Hidden Costs In Your Real Estate Transaction

Use this little check list to help you spot some of the most common places where your costs can go up dramatically.  Little extras that pile on and can really add up.

 

We all want to save money! Sure we do. We probably know where the best priced gas is in town and how to shop for a discount airfare when going to visit the family but Real Estate can be very confusing.

Mobile Notary Fees: Your closing officer will cheerfully tell you that they can send someone to you to sign and notarize documents. Great! But guess who pays for this service - you! Your schedule may make it worth it but if you can stop by the title or escrow office you can potentially save $100-$250 dollars. The reason for the broad range is because if you are getting a loan there are more documents to sign and the price goes up.

Termite Company Repairs: In many areas small repairs that are commonly called wood rot are bid by the termite company. Everyone is busy, everyone wants to close the sale so the seller typically signs this document and pays 3-5 times the amount it would cost to have a fascia board or a post on the patio replaced. Often a handyman is enough to do these jobs. Please note; I am not talking an actual termite problem here. That would have to be treated properly by the termite company.

Escrow Fees: These can vary wildly. I have seen differences of $450 for the same transaction. As Realtors we have trusted partners that we refer you to. However, over time we can lose sight of what the fees are. Ask your Realtor to get three quotes for escrow services. If they want to use their preferred escrow provider ask them to match the best price.

Title Fees: In many states these charges are set by the state insurance commissioner and do not really vary. However, it would not hurt to get a quote and also look carefully for any surplus charge beyond the actual title policy fee. Buyers, if you are getting a loan you will have to buy what is called a lenders title policy for your lender this is in addition to the title policy on the home which the seller typically pays for. Be sure you get quotes on that. One note here, any discounted extended to one party must also be equally extended to the other party.

Broker Fees: Buyers and sellers need to be aware of add on charges from the brokerages involved in the transaction. More and more often I am seeing some brokerages are adding a fee on top of any commission they are getting. Typically called a transaction fee or a admin fee these are pure junk and if you insist I am sure they will get removed. If not you will have to decide if that brokers services are worth that extra fee to you.

Home Inspections:  A good home inspector can save you a fortune! I would simply ask your RealtorRead Our article on how to ask the best questions in your home inspection.

if they have several they recommend or just one. Ask what sort of report you will get and what the general fees in the area are. Currently in my area inspection fees, for essentially the same inspection can vary by $125. Some inspectors provide very detailed reports with heavy emphasis on photos others just a general overview with few pictures. Be sure you get the report you need for the type of property you are buying.

State Requirements: Many states have specific forms or reports they require to be part of a real estate transaction. Here in California there is a pack of Hazard reports the seller must provide the buyer. There are multiple companies that sell these reports and prices differ by as much $35 for the exact same reports.

Your general rule of thumb is to ask questions. Anytime you as a buyer or seller are asked to pay for something be sure that you know what it is, are okay with it and know what options are out there for you. Don't let the hidden costs in your Real Estate transaction get out of control.

For more information on Real Estate in Southern California Please visit our website at www.PSagent.com or call us anytime at 760-408-5300.

Simplified FHA Loan Mods Start Today

July 1 2013 a new simplified loan modification process starts for anyone with a Fannie Mae or Freddie Mac Loan. Simplified means that you do not have to go through the process of documenting your income and hardship situation.

First find out if that is you - go to this site and see if your loan is owned by Fannie or Freddie

Fannie Mae Look Up: www.knowyouroptions.com/loanlookup

Freddie Mac Look Up: www.freddiemac.com/mymortgage

Then call your loan servicer and ask for for the the new Streamlined Modification

To participate in this program you must be 90 days delinquent on your loan and you must be able to make the three monthly trial payments after which the loan will be permanently modified.

If you have questions on the short sale or loan modification process please call or email us today. More information can also be found on our website psagent.com

How Much Is MY Home Worth?

Find out with our 26 Point Max Home Value assessment...As a free service to you I will come to your home and complete my 26 point Maximum Home Value assessment. Just for letting me meet you and walk through your home I will leave you with a written report of what I think it will take to prepare your home for sale at the maximum current price.

You see, I work with so many buyers that, I can walk through any home and see it through the buyers eyes. I know what they will like and what will raise questions for them. Let me show you these things and you can have a more successful sale.

