus since people would like their appliances to take on more of the workload. – Chalmers BrownDue

5. New Smart Home Use Cases

In 2017, the majority of applications revolved around security and thermostats, and the devices did not interoperate. In 2018, smart home device makers will take a platform approach, and the devices will interoperate and new use cases will emerge such as appliance diagnostics, energy conservation and the prevention of major damages during natural disasters. – Naresh SoniTsunami ARVR

6. Homeowner Data Sharing

Sharing the data of homeowners with businesses will probably be the next big thing in smart home technology. Having your fridge order the food you need or setting the lights and preferred temperature for your arrival is what is coming soon. The data that you share with the smart devices will be of great interest to the companies that build such products. – Ivailo NikolovSiteGround

7. Increased Efficiency, Control And Customization

AI is set to disrupt the home. Technology will become much more efficient, and we will be able to control everything from appliances to radio volume to security from one central place. As a matter of fact, as AI develops, we eventually won’t need to manually control anything, as these devices will automatically adjust to our preferences. – Arthur PerelessPereless Systems

8. Customer Service As A Differentiator

With more and more smart home devices entering the market, there is an opportunity for forward-thinking companies to use customer service as a differentiator. An IoT environment can present a number of challenges for consumers ranging from basic troubleshooting to privacy concerns. Companies that are innovative and knowledgeable about delivering customer service excellence will stand out. – Michael RingmanTELUS International

9. More Security Concerns

We’ll see a proliferation of integrated platform solutions from big players in tech. Amazon will offer in-home food delivery straight to your fridge, leveraging its smart home platform. However, security will be a concern; a customer’s home could be robbed by a contractor. I also see a future where passwords are leaked or homes get hacked, and that’s something the big players need to plan for. – Neha SampatBuilt.io

10. Higher Cross-Compatibility Standards

I’m hoping for some real progress on standards. The smart home market has huge potential, but it’s still too fragmented. Consumers shouldn’t have to think about whether they want to invest in Nest, Amazon’s Echo line or products that support Apple’s Homekit. In 2018, I expect to see greater cross-compatibility and less focus on platform lock-in. – Vik PatelNexcess

11. Smart Kitchen Gadgets

I think we’re going to see more and more smart kitchen gadgets come on the market, such as rice cookers that are connected to Alexa, smart crockpots and integrated apps. We’ll be able to ask Alexa how much time is left on the device or control them from our smartphones at work. – Thomas GriffinOptinMonster

12. Smart Spaces Outside Of The Home 

Naturally, smart home tech will continue to become more accessible and inexpensive to the mainstream. As consumers become accustomed to the conveniences that come with smart tech, they will begin to seek out these efficiencies outside of the home. Next year, we’re likely to see an uptick in commercial smart building tech, particularly in offices seeking to adapt to more mobile workplace trends. – Arie BarendrechtWiredScore

13. The Replacement Of ‘Test Phase’ Products With Better Alternatives

As more technology and innovations are brought to the market, automation will make the home experience simpler and more pleasant. Next year will see an increase in the gadgets released in the IoT sphere. However, as this technology is relatively new, the testing phase will see the cleaning out of multiple products that are replaced by better alternatives. – Alexandro PandoXyrupt

14. Increased Voice Control Integration

Home technologies will integrate into so much more of our daily lives. Voice control of technologies that are included in your phone, TV, home audio and even car dashboard will be commonplace by the end of 2018. Voice is going to be the breakthrough advancement that really allows these technologies to become ubiquitous. – Tyler ShieldsSignal Sciences

 

 

Consider me your #1 resource for all things Real Estate! Household changing? Getting married (or divorced)? Time for a change of scenery or job relocation? Want to invest? Just send me an email or call 619-888-2117 – I can help.

 

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