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Renting vs. Buying

The dream of home ownership has instilled in us our entire lives. But after the housing crash of 2008, people are starting to see things through a different lens.

The True Cost of owning your home adds up. Taxes, repairs and mortgage payments equal much more than a rent check.

Renting on the other hand had more restrictions and rules to follow which is a deterrent for many. Balance that with less responsibility as a renter, the ability to call the landlord when something goes wrong and it looks like renting is a better choice.

Buying your home can be a good investment. Especially if you purchase a multi-unit home and occupy one of the units while renting out the others.

If you are a person who moves around a lot for work or for pleasure, you may want to consider the cost of buying and selling a home and be sure it is really worth your investment.

It comes down to what the market is doing in your area, the price to rent ratio and your own personal situation.

A New Generation of Realtors!

Do you ever wonder if the new generation of Millenials with there Tech Savvy intellect and cutting edge ideas might just have something to offer?

The fact is, we do! We came out of the gate thinking outside the box! We are saying, No More Boxes! Let’s open up the world to Global Possibilities right here in our own Front Yards! Because after all, we are all on this planet together.

We place emphasis on producing meaningful work, finding a creative way to solve problems and have a preference for immediate feedback. In Real Estate this means that we want results! We are not going to leave you wondering and We will find a way to Make it Happen!

The time has come to roll with the changes of this new generation and embrace to golden age of cyber space, technology and science. Bridge the gaps in cultures around the globe and keep it real in the Real World.

5 Steps to a Safer Home

Conduct a do-it-yourself home security check by walking around your house to assess what needs to be done to reduce the risk of a break-in.

A professionally installed and monitored home security system is a nice addition to your home’s defenses, but it shouldn’t be step one.

First, conduct your own home security check. After you’ve inspected your home’s doors and windows, make sure these essential steps are covered:

1. Keep your home well-maintained on the outside. Burglars want an easy target. Stand on the street outside your house and ask yourself: Does my property look neglected, hidden, or uninhabited? A front door or walkway that’s obscured by shrubbery offers crooks the perfect cover they need while they break a door or window. To improve security, trim shrubs away from windows and widen front walks.

2. Install motion detector lights. All sides of your house should be well-lit with motion-activated lighting, not just the front. Simple motion-activated floodlights cost less than $50 each, and installing them is an easy DIY job if the wiring is already in place.

3. Store your valuables. Thieves want easy-to-grab electronics, cash, jewelry, and other valuables, though some are not above running down the street with your flat-screen TV. Most make a beeline for the master bedroom, because that’s where you’re likely to hide spare cash, jewelry, even guns. Tour each room and ask yourself: is there anything here that I can move to a safe deposit box? Installing a home safe ($150 to $500) that’s bolted to your basement slab is a good repository for items you don’t use on a daily basis.

4. Secure your data. While you probably won’t be putting your home computer in a safe anytime soon, take steps to back up the personal information stored on it. Password protect your login screen, and always shut off your computer when not in use (you’ll save energy, too!) Don’t overlook irreplaceable items whose value may hard to quantify, like digital photos.

5. Prepare ahead of time in case the worst happens. Take a photo or video inventory of items of value in your home, and store the file online or in your home safe. Check that you’re properly insured for theft. Note that high-ticket items in your home office, such as computers, professional camera equipment, or other business essentials, may require an additional rider or a separate policy.

FSBO

What you should know when selling your property yourself.

Selling your home without an agent may sound empowering at first. It certainly may save you money on agent fees and commissions. However, the truth is that selling your home yourself can be very complicated. There is a lot that goes into the process that a typical homeowner wouldn’t know.

The simple truth is that as an FSBO (For Sale by Owner) individual, you don’t always know exactly what is involved when trying to sell your home. There is a lot of paperwork involved – some which you might not even understand.

That doesn’t mean you can’t do it.

Determining the right market value for your home

It is absolutely important to determine the fair market price for your home. You need to remember that the sentimental value you place on the house won’t be reflected in its actual market value. If you price it too low, then you may end up walking away with less than you should have in the first place. If you price it too high, there’s a chance it will take longer to sell, or not sell at all.

You have to price it just right. Allow yourself some wiggle room because people will likely try to negotiate a lower price. There are three ways that you can determine the value of your home:

  • Use real estate valuation websites: you can check sites such as Zillow or Trulia for a quick valuation of your property.
  • Hire an appraiser: this is the most effective way to get an accurate estimation of your property’s value.
  • Compare other homes in your area: what have other homes in your neighborhood sold for? Make sure that these homes are comparable to the one that you are selling. You’ll want to look at square footage, for example.

Remember that hiring an appraiser will still cost you money—around $300 to $500 for a report. Even then, mortgage companies won’t always accept it.

Get ready to work hard

You need to know that this process can be time-consuming. You have to prepare the home for the sale by making necessary repairs or improvements. You also need to create advertisements and field calls from potential buyers. You’re also responsible for finding appraisal companies and lawyers for the sale.

