Residential Marketing Solutions

Why School District Matters When Buying a Home

Why School District Matters When Buying a Home

There are many things to consider when buying a new home. This is especially true for first-time home buyers and families. Although it’s important to make sure your new home has plenty of room for all members of your family, nothing is quite as important as location. After all, you can never move the location of your new home and this has a major impact on your life; including where you work and where children go to school.

Homebuyers Look At Schools When Deciding Where to Buy

According to a recent study by Realtor.com, 73 percent of home buyers listed good school boundaries as an important factor when deciding where to buy. Even home buyers without children should consider schools when choosing a new home. Why?

People often equate good schools with good neighborhoods. As a result, homes located by higher rated schools tend to hold their value better, even during economic downturns. This is important if you even need to resell your home.

Although it’s important that parents look at all schools in the area, you should not limit that to just public school districts. Communities with lower rated school districts often have charter school options that buyers should consider. More than three million American children attend charter schools. These schools offer high-quality education even in neighborhoods where public schools have failed.

Education Provides the Foundation for a Happy Life

Prospective home buyers should research all available options before deciding on a home because a good education is one of the greatest gifts a parent can give their child In addition to quality teachers and a variety of available educational programs, good schools maintain a high level of communication with parents and caregivers.

Children with an excellent education and support system become more confident in their ability to succeed. They learn important values, morals, and different ways to solve problems. This can benefit them in all areas of their life.

Now is the Time to Buy!

Homebuyers wishing to enroll their children in a new school district need to act soon. The buying process takes time, and houses are selling extremely fast. Now is the time to act if you want your children to start the 2020-2021 school year in a new school.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers.

No, It’s Not the Same As 2009

No, It’s Not the Same As 2009

There’s a saying that the difference between wisdom and knowledge is that knowledge is knowing that the tomato is a fruit and wisdom is not putting it in a fruit salad. An interesting visual of the practical application of wisdom.

With the Covid-19 pandemic in full force in the United States, a younger colleague asked me if it was like this in 2009. My quick response was “No! It was a slower burn in 2009 and today what we are experiencing is more like hitting a wall”. Reflecting on that later, here are three factors that keep my answer the same:

Fear

Everyone will be touched by Covid-19 in one way or another. Some may catch this virus and battle it from a hospital bed. Others may become paralyzed emotionally by the news. Some will see their income negatively affected or the anticipation of that. But this fear will eventually change once this virus is controlled. In 2009, the fear was different, it was really based on the uncertainty of the financial markets but it was the events leading up to that time that created a false market and eventual crash. For those of you in real estate or finance at that time, you know exactly what I mean,. There were transactions closing with no verification loans, income off the application; loans with zero money down which made no sense. Prices were escalating too fast, sometimes mid-phase or within the same week. But since that era, financial overhaul has stabilized our markets and insured that people have substantial qualifications and/or large down payments to insure that the “strategic defaults” would be reduced. Statistically in 2007 there were 8.2 months of inventory to sell and today there is 3.1 months.

Hope

This is not a political statement but I do believe that our leaders have the right mindset that will work towards a faster recovery to this pandemic. Why? To start, the economic stimulus was fast and will provide immediate relief. The delay of the payment of Federal taxes is a second reason; this alone has relieved households nationwide of an April 15th deadline. Many were wondering how they would make that payment if their income was affected. China is back at work, which will open up supply lines on many necessary parts and goods the US depends on. It’s also important to keep in mind that housing construction has not stopped. The financial markets will recover; it may take some time, but they always do. Interest rates are still very low, we just need time for take out lenders to stabilize funding. That adjustment will happen and the housing market will continue to be stimulated. Many families will decide they need a different or larger home, a new lifestyle with more walk-ability and let’s not forget all the babies to be born in 9 months!

