Friday, May 9, 2008

How to Find a Good Deal on a Home

As a Mission Viejo Realtor, I am often asked what is the best way to find a great deal on Mission Viejo homes in today's real estate market.

First we need to determine what type of buyer you are. Are you an investor looking for basic rental property in average condition, an investor/contractor looking for fixer upper Mission Viejo homes to renovate? Are you a first time buyer with only enough cash for a basic down payment? Are you "buying up," with enough cash from the sale of your current home to make the down payment and then do some remodeling after the sale? Or, are you looking for something move-in ready that won't involve costly upgrades and repairs. There are hundreds of buyer circumstances.

Sometimes people want to find homes selling for far below market value that need no updating or repairs. This would be a rare find indeed, and in most cases a bidding situation would develop where the price finally agreed upon would be higher than that bargain-basement listing price they were hoping for.

All-cash buyers with full proof of funds who are able to close escrow quickly with no loan contingency are able to snag the best deals. Most buyers do not fit into that category. Having liquid assets sufficient to pay cash for a home does not prevent you from getting a loan to purchase it, it just means that if you can't get the loan in time, you agree to use those assets to purchase it on the agreed upon closing date or you lose your earnest money deposit which would be at least 3% of the purchase price in this scenario.

The best way to find a great home is to communicate to your agent exactly what you want. First, get pre-approved for a loan amount that demonstrates your ability to buy. Next, decide on the basic area where you would like to live. Then, discuss with your Realtor the minimum size and the features you absolutely need in a home. It may be necessary to adjust your minimum criteria to match your ability to pay. This is something you can discuss with your agent and get recommendations on certain tracts and neighborhoods to consider.

A professional real estate salesperson will not take you window shopping for homes until you have provided proof of an ability to pay for a home. This comes in the form of a loan pre-approval or a financial statement that indicates you have cash available for the purchase. Once the financial component is complete, she will ask you a series of questions that will help her to filter out homes that you obviously will not be interested in. She will take an in-depth look at the inventory of homes that are available in you price range and locate ones that most closely match your criteria. She will search for the best values for homes in your price range, call the listing agents for additional information and check on what the recent sales prices have been in those areas. She will then provide detailed information on these homes, and set up a time to show them to you. By proving up front that you are a ready buyer, you can expect the highest level of service from your real estate agent.

It's a fact that short sales and foreclosures are having a downward effect on the pricing of the whole market. "Teaser Pricing" of short sales by some agents can create an inaccurate impression that homes are available for unbelievably low prices when actually they are not. This is where a buyer needs to rely on an experienced agent who can research what actual sales prices have been to determine whether a particular offer on a home is likely to be accepted or if it will sit on the lender's shelf for months, waiting for a better offer to come in. So often potential buyers say that they have seen homes shown on the internet are selling for extremely low prices and they want to pay even less. What they may not realize that today's listing prices are irrelevant to what actual sales prices are due to short sale teaser pricing.

Once a home is lender owned, the lender is more committed to selling. These "Bank owned" properties are normally sold as-is and without a warranty. Sometimes they are referred to as REOs, which stands for Real Estate Owned. If you want a home warranty, you most likely will have to purchase it yourself. Also, pre-existing conditions of the home are not likely to be covered by one of these one-year warranties..

Some bank owned properties are in pretty rough shape. Appliances may be inoperable, components may have been removed. The electricity and gas have typically been turned off, so it may be impossible to know what works and what doesn't work. The previous owner, angry because of their loss of money and credit, may have damaged the home in some unseen way. There are a lot of unknowns when buying a lender owned property.

With a short sale, the lender has not made a commitment to sell for any particular price. The listing price set by the agent can be far below what the lender is willing to accept. When any offers come in, the lender makes the final approval of the accepted offer. There is no deadline of how long the lender can take to make up its mind whether an offer is accepted or not, so the lender can stall indefinitely as it waits for higher offers to come in, even if the offer was the listing price. We have seen a lot of this.