It will take about 30 minutes, depending on how many questions you have for me. No pressure no obligation - you receive free of charge the written plan to getting your home on the market and achieving top dollar in your sale.

How Do I Calculate How Much My Home is Worth?

The correct selling price of a home is the highest price that the market will bear. Many factors influence this price and those factors can change from month to month and year to year. It is important to talk with a Realtor who is actively working in your community to correctly determine the price of your home. Don't play guessing games with one of your largest assets. To assist you in determining the correct asking price we provide you with a comprehensive market analysis of comparable properties sold and offered for sale in your neighborhood. We educate you on the trends currently at play in the market and advise you on any special concerns in your area.

Simply email us, and we will provide you with a speedy response. There is no obligation, you have lots to gain and nothing to lose by contacting us soon.

Don't forget that knowing your homes current value is very

useful when it comes to insurance matters, tax issues and estate planning. With all the changes of the last five years it is time for you to take another look at this critical number.

Just one mundane example of this is the cost of installing a water heater. It has more than doubled to over $1200.  Just one example of the rising costs of replacement.

Keeping Your Home Will Get Easier For Some...

Effective July 1st 2013

New options coming for homeowners who want to stay in their homes and avoid Short sales or foreclosures. The key here is your loan must be a Fannie Mae or Freddie Mac backed loan.

Fannie and Freddie will begin implementing sweeping new loan modifications guidelines. Lenders and loan servicers will be required to send a "Streamlined Modification Solicitation Offer" to borrowers who are at least 90 days delinquent and meet the initiative’s eligibility requirements.

See if Freddie Mac Owns Your loan here.
See if Fannie Mae owns your loan here.

It differs from previous efforts: Borrowers will not be required to document their hardship or financial situation, but will be able to accept a “Streamlined Modification Offer” by simply making the trial period payments and agreeing to the terms of the mod.

There are some requirements, one is that you must be 3 months delinquent! I don't really like that but it is the way this program is set up

UPDATE:  

It is 2018 now and these rules have changed. There are many things that will be different. If you live in California please go to this website for more information about keeping your home out of Foreclosure.

FHA nixes popular reverse mortgage program |

The option to withdraw a large lump sum in a reverse mortgage is going away. Seniors will be restricted to a set payout based on a lower percentage of the appraised value of their home.

Often time seniors are delaying the inevitable in trying to stay in their home. However, each case is different and deserves to be considered on a case by case basis.

The one universal truth that must be known upfront is that this is a pricey mortgage product. You need to carefully assess your need for cash and the need for the house prior to selling or taking out one of these mortgage products.

For more information read the article below or contact us. We would be happy to have a conversation about your needs - no strings attached. Just call Michael at 760-408-5300 or Marcia at 760-861-5643 and we will set up a time to visit with you.

FHA nixes popular reverse mortgage program |.

Interest Rates Lower Than Ever

[caption id="attachment_2256" align="aligncenter" width="170"] History Of Interest Rates[/caption]

With Shopping for good deals being the focus of the day I thought it was pertinent to bring up our historic low interest rates. Sure we have heard for some time now that interest rates are low, however, It is one thing to hear it but to see this chart it really brings it home.

The best way to take advantage of these great rates is to be pre-qualified with a a good lender. If you need a recommendation don't hesitate to call us at 760-408-5300 or visit our home loan page on our web site.

This Month In Real Estate

This Month In Real Estate

This months report covers first time buyers wants and needs. What motivates them to buy rather than rent. The major driving force now is the staggeringly low 4.1% average mortgage interest rate.

Help For California Home Owners

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This site offers clear programs that can help some California home owners stay in their homes or ease the transition of getting out of it.

Well worth a look and

PLEASE NOTE

this is a totally free service. If you are asked for money or payment you have gone to the wrong site. Recheck the link. As always if you have questions give us a call at 760-408-5300. We will help you for free as well!

The main website this video came from:

http://www.keepyourhomecalifornia.org

Why Helping Underwater Mortgage Holders Is Big Deal

RELIEF FOR SOME:

This week the administration came up with a new plan.  Their intention is to help people who are currently living with a mortgage on a home that is worth less than the face value of the loan, get a lower payment. For those who don't follow home lending very closely, the problem right now is that if you owe say $150,000 on your home and it is only worth $120,000 then you are shut out of refinancing to take advantage of the historic low interest rates.