All of these essential tasks will take time and a fair amount of legwork. Because you likely also have other obligations, like a full-time job or a family, selling your home can get a little frustrating.

You won’t do it all by yourself

Although you are selling your home yourself, you are not the only person working on it. Many states require a real estate lawyer or title agent get involved in sales. This means that you have to find someone to help you with the sale. Once you do all this, you can close the sale. Hopefully, you make money on it.

Yes, selling your own house is entirely possible. Some people may even think it’s fun. It does, however, involve a great deal of work. Make sure to handle the entire process carefully because it is a large financial and legal transaction.

What’s In A Home Value?

It’s common knowledge that location, crime and neighborhood can affect a home’s value.  But what are some of the more invisible factors that influence sales?

The view from the backyard, the maximum angle that opens up to scenery or nature from your backyard.  This is measured from no scenic view at all to 180 degrees, indicating that the view is scenic from every angle.

Backyard exposure to neighbors.  How easily neighbors can see into a home and the backyard.

Are foreign investors driving up California Real Estate?

According to the California Association of Realtors, about 10 % of California single family homes in 2006 were purchased in all-cash transactions.  A decade later, it’s nearly 25%.   Many of these buyers are domestic buyers and some simply prefer California real estate to the stock market.

They estimated that 3% of last year’s purchases went to international buyers.  Their data even suggests the share of international buyers has been on a downward trajectory since 2008, but that could be undercounting due to the way the surveys are taken.

“For one thing, the survey is conducted in English,” said Oscar Wei, senior economist for the California Association of Realtors. “So if you have Chinese buyers and Chinese agents, they may not necessarily want to participate in a survey written in English.”

Wei also acknowledges that Realtors may not always know the citizenship status of their clients and that the timing of the survey could bias the overall results towards domestic buyers.

His rough estimate: 5 to 10 percent of the state’s single-family housing stock could be owned by international buyers.

So can we conclude anything reliable about foreign buyers?

We do have a decent grasp on where they’re coming from.

The fear of Chinese millionaires gobbling up American homes as just another piece in their global investment portfolio can veer into the cartoonish and xenophobic very quickly. As recently as 2014, Canadians purchased more U.S. homes than Chinese buyers, according to the National Realtors Association. And while Canadians are actually more likely to make all-cash offers, they receive nowhere near the scrutiny as the Chinese.

In California, however, Asian buyers do dominate: Last year they accounted for 71 percent of California homes sold to foreign buyers. That dwarfs the next closest group of international buyers, Latin Americans at 14 percent.

 

Commercial Trends, where are they headed?

We offer listings throughout California for sale or tax deferred exchanges.

Medical

  • By 2030, the 65+ population will rise by more than 20 million people and comprise over 20 percent of the U.S. population. Demand for medical providers will increase.
  • Millennials primarily rely on retail clinics, urgent care centers, and free-standing emergency rooms for their healthcare options.
  • Underserved rural populations are gaining better medical care through telehealth services.
  • Healthcare providers continue to push into communities by leasing space outside of traditional hospital campuses. Micro hospitals also are an emerging trend, especially for underserved populations.

Multi-Family

Consistent good performance is the mantra of the multifamily sector for 2018. Yardi Matrix predicts multifamily will continue its long run, buoyed by the strong economy and job growth; the shift to renting property by many baby boomers; and the continued support by millennials.

Most Markets Near Peak; No Signs of Bubble

Home prices in most U.S. housing markets are reaching their peak, but there’s no need to fear a repeat housing bust, according to a new joint analysis by Florida Atlantic University and Florida International University. Throughout the majority of the country, home prices have been rising steadily since 2012, and there are signs the runup may be starting to slow.

“Housing markets are slowing, suggesting that we are nearing a peak in housing markets around the U.S.,” says Ken Johnson, a real estate economist at Florida Atlantic University. “But this is good news, as we are pulling back from the brink, unlike we did in 2007.”

Researchers at the universities created the Beracha, Hardin & Johnson Buy vs. Rent Index, which shows that out of 23 metros areas studied, 13 are slightly to moderately in “buy” territory. That means owning a home is more favorable than renting for the majority of residents in that area. On the other hand, 10 metro areas were slightly to moderately in “rent” territory.

“Our data indicates that prices are above their 40-year trend but not significantly so, as they were in 2007,” says Eli Beracha, co-creator of the index and associate professor in the Hollo School of Real Estate at FIU. “Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”

Who are the buyers ?

The Millennials or Gen Y (24-38) held a market share of 36% over the past year. Gen Xers (39-53) ranked second at 26% f0llowed by the Baby Boomers with 32%.  While Millennials held a majority of the share in the home buying market, low levels of housing inventory and higher home prices held back many potential buyers.  Over the past year, the typical Millennial home buyer had a higher household income at $88,200 compared to last year of $82,000 and purchased the same size home 1800 square feet.  The market has also seen an expected increase in multi-generational homes as more adult children opted to live at home with their Gen X or Baby Boomer parents.

 

Contact Us

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  • (707) 444-3007
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