I am not an advocate of teaser pricing of short sales. I price short sales based on what other exact match short sales have actually recently sold for. Of course, all offers are presented to the lender, no matter what price they come in at. But why would I want to trick some unsuspecting buyer into thinking he could buy the home for much less than the lender is likely to accept, tying up his or her ability to purchase another accurately priced home. Teaser pricing further deteriorates area property values which can result in more homeowners being "upside down on their home loans.

I have found that a home being sold as a regular sale may cost a little more, but the value in terms of condition, having a home warranty in place, upgrades already accomplished, and speed and certainty of the acceptance of an offer can far outweigh trying to buy a short sale for an unrealistic price. It is not uncommon for a buyer to spend time looking at short sales and then determine they would prefer buying a regular sale even if it might cost a little more.

Many people think they are going to get fabulous deals on foreclosures and short sales, but it is often not true. Those short sales advertised at extremely low prices may not really be available for those prices to the average buyer and they may be disasters that will cost a lot of money to make them livable.

If you want to find a good deals on Mission Viejo homes or homes in any area of Orange County, call me and we can set up a time to meet. When you come to my office, we will start the process by going over your loan pre-approval. If you need to get pre-approved, our loan division can take care of that for you right away. We will go over my buyer's agreement and my commitment to service and you can ask me any questions you might have about buying a home. I will ask you a series of questions to help me determine what kind of home meets your criteria. Once this groundwork is complete, I will be committed to working for you to find the very best deals on homes that match your criteria and price point. When we locate a home you want, I will negotiate the best possible price and terms.


I was recently asked by a repeat client what I thought was the best type of property to buy in South Orange County. I told her that, personally, I thought Single Family residences with large yards and/or a view are most likely to hold their value over time. I also told her to avoid homes with old pools that have not been cared for, that they can be problematic and expensive to maintain and repair. Buying a home with no HOA is fine if you want to save a little money, but don't let a small HOA fee deter you from buying a home. HOAs can be good value protectors in that they have the power to keep neighborhoods looking better, which helps maintain the property value. Even Mello Roos may not be as bad as some people suspect. Some Mello Roos fees are very low and others will soon be paid off. Others are very high and do have an effect on affordability and resale. Each property is different, so don't totally discount all homes with Mello Roos. Look at each one separately. If a home is 20 years old, the Mello Roos may be close to being paid off very soon. Mello Roos is a bond, and these bond payments don't last forever.

Important considerations when buying a home are:

1. Is the area nice and does it show neighborhood pride of ownership,
2. Does the home meet your basic needs,
3. Are you buying it for a good price,
4. Can you imagine living there for 4-5 years and being comfortable,
5. Does it have most of the features you want,
6. Is the condition good so you won't have to invest a lot of money in it. Replacing carpeting and flooring and repainting is expected, but it you have to do major work to get it up to the level of today's homes, it can cost a fortune. When people upgrade a home, they usually spend more than they get back, unless they have been very careful to only do the most cost-effective upgrades in the proper level for their community.

Buying a home in nice condition allows you to take advantage of all the money the previous owners have already spent and gives you a home you can enjoy immediately and for years to come.

For more information on buying homes, contact April Hay

http://www.socdreamhomes.com/
http://www.greatmissionviejohomes.com/

Thursday, April 24, 2008

Diet On the Cheap!


April Hay

http://www.greatmissionviejohomes.com/
http://www.socdreamhomes.com/

Some people who live in Mission Viejo homes have tried to go on costly weight management plans. Some have even resorted to gastric bypass surgery. Why is it that when it comes to weight loss we can't "Just Do it," as Nike would say. I think the reason is because once we start dieting, impatience sets in. We want to lose the weight immediately. Of course, that's not going to happen, but we can lose fairly quickly and do it for a minimal cost.

