Are You a First Time Home Buyer?

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First time home buyerWith the real estate market recovery on its way, many people who did not have an opportunity to own a home before now are likely to become homeowners in 2015. I frequently meet people in their early 30s who are shopping for their first home and they all face similar learning curves. Here are a few of the most important things first time home buyers need to know to make that all important decision the right one.

  1. Choosing a Location – Location of the property is probably the most important factor to consider while buying a home. In fact, choosing the right location is more important than the general condition of the house since one can always upgrade or remodel later, but the location cannot be changed. In general, single family homes in quiet, serene neighborhoods are more desirable than those on larger streets because of noise and traffic. Homes which offer a view of the hills, a lake, or a golf course hold their value because of the visual appeal as do homes that afford privacy. However, if you have a busy lifestyle, enjoy evenings out or want to save on commute, a townhome or a condo near the downtown areas may be just the thing for you.
  2. School District Matters – Look for a home which is in the neighborhood of good schools. This is important even if you don’t have school going children, since homes in good schools areas are more in demand and have better potential for both selling and renting out in the long run. For school information you can check the local school district website or go to GreatSchools.com.

The California Department of Education began using the Academic Performance Index (API) in 1999 to measure the school performance of nearly 10,000 public schools. Many parents use this score when determining what they consider to be the most desirable school areas. You can see scores for all California schools by going to http://www.cde.ca.gov/ta/ac/ap/. And you can search home for sale by School and/or API scores by going to ChalkBug.com.

  1. Neighborhood Amenities – Look for a vibrant community with good amenities for the entire family in the vicinity. Shopping, libraries, community centers, sports and recreational clubs, medical care and senior citizen facilities should be ideally within a five mile radius. Access to freeways and other arterial highways is also important; ideally not too close and yet not too far.
  2. Neighborhood Crime Rate – This is another aspect to investigate. The local police station will have statistics on crime or go to crimereports.com, enter your zip code and find the relevant information.
  3. Comparing Similar Homes – While choosing a home, ask your agent to do a comparative analysis of at least three similar homes in the neighborhood which have sold recently. This will give you a realistic indication of the market situation and what kind of amenities you can expect to have in a house in that price range.
  4. Independent Home Inspection – It is important to verify all details about the house – i.e. size, age, condition of the structure, from foundation to roof, and all other amenities. Check for potential water concerns – this includes, but is not limited to, wetness in the crawl space/ basement, grading around the house, signs of roof leaks – and pest or termite infestations. All of the above can be verified by having a thorough home inspection independently done.
  5. Permits of Remodeling Jobs – Ask for permits of any remodeling work that’s been done on the house. You can save yourself a lot of headache and expense later on dealing with construction that may be deemed illegal by the county authorities.
  6. Having a Buyer’s Agent – You will also benefit from engaging the right real estate agent who will represent you, the buyer. A buyer’s agent has access to all the properties on the market as well as some not yet on the market. The agent will, first and foremost, safeguard the buyer’s interests. Once you zero in on a desired location, it is best to engage an agent who specializes in that area and can quickly scout out the best home deals.

 

 

While touring properties, do not dismiss one because you think the listed price is too high or some features are not up to the standards you desire. Remember, the listed price is only a starting point and it is possible to redo a bathroom, the kitchen or even the yard. Offers can be made after factoring in any potential expenses towards upgrading the home.

I am happy to provide any consultation to both sellers and buyers. Feel free to call me on 408.656.8240, or email me at: tswan@apr.com. In 2014, I closed $75million in sales and was among the Top 10 agents in Santa Clara County. I am also among the Top 5 individual agents in all of Alain Pinel Realtors.

February 2015 Almaden Valley Market Update

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The seasonal holiday slowdown we see in Almaden Valley real estate is firmly behind us, and February sales data shows we are on target to hit our usual high time in spring. Sellers are putting homes on the market (albeit in not enough numbers to satisfy buyer demand) and the dramatic increase in pending sales demonstrates that buyers are ready to buy.

Although the number of homes offered for sale is still too low for the demand, they are up when we compare data from the same time last year. However, despite the fact that the number of homes for sale in February 2015 was 12% higher than it was in February 2014, the fact that the number of homes sold during this same time frame increased almost 19% indicates that buyers are eager for more inventory.

The slight drop in average price per square foot that we saw in January more than recovered in February. In December 2014, it was $536/sq.ft., edging downward slightly in January to $525/sq.ft. and rebounding to $541/sq.ft. last month. This is the highest we’ve seen it since September 2014 when the average price per square foot topped $554, a market high for the past several years.

Almaden Valley real estate remains firmly a seller’s market. If you are thinking about selling, give me a call, text or email and let me show you how I can help you get the most for your home!

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8 Tips for Finding Your New Home

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Finding your new home

 

Article From BuyAndSell.HouseLogic.com
By: G. M. Filisko
Published: February 10, 2010

 

 

A solid game plan can help you narrow your homebuying search to find the best home for you.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself.

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look.

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com (http://REALTOR.com) to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order.

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline.

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term.

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR.

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS?, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS?. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic.

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues — like noise levels — that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit.

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.