Technology

Every sector has advanced since 2009 in this arena; many companies (mine included) were already virtual from that downturn, as they saw no need to spend revenue on brick & mortar offices. Between Microsoft Meetings, Facetime, Zoom, all platforms of virtual meetings, Docusign, Dropbox; you name it, there will be less down time in productivity across the board. The only groups left behind are those that never embraced technology and like the dinosaurs, their time has passed.

Let’s look at this as more of a pause rather than a downturn. A great time to connect with our partners and vendors, a time to be flexible and show creativity in our business. Spending more time with our families is a good thing. Once our shelter in place orders are lifted, I believe we will see an increase in kindness and compassion…there is no virus that can stop those qualities!

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

 

 

 

Tips for First Time Home Buyers

Tips for First Time Home Buyers

Most people dream of buying their first home. Until recently, many waited until later in life to make this important purchase. Today, younger adults are purchasing homes at an extremely high rate. In fact, Zillow recently reported that more millennials will buy homes in 2020 than Baby Boomers and Generation X combined.

Regardless of age, buying a new home can feel overwhelming. This is especially true in Southern California where median home price sits around $549,000 and new homes sell in as little as three weeks or less. In this competitive real estate market, it’s important that new homebuyers take care not to make an impulsive decision that hurts their long-term financial goals.

Prepare for the Unexpected

Even if your rent is less expensive than what your monthly mortgage payment will be, it’s important to remember that when you buy a home you are responsible for the upkeep and maintenance of your new home. Before purchasing a home, it’s important to pay off as much debt as possible and build an emergency fund for unexpected maintenance and repairs.  Most lenders require two months of payment reserves before they will finance a mortgage.

Determine How Much House You Can Afford

Depending on the type of mortgage you can qualify for, the monthly housing cost (including HOA fees, insurance, and taxes) shouldn’t be any more that 35% of your take home pay. For example, if you make $10,000 per month, your housing costs shouldn’t exceed $3,500 per month.

It’s important to remember that property tax rates and home insurance premiums can vary. A reputable mortgage lender can help you determine how much house you can afford based on local rates and online sources can help you understand payment calculations and interest rates, like bankrate.com.

Down Payment: How Much Will You Need to Save?

Some homebuyers can use their ex-military/Veteran (VA) status to qualify for a zero down mortgage but most homebuyers are not that fortunate.  If the home you are considering can qualify for an FHA loan, then you will need to come up with 3% of the price in down payment plus closing costs. All FHA loans require mortgage insurance which is factored into the loan qualifications, but they also allow for higher debt to income ratios to qualify.

If financing conventional, down payments start at 5% down depending on qualifying.   Some conventional loans will increase the interest rate to include the Private Mortgage Insurance (PMI) which is typically required for conventional loans less than 20% down.

Many millennials are staying home longer to save the additional down payment to own, even others ask your friends and family for help.

Save for Closing Costs

Closing costs are due at the time of sale and typically cost between 1% and 2% of the purchase price of a home.  Many times, the Seller will help a home buyer by offering a closing cost credit or the mortgage lender will offer a no fee loan.

Remember that rent will always increase but once you own a home, the payment if fixed and you are increasing your wealth with both tax deductions and equity.   It’s alright to put your retirement savings on hold for a short period while you save to purchase a home.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

 

New Year, New House – Here’s Everything You Need to Know About 2020 Real Estate Trends

New Year, New House – Here’s Everything You Need to Know About 2020 Real Estate Trends

With 2019 in the books, both buyers and sellers are looking toward 2020. This is the time of year when real estate experts begin making predictions of upcoming real estate trends. In order to make these predictions, they must first consider the previous year and its effects on the housing market.

Last year, early forecasts predicted that mortgage lenders would struggle throughout the year amongst rising interest rates. In retrospect, 2019 was the opposite with an unexpected downward trend in interest rates.  This created a desirable environment for future home buyers; which caused an increase in home sales throughout much of the year. Refinances have also risen in 2019, as homeowners have taken the opportunity to capture lower interest rates. This has been good news for mortgage lenders, sellers, and buyers, and the real estate market has seen homes in Southern California selling in as little as three weeks of hitting the market.