About 6 years ago, I went on a diet and lost 70 lb. It was great. I got new clothes and felt really proud of myself for what I had accomplished. Then, a few years ago a series of serious life challenges hit me broadside and ice cream, chips and cheesecake seemed like the only things that could ease my pain. The weight all came back and even increased. Seeing myself in the reflection of my office window recently, I began to cringe at what I was doing to myself.

The moment of reckoning came last month when after my vacation I came back to my Mission Viejo home, got on the scale, and found that my weight had hit an all-time high. I dug out my diet book and decided to take control of my eating, of my looks, of my life.

When you have had a long period of overeating, the first challenge is to condition yourself to eat a lot less. The next challenge is to condition yourself to give up all sugar and high fructose sweetener and excess fats and carbohydrates.

The diet that works for me is, I believe, the world's cheapest healthy diet. I use the Scarsdale Diet, a diet that was popular during the 1970s. The diet is described in an inexpensive paperback book available in a lot of bookstores or online. There are no exotic foods to purchase, no nutrition bars to buy. Everything in the diet is made up of good, easy to find foods.

A half a grapefruit is eaten every day for breakfast along with a piece of dry toasted high-protein bread. With a cup of coffee, somehow this is enough. I actually look forward to it every morning. Lunches are composed of plain but good foods. No processed, ready-made foods, no starches, no sugar. Fast foods are basically out.

There is a regimen to follow as far as what choices you have every Lunch and Dinner, but there are certain food that you can eat without a limit, such as radishes, onions, dill pickles, peppers. These foods really help in the early days of the diet before you get used to eating less.

Eliminating all alcohol is necessary during the reducing stage of the diet. Water, diet soda, coffee, and tea are allowed as drinks. Exercise is great, but I don't start exercising until I lose enough weight to know exercise will not damage my knees and back. I take it slow and easy, and as the weight drops, I increase my activity level. You can plan on losing about a pound every day or two at first. As you are able to increase the amount you exercise, the rate of loss may increase.

A side benefit of the diet is the elimination of heartburn and a reduction in blood pressure. Cholesterol levels also drop. Snoring decreases. There are a lot of good things that happen with the Scarsdale Diet. It was written by a heart doctor many years ago.

Being older this time, the weight is coming off a bit slower than it did the first time. I have been on the diet for 3 and a half weeks and have lost 20 lbs. But that's okay. I know it works and I can be a little more patient this time. I have not started exercising at all because I have knee problems and I don't want to injure myself. After I lose another 30 lbs, I will start to exercise. I look forward to walking my area of Mission Viejo homes, knocking on doors and talking to people about Mission Viejo real estate.

I have a few friends who have gone on the Scarsdale Diet, and all of those who follow it say they have benefited not only by the fabulous weight loss, but also by the improvement in their general health. It costs very little to get started, and actually ends up costing less than you would normally spend because you are eating fruits and vegetables and small portions of meat instead of a lot of expensive saucy, processed foods that are not good for you.

Sometimes people cannot eat the grapefruit because it interferes with the absorption of some medications they are taking. That is a problem for them, and they may not be able to use this diet. The morning grapefruit seems to be an integral part of the diet. Of course anyone going on any diet ought to talk it over with their physician before starting.

More and more, we hear on the news how overweight we are becoming as a nation. The increase in diabetes is frightening, as are the incidences of heart disease. For me, it was time to take my weight seriously. My skinny jeans are still waiting for me in the back of my closet and I have eight sizes to go. I can't wait to wear them again!

If you are planning to buy or sell your Mission Viejo homes, please visit my website:
http://www.greatmissionviejohomes.com/

Monday, April 14, 2008

Mission Viejo Homes Ranked as Best Buy!

April Hay
http://www.greatmissionviejohomes.com/

It has always been my belief that Mission Viejo Homes deliver the biggest bang for your housing bucks spent. A recent report by Entrepreneur.com seems to agree:

"Whether you're an investor ...or you're looking to purchase that next move up, here are my picks for the best areas to buy a home:

Killeen, Round Rock, Austin, Texas: Killeen has the lowest average home price in any market in the nation while still maintaining quality. Round Rock and Austin have seen incredible job growth and very stable home prices despite the downturn nationwide. Jobs continue to grow here--a factor for keeping inventory low and prices stable.

