February 2010
Palms/Mar Vista Area of Los Angeles
February 9, 2010 by Jane Peters · Leave a Comment
Palms (90034) is the oldest neighborhood in the city of Los Angeles. It is mainly a residential area with a large number of apartment buildings, the northwest, Westside Village, being the more upscale neighborhood. Even here approximately 70% of the residents are renters.
Westside Village Area of Palms
Since the mid ’90s, Palms has enjoyed an upturn in its fortunes due to the overflow from its up-and-coming neighbor, Culver City. Young professionals are drawn to the area because of its diversity, affordability and distance from the more congested Los Angeles areas. Palms will continue to grow especially with the forthcoming Metro Expo line from Downtown Los Angeles to Santa Monica passing through.
Area Schools:
Palms Elementary School
Charnock Road Elementary School
Clover Avenue Elementary School
Palms Middle School
Alexander Hamilton High School
Venice High School
Mar Vista (90066) is an economically diverse neighborhood of apartment buildings and single family homes. Its name is derived from some of the lovely ocean views near its hilly border with Santa Monica with some of the most expensive land in the community.
View Towards Century City from Mar Vista
Mar Vista is less densely populated than Palms as the residents fought off rezoning. However, around 60% of residents are renters.
Area Schools:
Beethoven Street Elementary School
Mar Vista Elementary School
Walgrove Avenue Elementary School
Mark Twain Middle School
Daniel Webster Middle School
Venice High School
More information about Mar Vista
Understanding How Mortgage Rates Work
February 28, 2010 by Jane Peters · 1 Comment
Thanks to Rick Pelleriti, Upfront Mortgage Broker, I am providing a video that explains in simple terms how mortgage rates are calculated.
The mortgage rate itself never changes, but the price associated with the rate you choose, does.
You may have heard the term “Yield Spread Premium”, also known as a rebate. This video should help you understand.
Buying a Home
February 27, 2010 by Jane Peters · Leave a Comment
The following are some of the basic steps you will need to consider:
How much can you afford?
Your first step is to consult a mortgage professional. They will be able to tell you the price range in which you should be looking. In this market, your realtor is going to insist that you are pre-approved, before they spend their time and yours looking at houses that are not within your reach. There is nothing more disheartening than getting excited over homes you cannot afford.
What the Mortgage Broker Does
The mortgage broker will inform you how much down payment and monthly payments you can afford based on your income, savings, etc and on the various mortgage programs available which will determine your buying power. Closing costs will also be taken into consideration. These include, your share of escrow fees, loan fees, cost of inspection(s), pro-rated property taxes and other miscellaneous charges.
When you find the house you want to buy, you need to be ready to go. This is a tough lending market and in a multiple-bidding situation (yes this still happens) the most qualified buyer is going to get the home.
Find Your Home
Define your wants and needs. Make a list of priorities: Location, size of house, lot, number or rooms, etc. The more specific you are, the more efficient the process will be. Based on your budget your agent will be able to help you to target your search more efficiently.
Be prepared to make an offer. Chances are, if you like something there are others who will like it too. If you are waiting for a deal the market is going to pass you by. If you are looking to live in your home for several years, buying one that you love is going to be a deal in the long term.
Real Estate 101 is a great resource for first-time buyers.
Make An Offer
With your agent’s help you will submit a Purchase Contract to the Seller. The cleaner the offer, the better the chance it will be accepted. The offer is time-sensitive and if it is a reasonable one, the Seller will either respond with a signed acceptance, or you will receive a Counter Offer and then the ball is in your court. You can either accept the counter, submit your own, or simply walk away.
Once the Offer is Accepted..
The fun starts. You are now in escrow.
A Home Inspection will need to be done immediately, and it is advisable that you are present for that inspection. Upon reviewing the Inspection Report you will have to make a decision. You can ask for repairs to be done. You can ask for credit through escrow. You can ask for a reduction in the price of the home. You can also choose to do the work yourself. Or, you can walk away from the home.
There will be a ton of paperwork to fill out, a lot of it time sensitive, so you need to make yourself available during the escrow process.
Once all the contingencies have been removed, the main ones being Loan, Appraisal and Inspection, then you have basically committed to purchasing the house. The next step will be to sign the Loan Documents. They will be sent to the lender, the lender will fund and the next day title should be transferred into your name, you will be given the keys and the house is yours.
