There are loan programs available for first time homebuyers that can enable you to purchase a home for little to no money down. They offer fixed low interest rates and the loans range from a down payment credit for residing in a high cost of living area, to offering a percentage of the purchase price to use towards down payment or closing costs, to a below market interest rate for teachers in eligible school districts.
CalHFA interest only 'Plus' offers up to 100% financing and allows borrowers to pay only the interest on the first five years of a 35-year term. After that, borrowers pay principal and interest at the same low fixed interest rate for the next 30 years. CalHFA also offers 30 and 40 year fixed mortgages with up to 100% financing and below market fixed interest rates. These programs were developed in response to the ARM loans that populated the mortgage lending climate in the last several years.
These types of loans require a minimum 620 credit score plus 3 years of tax returns as well as pay stubs, in order to process and qualify for them. You can also "layer' many of these loans, meaning you don't necessarily have to use just one, you might be eligible for many different loan options. Your mortgage broker can help you determine which ones are right for you.
Thursday, March 29, 2007
Tuesday, March 20, 2007
New Buyers
February saw a peak in new mortgage applications. So while we are reading about the bad state of the rela estate market there is a new group of buyers getting ready to jump in.
Mortgage applications surge as rates fall; Mortgage Bankers Association's weekly index shows that interest rates edged downward to lowest level since early December.
Alameda is seeming some crazy overbidding. A 3/1.5 listing on Gibbons Street brought multiple offers and a final sale price of $850,000. Other deals are in process so we can't publish prices, but multiple counter ooffers and selling prices way above asking are being seen again after a very quiet year. No one can tell if this is anectodal or the beginning of a very busy spring season. But then again Alameda is suffering from inventory shortage. In parts of Oakland and Berkeley things are at a standstill. Towns like San Leandro have plenty of properties on the market keeping prices at a standstill.
Mortgage applications surge as rates fall; Mortgage Bankers Association's weekly index shows that interest rates edged downward to lowest level since early December.
Alameda is seeming some crazy overbidding. A 3/1.5 listing on Gibbons Street brought multiple offers and a final sale price of $850,000. Other deals are in process so we can't publish prices, but multiple counter ooffers and selling prices way above asking are being seen again after a very quiet year. No one can tell if this is anectodal or the beginning of a very busy spring season. But then again Alameda is suffering from inventory shortage. In parts of Oakland and Berkeley things are at a standstill. Towns like San Leandro have plenty of properties on the market keeping prices at a standstill.
Friday, March 9, 2007
What Kind Of Market Are We In?
Sellers market, buyers market, normalizing market, stabilized market... where are we now? Well, it depends on who you ask, for there are many differing opinions rattling around out there, a true indication that things are definitely changing in the marketplace.
The real estate market is regarded as an "imperfect" market, because home prices vary astronomically at times according to many factors such as location, improvements, school districts, size, style and many others. The values of these homes are determined by both buyers and sellers... by what the buyer is willing to spend on a specific property as well as what a seller is willing to accept.
In Alameda, as well as other cities around the East Bay, we are seeing that, if a home is priced below market value, interest is increased, thus creating a buzz surrounding the property and ultimately culminating in multiple offers on the home. Quite reminiscent of the bidding wars of the last few years, however, different in that the bidding now is starting at a lower price. Inventory is low, which means that buyers are still having to compete for well-priced properties, therefore it can't really be referred to as a buyers market. And we aren't seeing the price point peaks that we were seeing a couple of years ago, when buyers were forced to forgo contingencies and inspections with their high priced offers. So, a sellers market it definitely isn't. So what is it? I think it is a normalizing market. Sellers are still on occasion getting top dollar for their property, but oftentimes buyers are holding the cards.
Inventory is not high enough for there to be a glut of homes where buyers can just take their pick, but if they play their hands right, buyers can walk away with exactly what they are wanting. And at a price that is, by the Bay Area benchmark - and the rest of the country notwithstanding - reasonable.
The real estate market is regarded as an "imperfect" market, because home prices vary astronomically at times according to many factors such as location, improvements, school districts, size, style and many others. The values of these homes are determined by both buyers and sellers... by what the buyer is willing to spend on a specific property as well as what a seller is willing to accept.