Mission Viejo, California: Mission Viejo has the lowest crime statistics in the nation. With no murders in 2007 and a low rate of violent crime, this is a good place to raise a family. Prices are relatively stable, and the job market in the nearby cities of Irvine and San Diego means there is consistent demand from job seekers.

Palm Beach, Florida: I'm taking a risk here because this area has been pummeled by foreclosures in 2007. But there are also a lot of boomers retiring, and Palm Beach is looking mighty attractive. If you don't like this high of a risk (which translates to great prices), check out Tampa or Clearwater in the same state.

Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside--a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it."

If you are planning to buy in South Orange County, Mission Viejo Homes tend to be a great choice. Other nearby areas, including all of the Saddleback Valley, also continue to have some of the best buys in real estate.

Contact me for information on Mission Viejo Homes or homes in any part of South Orange County and I will be glad to assist you in finding a great deal!

April Hay

Monday, April 7, 2008

Is Your Realtor Working For You?

April Hay
http://www.greatmissionviejohomes.com/

Doing open house yesterday at one of the Mission Viejo homes we have listed, it amazed me to hear many who attended say that they have agents whom they were "working with." One woman went so far as to say her agent had told her to go out and look at open houses! I looked at her in disbelief and commented that it seemed odd that she was actually working for her agent rather than vice versa. In my own business, I work for my clients, not the other way around. If they want to buy a home, I help them find one that matches their criteria.

The first step of determining a true business relationship with a real estate client is to find out if there is a means to doing business: financial qualification. If a person is able to qualify for a loan and has a sufficient down payment, they are ready to do business. At that point, my client becomes my top priority and I will do whatever it takes to help them find the perfect home. I provide them with information regarding the purchase. After a purchase price is negotiated, I complete every detail of the transaction afterward that will assure a smooth transition into their next home. If a qualified buyer is being told they should go out and find their own home via driving around to open houses, then I think the buyer should question--who is working for whom?

During these past two weekends, all of our agents have reported seeing more attendees at open houses for Mission Viejo homes than there has been in a long while. Most lookers seem interested in traditional sales rather than short sales or foreclosures and are willing to look at homes that are priced fairly.

One of the best ways I know to get a great overview of local real estate sales and pricing is to go to http://www.mlssnapshot.com/. Log yourself into the feature and you will receive an instant one page report that gives you a bounty of information on which homes are for sale, photo flyers on them, which homes have recently sold, what price they sold for, what the trend in sales prices is for that area. I own this service, so you can be assured that your email address will not be shared with anyone. The report is set to come every month; however, you can change the setting yourself to have it come more frequently if you choose. Those who get this report rave about it.

If you are considering buying a home, call me and I will work hard for you. I will help you find the home you have been dreaming of and will negotiate the best price and terms.

Contact April

http://www.greatmissionviejohomes.com/
http://www.socdreamhomes.com/

Saturday, April 5, 2008

4-Star Staging When Selling Mission Viejo Homes



April Hay
http://www.greatmissionviejohomes.com/
http://www.socdreamhomes.com/

Often I am asked what can be done to a home to make it sell quickly and for a better price. As we all know, home prices have dipped due to more short sales and foreclosures being on the market. If you want to sell your home, you must compete with those listings by having your home stand out in a very positive way.
Sparkling move-in condition may put Mission Viejo homes ahead of those foreclosures that are not nearly as pristine. Not all buyers want to paint and make repairs when they buy Mission Viejo homes; many are inspired to put in offers on homes that they can imagine moving into immediately. Some sellers make the mistake of thinking their collection of stuff is going to be appreciated by buyers. This in not usually the case. Personal items and knick-knacks are very distracting to buyers; they start wondering about the seller more than thinking about living there themselves. So what can you do to make your Mission Viejo home make the very best impression on the greatest number of buyers? There are several things you can do that can make a real difference.

