Home inspections have proved to be an important part of the home buying process. It helps prevent surprises and potential expensive problems. Therefore, it’s important to know what to expect.
When the inspector checks the outside of the house, they will be looking for the following things: drainage conditions, roof, chimney, and more. Inside the house they will examine: doors, windows, plumbing, electrical, appliances, heating system and water heater. They will also crawl under the house and up in the attic as well.
The home inspector will provide a detailed report (about 30 pages) regarding the condition of the home. They might even recommend what steps to take to correct an issue.
A typical home inspection will cost approx $400. And it’s well worth the money, because it can save you thousands of dollars in possible problems.
~ Barry Ripp
California’s “Unsold Inventory Index” (UII), a closely watched index indicating the number of months needed todeplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.
In December, the median price of an existing, single-family home rose to $306,820, an 8.4% rise from Dec.’08, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.
With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.
Governor Proposes $10K home buyer Tax Credit: During his final “state of the State” speech on Wednesday Jan. 6, Governor Schwarzenegger proposed a state income tax credit of $10,000 for first-time home buyers. The proposal would expand the tax credit for those purchasing newly constructed homes to include the purchase of existing homes by first-time home buyers.
For more information, contact me.
~ Barry
Here is some information on the real estate market. In my opinion, if you’re ready to buy a home, start looking now. There will likely be more inventory to chose from in the spring, but by looking now, you’ll be ready to make that final decision when the right house comes along.
Recent good news about the housing market has many home buyers wondering whether now is a good time to buy. For example, home sales activity increased 9.4 percent nationally in September, a 26 percent increase from a low point in January, according to the National Association of Realtors.
The $8,000 first-time buyer tax credit has stimulated the market, and it has been extended. A credit of up to $6,500 is now available to repeat home buyers who qualify.
Many buyers are having difficulty finding a home to buy. The inventory of good listings on the market is low in many areas because prospective sellers who don’t have to sell now are waiting for a better market. To aggravate the situation, many sellers who need to sell now often take their home off the market after Thanksgiving and will bring it back on the market next year.
Buyers may find there’s very little on the market to choose from for the next several months. However, they may also find that some buyers will drop out of the market over the holiday season, leaving less competition for the listings that are on the market during this period.
~ Barry Ripp
Information provided by C.A.R and used with permission.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/12/06/REAI1ARGC5.DTL&type=realestate#ixzz0ZnrVz7Rf
Great news for your first-time buyers: The Mortgage Protection Program has been extended through 2010.
To continue to provide first-time home buyers with peace of mind when purchasing their first home, the C.A.R. Housing Affordability Fund has extended the Mortgage Protection Program (MPP) through December 2010. To date, more than 1,700 first-time home buyers already have been approved for the program, and the numbers continue to increase.
On April 2, 2009 the Housing Affordability Fund launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage.
TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST:
· Be a first-time home buyer – someone who has not owned property in the last three years
· Open escrow on or after April 2, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
This is a great opportunity for first-time homebuyers.Contact me for more information or: Click here for more information, requirements, and a downloadable application.
~ Barry Ripp
Information obtained by the Calif.Assoc.of Realtors. November 2009
Maintaining a good credit score can help you in a number of financial situations. For example, most lenders use your FICO score to judge credit worthiness. FICO stands for Fair Isaac Corp. which analyzes credit information to come up with a score.
A good score can mean a lot when it comes to your interest rate for car loans and home loans.
One key to keeping a good credit score is a combination of continuing to use your credit responsibly and paying down balances as soon as you can. I think it’s better to pay your credit cards off each month to avoid paying the high interest. So don’t buy more than you can afford to pay off.
To make sure you don’t have any credit errors, check your own credit at least once a year. You can get a free report from each of the three credit reporting agencies.
For a free copy of your credit report from all three agencies, you can visit: www.annualcreditreport.com They will ask several questions to insure security and also ask you to pay for an upgraded report, but a free report is available.
I hope you find this information helpful. I feel we all need to be more careful about using credit. But credit can be a useful tool when we need it.
~ Barry
If you’re ready to buy a home, there are probably many questions on your mind. Let’s address a few right now.
1) When should I buy? Since we are pretty much at the bottom of this cycle, you should buy when you’re ready. And you should start getting ready right now. Get pre-approved and then talk to a Realtor about what’s for sale in your price range.
2) Should I buy a condo or house? Buy what you can afford. Condos offer some beneficial features (pool, etc) and they do appreciate, but many people prefer a house. You should see for yourself what’s in your price range and then decide.
I hope this helps with some of the many questions you may have. For more answers to your questions, please feel free to contact me directly. It will be my pleasure to serve you.
~ Barry
LOW INTEREST RATES:
Falling interest rates are fueling a rise in home mortgage applications and refinancings in the Inland region, though experts aren’t yet ready to declare the beleaguered local housing market on the road to full recovery.
PENDING SALES:
According to the National Association of Realtors’ housing affordability index, seven of the top eight most affordable months occurred during this year. Pending sales of existing homes rose for the sixth straight month in July, the association reported.
NEW HOME SALES:
Sales of new, single-family houses rose 9.6 percent in July compared with June, to a seasonally adjusted annual rate of 433,000 units, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development.
HOUSING MARKET LOOKS GREAT FOR BUYERS:
The combination of affordable home prices, historically low mortgage rates, and a first-time home buyer tax credit that’s set to expire soon, has created the perfect storm of sorts for buyers who’ve been sitting on the fence, waiting for the market to recover.
Real estate prices nationally have declined approximately 30 percent from their 2006 peak and are beginning to show signs of increases—an indicator that prices aren’t likely to go much lower, according to some housing analysts.
____
I will be happy to help you with any of your real estate needs. I look forward to working for you.
~ Barry Ripp
First-time homebuyers—those who have not owned a home for at least three years—may be eligible for the $8,000 federal tax credit, but the window of opportunity is closing rapidly. To qualify for the credit, the buyer must close escrow by midnight on Nov. 30, when the tax credit expires. Buyers hoping to take advantage of this benefit are advised to start house-hunting early, as the buying and lending processes takes time.
· Finding the right house can take some time, so REALTORS® recommend home buyers start looking for a home as soon as they are able and ready to purchase. Buyers also should build in extra time to accommodate the lending process, which is taking approximately two weeks longer to process this year compared with last year.
· The tax credit is equal to 10 percent of the purchase price, up to $8,000, subject to income limits. Single taxpayers are eligible if their modified adjusted gross income is $75,000 or less, while married taxpayers filing jointly must have a modified adjusted gross income of $150,000 or less.
· Only primary residences are eligible for the federal tax credit, including new or existing single-family homes, townhouses, condominiums, manufactured homes, custom homes, and houseboats. Vacation homes and investment properties do not qualify.
There are so many reasons to buy a house…especially in a down market. This tax credit is just one reason.
Contact me for more information and advantages of home ownership.
~ Barry
The above information was obtained from the Calif.Asso.of Realtors news on 8/20/09