G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR? Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

October 2014 Market Update

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Almaden Valley real estate continues to strongly favor sellers despite being in the midst of the seasonal slowdown. Although the number of sold single family homes in October 2014 (16) is down significantly from October 2013 (28), the average price per square foot has increased over 9% over the same time period ($507 versus $459.) This price increase indicates that buyers continue to be bullish on Almaden Valley single family homes.

Although many buyers and sellers choose to postpone entering the real estate market during the holidays, now can be the perfect time to market a home. With many sellers pulling their homes from the market this time of year and many more deferring offering their homes for sale, the decreasing competition for buyers can work out to a seller’s advantage. If you are thinking about selling your Almaden Valley home, give me a call or send me an email and let me show you how I can help sell your home!

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September Market Update

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Almaden Valley real estate continued the annual holiday cooling trend in September, although we did see a bit of an upswing in the number of single family homes in pending status (ie had accepted offers.) When we compare September 2014 with September 2013, we see that the number of single family homes for sale and those that have sold have dropped significantly from the same time last year yet the number of homes that are pending has remained virtually the same. This indicates that Almaden Valley real estate is still in demand despite the drop in inventory. The average price has reached a high point of about $550/sq. ft. which merely supports the fact that buyers are still bullish about homes here.

Although many sellers think that the real estate market softens during the holidays, numbers indicate that buyers are actively looking for homes this time of the year. It could actually be in a home seller’s best interest to market their homes NOW, when other home sellers are taking their homes off the market or deferring sales until the holiday season are over. Fewer homes on the market mean less competition for hungry buyers.

If you are thinking about selling your home, give me a call or send me a message and let me show you how I can help you take advantage of this special time of the year!

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August Market Update

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If historic trends are any indication, Almaden Valley real estate is entering the holiday season right on time. Generally speaking, August/September sees the number of homes on the market and under contract drop until they bottom out in around December. In looking at data over the last several years, it looks like we’re right on time.

When studying the market over the last two years, one thing that stands out is that the number of homes on the market has dropped significantly, but the number that have sold has remained fairly stable as the graph demonstrates. The first week of September 2012 saw 59 single family homes for sale in the MLS. The same time in 2013 saw 42 homes, and this week there were 30. 35 single family homes had sold in August 2012, 54 in August 2013 and 39 last month.

Although we are entering the traditionally slower-paced holiday season, buyers are still eager to purchase. Now is an excellent time for sellers to put their homes on the market. Since the trend is for home owners to wait until the post-holiday season upswing to list their homes, those who do so now will face less competition for buyers.

If you would like to know how you can take advantage of the unique nature of Almaden Valley real estate, contact me and let me show you how I can help!

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July Almaden Valley Market Update

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Almaden Valley real estate continues to be a strong seller’s market. The surge in inventory of single family homes that we saw the beginning of June has all but evaporated, although it has increased slightly from last week. We’ve been experiencing a shortage of inventory for the better part of two years, which could explain why there is so much pent-up demand from buyers. Homes continue to sell at a brisk rate; the average days on market for Almaden Valley single family homes was 20 days in July. The average days on market in July 2013 was 23, but in July 2009 it was a 72 days, a stunning difference when compared to our recent market activity!

The average price per square foot withdrew somewhat in July, dropping slightly below levels to $521 from a high of $538 in June. Although we DID see a decrease, the overall trend is upward, and it is common to see months of increase followed by months of slight downward pressure.

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June Almaden Valley Market Update

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Inventory remains tight for Almaden Valley single family homes, with 39 available Monday July 14 versus 42 about a month ago. The number of homes under contract dropped from 57 to 42 over the same time frame, a clear indication that demand for homes is exceeding demand. The average price per square foot increased to $543 in June, up $16/sq.ft. from the previous month.

When we look at numbers from a year ago, we can see how hot the market is. The average price per square foot in June 2013 was $480, compared with the afore-mentioned $523 in June 2014, indicating a strong demand. With only about one month’s worth of inventory on the market, all indications are that we are in a strong seller’s market.

If you are thinking about selling your Almaden Valley home, call, email or text message me and let me show you how you can take maximum advantage of our unique market.

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May Almaden Valley Market Update

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Almaden Valley real estate is definitely a seller’s market. The number of single family homes put on the market increased from April 2014, but buyer demand rose to the occasion, and the number of homes with accepted contracts also increased. The average price per square foot has edged upwards as well, from $519/sq.ft. in April to $527/sq.ft. in May. Inventory is incredibly tight; with current buyer activity, there is just about one month’s worth of homes to meet the demand.

Increasing prices plus scarce inventory means that now is a GREAT time to put your Almaden Valley home on the market. If you would like additional information on how I can help you take advantage of this incredible market, give me a call or send me an email.

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April Almaden Valley Market Update

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Almaden Valley Real Estate single family sales volume dropped from March in an up-and-down pattern that we’ve been seeing this time of year for quite some time. However, the average price per square foot continues a gradual increase. At $519.80/square foot, the average price increased over 5% from March and over 18% from the same time last year.

The number of distressed (ie short sale, auction and bank-owned) has held steady at the same low level for quite some time, indicating that this aspect of Almaden Valley Real Estate has stabilized. Interest rates fluctuate slightly from week to week but have remained fairly stable as well.

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