The most common advice is to remove all knick-knacks, personal photos, excessive furniture, etc. This is great advice, and I completely agree with it, but I have found that most of us have a hard time discerning how much stuff is too much and what stuff if a turn-off to buyers. Often sellers benefit by a professional staging consultation to identify items that should be removed.

Try this mental excercise:
Imagine walking into a 4-star hotel suite and looking around. You would expect to see only the basics in the way of furniture, minimal yet tasteful decorations, impeccable cleanliness, no evidence of personal items or trash, beds made neatly, everything in its functional place. You know others have stayed in the room, but there is no obvious evidence of it. Imagine the suite has tasteful decor, only a few pictures on the wall, the curtains are clean and open, and there aren't any personal items of someone else sitting around. Take a deep breath and you expect that clean smell of fresh linen and fragrant cleaning solutions. You also expect the glasses (dishes) to be clean and put away, the kitchen sink clean, the bathroom to be spotless with the toilet lid down, sparkling sink, a clean shower curtain or door, and no wet towels hanging on the rod. You expect the walls to be clean and fairly recently painted. You don't expect to see fingerprints on doorways or by light switches. The closet doors are closed, and so we cannot see whether there are clothes in them.

Now see how close you can make your home match this image.

It's true, our Mission Viejo homes are not hotel suites and this may seem like an extreme staging goal. We all have normal lives with the need for normal personal items in our homes. Nonetheless, during the selling period, you will benefit greatly by making the sacrifice of trimming down your possessions, by moving them to storage, by packing them for the move, or by selling them or giving them away to charity. The 4-Star Hotel Suite image may be extremely difficult or impossible to achieve, but keep it in your mind as a do-your-best goal to attract the greatest number of buyers. Don't beat yourself up if you can't quite get the look, but aim for the uncluttered, ultra-neat-and-clean look for your home and buyers will be impressed and more willing to put in offers.

The three most important factors in getting a home sold are: Price, location, and condition. You may not be able to fully control the price or market value, and you can't control the location of your home, but you do have control over the showing condition which can affect the price and the length of time on the market.

Call April Hay for assistance in selling your home. If you mention this blog when you list your home, I will provide a free staging consultation by one of Orange County's top interior designers.

Sunday, March 30, 2008

College Road Trip Time

Call April Hay


http://www.greatmissionviejohomes.com/

http://www.socdreamhomes.com/


We've lived in one of two Mission Viejo homes for 25 years and have raised three wonderful boys here. Mikie is a senior at Mission Viejo High now, so we decided to make a college road trip up the coast of California to tour all the UC campuses where he had been accepted. We invited our oldest son, Steve, who was visiting from D.C., and his wife, Caren; our youngest son, Mark, also came with us. To transport all six of us, we rented a big black Chevy Suburban.


Mission Viejo to Sacramento was the first leg of our long road trip. Up the I-5, we munched on trail mix and apples for about 6 hours until we arrived at a nondescript two-star motel . Bad beds. The next day, we toured the UC Davis Campus and then drove to the charming little town of Davis where we ate fish and chips at a greasy little dive. The homes in the central part of town were not like Mission Viejo homes, they were older, some built in the 1920s with a Queen Anne influence. Other homes were boxy and had large flat roofs. On and off campus, thousands of bicycles were neatly parked by every building, as most students get to classes via bike. Davis was a nice place, despite the fact that a student had been arrested a few weeks earlier for building a pipe bomb in his dorm room. Only freshmen get housing, so he must have been a freshman. Kids do dumb things sometimes.