Although we’ll probably see a few new housing trends emerge this year, we expect many of 2019’s trends to continue into 2020. Increased competition, home technology, and low housing inventory will most likely drive real estate trends throughout much of the year.

Increased Competition

Although low mortgage rates started to revitalize the market last summer, we aren’t expected to see the full impact until next year. Thanks to rising education and low unemployment rates, more people will have the opportunity to buy in the coming year. As more people make the decision to buy, buyers will have less housing inventory to choose from, increasing demand and competition in the housing market throughout much of 2020. Some predictions include the return of bidding wars next year. The supply and demand balance will stabilize by the end of next year, as more homeowners and builders make the decision to sell.

Reduced Recession Risk

Thanks to increased spending, recent data suggests that a U.S. recession is less likely in 2020. As it stands, the chance of a recession is roughly 1 in 4 according to Daryl Fairweather, Chief Economist at RedFin (SOURCE). In order to keep this number low, it’s important that consumers continue spending throughout the year.

Smart Home Technologies

With new technologies emerging almost every day, it’s a fair assumption that technology will continue as a top deciding factor when choosing a home in 2020. Smart technologies such as smart lighting, smart thermostats, and smart security systems use predictive analysis and AI to learn patterns and recognize potential problems. Users can easily control and monitor these devices from any location in the world from a smart phone, tablet, or computer.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

Coming up With a Down Payment

Coming up With a Down Payment

Despite rising home prices, homes across the United States are selling extremely fast, many within three weeks of hitting the market. Combine this with the fact that most homes sell for close to 99% of their asking price, and it’s clear why an increasing number of homeowners are making the decision to sell.

This creates a challenge for first time home buyers who often struggle to come up with a sizeable down payment. Most mortgage lenders require a down payment of at least 3%. This totals $15,000 on a $500,000 home. While current homeowners can sell their existing property and use the equity as a down payment, first time buyers simply do not have this option. They must come up with the money for a down payment on their own.

Many would-be homeowners are becoming more creative to save for their down payment. Some are reducing their living expenses, or temporarily supplementing their income to regularly contribute to savings.  These temporary changes make owning a home a reality.

There are several traditional as well as non-traditional ways to come up with a down payment. First time home buyers should explore their options.

Gifts from Friends and Family

It’s not uncommon for young couples and families to ask friends and family to contribute to their down payment. This benefits both the recipient and the giver. In addition to feeling great about helping someone purchase their first home, the giver may also get a tax write-off depending on the amount of money given. It’s important to note that the IRS only allows individuals to gift up to a certain amount before the recipient must pay taxes. The actual gift amount can change at any time so it’s important to check with the IRS prior to accepting any cash gifts. Please visit https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes) for more information.

Forgo the Expensive Wedding

Many young couples are making the bold decision to forgo the costly $100-150K wedding bash in order to utilize those funds towards a down payment. Many elect to have a modest wedding and their families help them with the goal of home ownership.    In some cases, they will set up a GoFundMe account in lieu of gifts so their entire social circle can be part of the process.  With help from friends and family, first time home buyers can often make a larger down payment, making it possible to keep their mortgage payments closer to rent.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

Moving With Pets – How to Ensure a Smooth Transition

Moving With Pets – How to Ensure a Smooth Transition

Most people consider purchasing a new home one of the biggest and most exciting decisions of their life. While the idea of living in a new home probably brings you great joy, getting to that point isn’t always that easy. Moving can be stressful for everyone in your family, especially your pets. It’s important to consider this as you plan your move.

The following tips can help ensure a smooth transition for both you and your pet.

Take Your Time Packing

Many people don’t consider the amount of time and effort that goes into packing. While it’s normal to accumulate a lot of stuff in your home, you’ll need to spend some time deciding what to pack and what to throw away. This can be stressful if you wait until the last minute. Your pet will pick up on your stress, making them anxious as well. Packing over time reduces the amount of stress you and your pet will experience.