In Alameda, as well as other cities around the East Bay, we are seeing that, if a home is priced below market value, interest is increased, thus creating a buzz surrounding the property and ultimately culminating in multiple offers on the home. Quite reminiscent of the bidding wars of the last few years, however, different in that the bidding now is starting at a lower price. Inventory is low, which means that buyers are still having to compete for well-priced properties, therefore it can't really be referred to as a buyers market. And we aren't seeing the price point peaks that we were seeing a couple of years ago, when buyers were forced to forgo contingencies and inspections with their high priced offers. So, a sellers market it definitely isn't. So what is it? I think it is a normalizing market. Sellers are still on occasion getting top dollar for their property, but oftentimes buyers are holding the cards.
Inventory is not high enough for there to be a glut of homes where buyers can just take their pick, but if they play their hands right, buyers can walk away with exactly what they are wanting. And at a price that is, by the Bay Area benchmark - and the rest of the country notwithstanding - reasonable.
Monday, March 5, 2007
Investigate Your Potential Home Using All Five Senses
The title says it. You can use each of your sensory organs to scope out potential problems and identify things you like about each property that interests you in order to determine whether or not it will be the right fit.
• Sight –Look around the home fully. Notice any cracks in the ceiling, walls or foundation. See if there are any other defects that might lead to further problems down the road or if they might only need some cosmetic work. Take note of what you like about the quality of the floors, the size of the rooms and the details of the home such as crown molding, wainscoting, tile, paint color and floorplan.
• Hearing – Listen to the sounds of the home. If it is windy outside, do you hear the wind coming in through any of the windows? Is the home near a BART station where you can hear the train as it passes? Can you hear any traffic noise going by? What about loud neighbors or fast cars driving with their windows rolled down and music blaring? You might need to hang around for a while in order to fully investigate this, but it is something to think about if you are considering living there for several years.
• Smell – Use your nose to sniff out any potential problems such as stained carpet padding from pet urine or smoke soaked wallpaper from in-home smokers. If these are problems, you can likely negotiate with the seller to either make the necessary repairs or issue you a credit to have them done.
• Touch – Feel the materials throughout the home. The siding on the home may look like wood, but feel it to find out. It could be vinyl. Touch the countertops, do they have a nice smooth finish or are they cut and cracked? Take notice of the floors underneath you. Do they slope? If they do, you can feel it with your feet.
• Taste – Okay, this one is more elusive, but it can apply here using it in a different, more esoteric way. You know the expression “it left a bad taste in my mouth”? This is how you can utilize taste to investigate your future home, in the sense of instinct rather than literally tasting (I certainly don’t advise you to go around licking surfaces). How does the home feel to you? Does the energy strike a cord with you or do you feel turned off by it in general? Are there certain rooms that make you happy? Do others depress you? Pay attention to your intuition regarding the home. Your gut reaction to most things are almost always right.
Using all of your given faculties will help you to make an informed decision during the investigation process. If you happen to be lacking in any of these senses, no worries! As you know, the rest of your senses will take over for the one that’s missing. Happy hunting!
• Sight –Look around the home fully. Notice any cracks in the ceiling, walls or foundation. See if there are any other defects that might lead to further problems down the road or if they might only need some cosmetic work. Take note of what you like about the quality of the floors, the size of the rooms and the details of the home such as crown molding, wainscoting, tile, paint color and floorplan.
• Hearing – Listen to the sounds of the home. If it is windy outside, do you hear the wind coming in through any of the windows? Is the home near a BART station where you can hear the train as it passes? Can you hear any traffic noise going by? What about loud neighbors or fast cars driving with their windows rolled down and music blaring? You might need to hang around for a while in order to fully investigate this, but it is something to think about if you are considering living there for several years.
• Smell – Use your nose to sniff out any potential problems such as stained carpet padding from pet urine or smoke soaked wallpaper from in-home smokers. If these are problems, you can likely negotiate with the seller to either make the necessary repairs or issue you a credit to have them done.