In the early evening, we continued our trek, finding another two-star in Berkeley. This one looked depressing from the outside--very grayed with freeway dust. However, the motel was doing some experimental remodeling in one of the rooms and offered that room to four of us. At my Mission Viejo home, I recently painted the downstairs light yellow, which I thought was a bit bright and daring. Well, this room really gave us a sample of the avant garde. Our room was bright turquoise with IKEA-like furnishings and imitation brown wood floors and a bright Orange shag rug between the beds. Above the two queen beds were two giant panel photographs that captured an image of the sign at Mel's Diner. The counter in the also-turquoise bathroom was a multi-level slab with an inlaid vinyl print of bright party colors. The bedspreads were turquoise and brown striped. The room had a very nice flat screen TV. Staying in this room was good in that everything was brand new and clean, and the bed was great. The decor was like nothing I've ever seen in Mission Viejo homes before, but it made me laugh, which was good.

Our tour of UC Berkeley was a real treat. The guide was smart and knowledgeable. The campus was phenomenal. I was in awe. This was the only school my son had not received a decision from yet, so I was hesitant to build up his hopes or show how impressed I was with it. I didn't want him to feel like we would be disappointed if he didn't get accepted. So we all kept our excitement under wraps. Mission Viejo homes in our area send the kids to Mission Viejo High School. The outstanding IB program and AP classes there really enabled my son to apply to good colleges. The high school was the main reason we chose the Mission Viejo homes that we did.

That afternoon we drove to San Francisco and did some very quick sightseeing before going to our aunts home in Sunnyvale for a Hungarian Dinner that she cooked for all of us. She is a very smart and very nice Hungarian woman who worked for Intel for many years It was a delicious dinner! We spent the night at a two-and-a-half star in Sunnyvale. The next day, we drove around UC. Santa Cruz. The rustic campus didn't quite suit us, so we skipped the tour and headed for Pismo Beach.

As we were driving up to the very nice Lighthouse Suites hotel in Pismo, Caren tapped me on the shoulder and handed me her I-phone. It had a message that Mikie had been accepted at Berkeley! We all cheered and decided to go out to dinner at a nice restaurant and share a bottle of Champagne. It was a happy evening.

The next day we drove to the beach and rented 4-wheel ATVs to ride on the sand dunes. This is a favorite family activity whenever we go to Pismo. We had a blast and spent a couple of hours zipping up and down the dunes. That night we had dinner at the Cracked Crab, another favorite place. They throw a whole bucket of crab and shrimp on the table and give you all sorts of implements to pry open the crabs. Yum!

The next day we headed back to our Mission Viejo home, a bit tired and sore from the ATVs, but happy nonetheless that we had not only seen some of the UC campuses, but that we had spent several days together with all three of our boys.

If you are interested in finding out more about buying Mission Viejo homes,
please call April Hay today.

http://www.greatmissionviejohomes.com/

Sunday, March 23, 2008

Why We Live in Mission Viejo

Call April Hay

http://www.greatmissionviejohomes.com/
http://www.socdreamhomes.com/

We have chosen Mission Viejo homes for various reasons. Some of us came here to live in one of the safest cities in the United States. Others of us chose to buy Mission Viejo homes because we liked the focus on family life in this area. Some moved to Mission Viejo homes in adult communities, such as Casta del Sol and Palmia, because we wanted the serenity of senior living. Some of us moved here because of the focus on sports, with this city producing many Olympic medalists in a variety of sports. Some moved to Mission Viejo homes to enjoy the luxury of the lake. Many of us continue to live here because the schools are excellent. We enjoy the absence of graffiti and the feeling of acceptance of the various ethnic groups.



If you are considering a move to Mission Viejo, contact me, April Hay. at ERA Pacific Meridian. I have lived in Mission Viejo for 25 years and am very familiar with this part of South Orange County. I can help you find Mission Viejo homes that exactly match your criteria in any of the many desirable areas of this great community.



Visit GreatMissionViejoHomes.com to begin your initial search. Once you find Mission Viejo homes your are interested in, give me a call and we can set up a time to meet and discuss how your can get pre-qualified for a purchase amount. We can look at homes to find the right one for you.