When working with buyers and sellers, one common question we get is, "How do energy efficient items affect my home value?" Add a solar electrical system. You can buy or lease a solar system. If you do lease the solar system, the appraiser cannot get any value for the system on the appraisal report because the system is considered personal property. However, there will be a UCC filing on the title report if you choose to sell your home or refinance it. If you choose to sell the home, the solar system lease will have to be transferred or paid off. Before you lease a solar system, see how the solar company handles home sales so you know what to expect if you sell down the line.
There's also a program called the Home Energy Renovation Opportunity. This program has over 900 energy items you can add to your home. These items will be added to your property taxes and paid through the tax bill. Again, if you plan to sell your home, it's important to pay attention to the cost of these items. Some can be transferred through the sale, and some may need to be paid off at the time of the sale. Hopefully, this answered a few basic questions about energy efficient items and home value. If you have further questions, give us a call or send us an email. We look forward to hearing from you!
Today, I want to share contract timeline guidelines to help de-mystify the process a bit. It all starts with an offer and the acceptance of that offer by the seller. The clock then begins ticking, and the buyer then has three days to get the deposit check in. Typically, the verification of down payment and the pre-qualification letter is provided with the offer, but if it isn't, the buyer has three days to get those things to the seller as well. The seller then has seven days to get all the disclosures to the buyer. These include the Seller Property Questionnaire and Transfer Disclosure, among others. Next, the buyer has 17 days after the accepted contract to have their appraisal done, their home inspection, and review all the disclosures provided by the seller. The seller cannot cancel during this contract period, but the buyer can cancel the contract and get their deposit back within the contingency periods.
Twenty-one days after acceptance comes the removal of the loan contingency. If everything goes smoothly, the buyer has five days prior to the close of escrow to verify the property's condition and to see if any repairs have been completed. If everything is done and ready to go, we go to close of escrow and the property is finally sold! Something critical to keep in mind is the rights of the buyer, which in my opinion outnumber those of the seller. The buyer can cancel during this period, but the seller cannot cancel unless the buyer does not perform! I hope this gives you a bit more clarity regarding the contract timeframes. If you are looking to buy or sell a home, or if know someone who is, please don't hesitate to give us a call. We would love to hear from you!
Today, I’ll discuss the importance of the pre-approval process. The pre-approval process is imperative and essential to be completed prior to you making any offers. The listing agent and seller typically require a pre-approval letter to accompany your offer with the Realtor you work with. This process can happen a couple of different ways. The preferred methods are to either do this in person or over the phone. You can also go to my website and fill an application there. I typically conduct a follow-up call after you submit an application.
Ultimately, we need to ask you all the necessary questions. Depending on your answers, we can ask follow-up questions. By the end of the conversation, we will have a great loan profile for you. This allows us to email you a list of required documents. We want a smooth escrow process. There’s nothing worse as a home buyer to be running around at the last minute. We do all this work upfront. We can discuss rates and programs. We want to educate you at the end of the first conversation. We want to help you make the best decision for your situation. We look forward to assisting you with your finance needs!
Today, we'll discuss common websites that buyers go to when looking for homes that are available for sale. Many buyers begin their home search process on sites such as Zillow, Trulia, and Realtor.com. While these sites may be a good starting point, they don't really give you all the information that you need to know. You need to know whether the home is a short sale or a standard sale, or other important information, such as whether the seller needs to buy a home before you can close on escrow.
While the Web is a great place to start, I highly recommend contacting a professional real estate agent. You will get all the information you need and save you time and energy. A real estate agent will make sure that your purchase transaction closes in a timely manner. If you have any questions, please give me a call or send me an email. I would be happy to help you!
Today we are very excited to introduce you to Tommy Barro, and our preferred lenders here at First Centennial Mortgage in Irvine, California. They have been our preferred lender for the last several years. We’ve worked with them because they provide excellent service, great interest rates, and constant communication to buyers, sellers, Realtors, and escrow companies to ensure on-time closings and efficient processes.
First Centennial Mortgage is a direct, regional mortgage banking company that has been given the “Lend Right Company” designation by both the CFPD and Forbes magazine. These designations are only given out to the top mortgage banking institutions in the country. Tommy and his associates take pride in this designation, and give credit to their talented loan officers, great operations staff, and their platform, which allows them to offer the lowest interest rates in the industry, and a team that ensures on-time closings and great communication. If you have any financing needs, whether it be a home loan or a refinance, give Tommy and his team a call. They are the best option for you, no matter what type of mortgage you need.
Today, we'll discuss the differences between a home warranty, home insurance, and a home inspection. The home warranty covers items such as the appliances, the water heater, and heating and air conditioning systems. This is different than most home insurance policies, which would cover you for a fire or, depending on your area, flooding. Home inspections come during your inspection period, usually within the first 17 days of the contract period. A home inspector looks over the home to determine the quality and condition of certain components of the home. It is not an insurance policy; this just gives you a clear idea of the condition of the home.
When getting a warranty, be aware that different home warranties cover different things. For example, if you get a warranty for the pool on the property, that would typically only cover items above the ground, such as the heater and the pump. It would not cover any cracks or leaks that develop in the pool. So when selecting a warranty, really read through it and see what is covered. When you get a home inspection, make sure you have a certified home inspector. There is no license for home inspectors in California, but you can at least get someone who is certified. I hope this clears up any confusion for you. If you have further questions, please do not hesitate to reach out to me. I would be happy to help you!
Today, we'll discuss current market conditions. A lot of people have been asking, "Is today's market a buyer's or seller's market?" The answer really depends on what price range you're looking in. For homes below $417,000, the market is a seller's market with a strong demand for homes. For homes priced $700,000 and up, it is more of a buyer's market. That's due to the difficulties of obtaining financing in that particular price range. Mortgage rates are very good right now, ranging between 3.75% to 4% for a 30-year fixed loan. Overall, market values have increased by about 10% year-over-year for this particular month.
But where are they going from here? It is expected that the Fed will increase interest rates by about a quarter of a percent. That is a small amount, and should not have a significant impact on the overall values of homes. Overall, it's a good time to buy. If you have any more questions, give me a call or send me an email. I look forward to hearing from you!