How to Prepare to Take Ownership
Generally you will take over the utilities that the Seller is using, such as gas, electric, water, etc. Arrange to have everything transferred over on the day you take possession. The Seller most likely will have canceled the services in his/her name the same day and you will not be charged to reinstate them.
Selling a Home
February 27, 2010 by Jane Peters · Leave a Comment
Things to consider when contemplating listing your home in Los Angeles
Price:
Pricing is everything in today’s market. Gone are the days when you could list your house and buyers would scramble to make an offer. Overpriced homes typically stay on the market a long time and end up selling for less than the house below its value. Also, homes sitting on the market are perceived as having problems. Houses priced attractively sometimes receive multiple offers and sell for over the asking price.
Your real estate agent agent will help you look at the comparable properties (comps) that have sold in the area, the only worthwhile comps which should be considered. Another property on the market and sitting unsold is not a comp.
Prepare your home: Remodeling your home to encourage a higher price is not advisable. Your taste may not be a buyer’s and all you will hopefully recoup is the money you put into the remodeling. Simply presenting an uncluttered, clean home, maybe a freshly-painted outside, and nice landscaping to provide a good first impression is all that is needed in an older house.
Put it on the market: and be ready for those open houses. You should not be home during open houses. It is also advisable to accommodate buyers as much as possible for private showings with your agent.
Review Offers. Make sure you are available during the course of a listing to review offers. They are usually time-sensitive. Your agent will request paperwork to ensure that the buyer is financially able to purchase the house and go over the purchase contract. Main contingencies to consider will be:
- Amount of down payment
- Contingency removal dates – loan and appraisal are usually 17 days, although in this market this may be extended
- Length of escrow period – the standard is 30 days, but again, in this market this may need to be extended
- Length of inspection period. The standard is 17 days, but this should be shortened to a maximum of 7-10 days. It is easy for a buyer to get all inspections done within that time period. If they need an extension for a reasonable cause this can be granted
- Make sure that the Buyer does not have to sell their home in order to purchase yours. This can hold up your sale with no guarantee that they Buyer will ever perform.
- Check for any other unusual requests that may delay the sale.
Remember that the first offer is usually the best. If it is a reasonable offer beware of thinking that you may get a better one. You probably won’t.
Also, make sure you understand what you will net from the sale after closing costs, including the agent’s commission.
Seller is responsible for paying – Title. Your portion of escrow fees. Generally a home warranty for the Buyer. The following is an example of some of the requirements for the City of Los Angeles – each city has its own – City Report, Natural Hazard Report, etc. Termite Inspection and paying for work required under Section 1 of that report. Retrofitting Inspection and any corrections required after inspection.
Prepare for the escrow period: The Seller also has to abide by various contingency periods. Make yourself available to sign the mass of paperwork that will be thrown at you. Most of it is standard, but if you need an explanation, don’t be afraid to ask your agent. You will need to have the property inspected by a licensed pest control company for termites and also a licensed retrofitting company to ensure that the home meets the required standards. These inspections are time-sensitive. The corrective work, needed, has to be completed before the close of escrow.
Once all the contingencies are addressed and, where needed, removed, the property is in solid escrow and the Buyer has basically “purchased” the home.
Close the deal. The Seller needs to be out of the home by the time stated on the day of close of escrow, usually 5:00 p.m. Everything should be in place to hand the property over to the new owners. Here is a checklist to get you started. Cancel electricity, gas, lawn care, cable and other routine services. If the new owner is using the same services he/she will change the name on the account on the same day in order not to lose those services. Gather owner’s manuals and warranties for all conveying appliances.
Purchasing a New Primary Residence
February 23, 2010 by Jane Peters · Leave a Comment
If you are looking to buy a second home and wish to keep your previous home as a rental here are your options:
Your primary residence must have 30% equity and an appraisal will be ordered to confirm this. A rental survey will also be ordered so that the mortgage payment can be washed out.
or
Both mortgage payments must be included in qualification.
or
The new property would be purchased as non owner-occupied.
Don’t Let the Credit Report Companies Market Your Personal Information
February 9, 2010 by Jane Peters · 1 Comment
The major credit report companies, Equifax, Transunion, Experian are marketing the information they gather from your credit reports.
Opt Out of Credit Report Marketing
Are you tired of receiving unsolicited offers of credit and insurance? Do you know how they receive your information?
The major credit report companies are providing this information. The Fair Credit Reporting Act (FCRA) permits this, but it also permits you to opt out of receiving these mailings.
To opt out go to OptOutPrescreen.com