• Touch – Feel the materials throughout the home. The siding on the home may look like wood, but feel it to find out. It could be vinyl. Touch the countertops, do they have a nice smooth finish or are they cut and cracked? Take notice of the floors underneath you. Do they slope? If they do, you can feel it with your feet.
• Taste – Okay, this one is more elusive, but it can apply here using it in a different, more esoteric way. You know the expression “it left a bad taste in my mouth”? This is how you can utilize taste to investigate your future home, in the sense of instinct rather than literally tasting (I certainly don’t advise you to go around licking surfaces). How does the home feel to you? Does the energy strike a cord with you or do you feel turned off by it in general? Are there certain rooms that make you happy? Do others depress you? Pay attention to your intuition regarding the home. Your gut reaction to most things are almost always right.
Using all of your given faculties will help you to make an informed decision during the investigation process. If you happen to be lacking in any of these senses, no worries! As you know, the rest of your senses will take over for the one that’s missing. Happy hunting!
Thursday, March 1, 2007
Sewer Lateral Inspections
Many cities have requirements for inspecting a home's sewer lateral at the time of a sale. The sewer lateral is the sewer line that runs from the house to the street. In some cases the sewer lateral runs from the back of the house or is connected to neighboring homes. The purpose of the sewer lateral inspection is to assure that raw sewage is not leaking into the ground under or around your home.
The city of Berkeley has a relatively new compliance policy. The policy is well defined and extremely important to understand if own or plan to own property in Berkeley. You can find out all the information about the policy at their website: http://www.ci.berkeley.ca.us/pw/sewers/pvtlat.html
The city of Berkeley has a relatively new compliance policy. The policy is well defined and extremely important to understand if own or plan to own property in Berkeley. You can find out all the information about the policy at their website: http://www.ci.berkeley.ca.us/pw/sewers/pvtlat.html
Lead Safety
There are many things owners of older homes should know about their homes. One of them is the potential for lead in the home. Lead was an ingredient in paint used in homes, until is was removed in 1978. So homes built before 1978 (which is most of the homes in the East Bay) have the potential for lead exposure to occupants.
Lead is extremely dangerous for children and pregnant women. Lead poisoning is completely preventable and screening is available. We can test people AND homes. Yes, you can have your home tested for lead so you know where it is and how to deal with it.
The county of Alameda has a Lead Poisoning Prevention Program. They provide free in-home consultations and can provide free lead testing kits. Contact them at 510-567-8280 or check out their website at: http://www.aclppp.org
Lead is extremely dangerous for children and pregnant women. Lead poisoning is completely preventable and screening is available. We can test people AND homes. Yes, you can have your home tested for lead so you know where it is and how to deal with it.
The county of Alameda has a Lead Poisoning Prevention Program. They provide free in-home consultations and can provide free lead testing kits. Contact them at 510-567-8280 or check out their website at: http://www.aclppp.org
Jack London Square Tour Report
We had a wonderful day in Jack London Square for the guided home tour last Sunday. The rain held off and we were able to do most of the tour on foot. We saw 9 properties during our 2-hour tour. The properties ranged in size from a 1 bedroom condo with 889 square feet to a 3 bedroom condo with 2019 square feet. List prices ranged from $470K to $749K. We were very fortunate to find properties available in 4 different buildings ranging in size from 10 to 224 units. We visited The Sierra at Jack London Square, Pocket Lofts, Tower Lofts and New Market Lofts.
During our tour we talked about the important features of condominiums and how they are different from detached homes. We also talked about the Jack London Square neighborhood; who lives there, crime & security issues, living in a converted industrial building, train and highway noise, night life, restaurants, etc.
Please join us for future events and invite your friends. There is a lot to know about purchasing real estate and these events are designed to familiarize novice buyers with many aspects of the buying process.
During our tour we talked about the important features of condominiums and how they are different from detached homes. We also talked about the Jack London Square neighborhood; who lives there, crime & security issues, living in a converted industrial building, train and highway noise, night life, restaurants, etc.
Please join us for future events and invite your friends. There is a lot to know about purchasing real estate and these events are designed to familiarize novice buyers with many aspects of the buying process.
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