Right away I started hearing negative comments that this would "help as few as 250,000 homeowners" but certainly no" more than 1 million."  That this just was "not enough" and would "never help the economy to the extent that it needs to be helped."  And on and on and on.

First I would like to say ....come on people,  just stop it! The negativity is not helping and since when is helping up to  1,000,000 people stay in their homes NOT a good idea? I bet it is going to feel like a real good idea to those people. I bet the banks will appreciate having up to 1,000,000 loans no longer at risk of default. Most of all I think we should note that there are several very fair parts of this proposal.  First, homeowners have to be current on their mortgage. No one can say that bad behavior is being rewarded. Secondly, no one is getting any principle reduction it is just a rate reduction. The program will simply help get around some rules about loan to value ratios that where set in place in different economic times.

Personally I think the administration should be given some credit for coming up with a proposal that is pretty positive. It is not a giveaway - it will not be another program to throw money at. It is an adjustment of terms that will create a relief valve for hundreds of thousands of homeowners in a troubled economy. Sure there is more to do but this is a pretty reasonable step in the right direction.

THE DIRTY TRUTH:

As a full time Real Estate agent I can tell you very clearly what I see. It is very easy to paint one big picture of struggling homeowners as either deadbeats who won't pay their bills or unfortunate scenarios of health issues and job losses. But there is a big middle ground full of people that do not fall into either category. Every week I sit with people who are on the edge. They see homes just like theirs selling for $100,000 less than they paid. They have huge financial pressures on them.  They are struggling with pay cuts, layoffs, increased work loads and rising health care costs. It may not seem "responsible" but I have to tell you these people are seriously contemplating walking from their mortgages.

Sure they can make the mortgage this month and perhaps next month but they are on edge. There is a temptation to go that route. They feel so close to the breaking point they are actively considering it ..they are thinking "it wouldn't be so bad to have to rent for awhile" These people are your friends and neighbors. The receptionist at the insurance office, the retail store clerk, the cable TV installer, the retired couple next door who sees their nest egg dwindling much faster than they ever imagined it would. We can insist that what they are thinking about doing is not right - not fair - but IT IS REALITY.

THE REALLY BIG DEAL:

This is why the current proposal is such a big deal. By preventing the "on edge" section of the population avoid this choice there is a much larger ripple effect. Preventative rather than reactive. By putting several hundreds dollars a month back into household budgets, with a policy change not a giveaway, we are taking a step towards housing market stability that is much bigger than people may realize.

Canadian Citizens- US Loans For You Available Again!

Good news for Canadian buyers of US real estate. Our good friends at Pacific Premier bank are once again able to offer home loans for 2nd home purchases in the USA.

Download the flyer

The details of this offer are as follows:

5 year fixed at 4.65% with no points to be paid. Adjustable yearly after that.
There is also a 7 year fixed option at 4.875% with no points to paid.

Downpayment requirements:

35% down payment for Single family homes
45% down payment for Condos

For more information please call Leah Verigan at Pacific Premier Bank
760-969-4557 or  LVerigan@ppbi.com

GOT Prequalified or Preapproved? Know the difference!

[youtube http://www.youtube.com/watch?v=hwOaWNVv0gY&version=3&hl=en_US&rel=0]

This month in Real Estate our video explains the importance of being PRE- APPROVED vs. PRE - Qualified before you go out shopping for your new home.   The work you do up front to get this done will ensure that when you find the house you really want you are prepared and in the best place to make sure you get it!

A good lender can make all the difference in your transaction.  Ask your agent for recommendations and tips on what questions to ask to make sure that the choice you make is best for you and your situation. You can also stop by our mortgage information page on our website PSagent.com

Is the Government Looking to End Secured Mortgages?

According to a new policy paper the Obama Administration submitted to the Treasury Department just last week the answer may be yes.  Looking to privatize this and relieve the government - ie: taxpayer liability for mortgages gone bad.

Government back loans through Fannie Mae and Freddie Mac have long been a staple of the US real estate market and have helped many a homeowner get their first home.  To be sure the two were also closely tied to some of the worst abuses in the mortgage melt down of the last 5 years.

No matter which side of the issue you are on this is a BIG change in business as usual in the government back loan business.  Read the entire document outlining the administrations proposals.