Taking your time to pack also reduces the amount of change your pet will notice. This is important, as pets tend to like things the way they are. A sudden change can cause your pet distress.

Talk To Your Veterinarian

Your veterinarian can provide you with valuable advice about moving with your pet. In addition to providing you with a recommendation for a new vet, they can also help make sure your pet meets all vaccination requirements for the area you’re moving to. If your pet suffers from anxiety, your vet can even prescribe medication for them to take during the move.

 Update Your Pet’s Identification

Pets can become lost easily in a new neighborhood. It’s important to make sure they find their way back home. Update your pet’s tags prior to your move and make sure your pet cannot slip out of their collar. Take a picture of your pet before the move just in case you need a recent photo later.

Research Laws and Regulations

Many people don’t realize that different areas have different laws and regulations for pets. It’s important to research the laws and make sure you’re compliant before you move. Depending on where you move, you might have to register your pet, pay a fee, and/or have them vaccinated.

Prepare Your New Home

If possible, prepare your new home before your pet arrives. Make sure there are no holes in the fence or other areas your pet might escape. Have their food, water, and other belongings setup and ready for them.

Start Small

It’s a good idea to start small when introducing your pet to their new home. Consider letting them explore a single bedroom before allowing them into the rest of the house. This is especially important for cats who are often more comfortable in smaller spaces.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

Market Outlook 2020

Market Outlook 2020

So far, 2019 has been an excellent year for both homebuyers and real-estate investors in the U.S. Throughout the year, home prices have risen steadily and mortgage rates have fallen to unexpected lows. The nation’s strong economy and robust job market have made it possible for an increasing number of individuals and families to purchase new homes and investment properties this year. This has left many wondering whether the 2020 housing market will continue to see rising home prices and an increasing number of sales.

Home Prices Expected to Rise at a Slower Rate in 2020

Home prices have risen dramatically over the past few years. The fact that rising home prices have exceeded wage growth in the U.S. has created an affordability problem for homebuyers. Leading housing analysts agree that 2020 will continue to see rising home prices, but at a much slower rate. It is believed that this will give wage growth the opportunity to catch up, easing several of the problems potential homebuyers have experienced over recent years. This is excellent news for sellers, buyers, investors, and the economy as a whole.

It’s important to note that these predictions refer to the entire U.S. housing market. Of course, housing market predictions can vary significantly by region. While some areas of the country will continue to see home prices rise through much of 2020, others will experience slowed or flat pricing.

Southern California Home Prices Slow While Rental Prices Rise

In Orange County, Zillow predicts that home prices will only rise about $1000 by next summer. However, despite lower mortgage rates and steady home prices, it’s estimated that Southern California rental prices will rise again next year. This makes 2020 an excellent time for savvy buyers to purchase investment properties. Another consideration if for renters; owning  a home fixes your monthly payment, with rents increasing, 2020 may be the best time to consider purchasing a home.

In San Diego, price growth has slowed and inventory of available homes has increased, suggesting the market is shifting in favor of buyers. Zillow predicts that home prices will continue to level off in San Diego throughout 2020.

Although no one can accurately predict the future of the U.S. housing market, it is possible to make predictions based on intensive research and a thorough understanding of the real estate market. Please keep in mind that these predictions are simply educated guesses based on current market trends and conditions, which can change over time.

Professional Real Estate Sales and Marketing Services

Strategic Sales and Marketing offers real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

New vs. Used Home – Which is Better?

New vs. Used Home – Which is Better?

Purchasing a home is one of the biggest decisions of your life. While location and size are both important factors to consider, it’s also important to think about what type of home is better for your lifestyle.  Here are some factors to consider:

Advantages of Purchasing a New Home

  1. New Construction:

New homes are built to today’s stringent construction standards, which have changed dramatically over the past 15 years.  They are clean, move-in ready, making them the ideal choice if you want to begin enjoying your move right away or leave your current home quickly.

  1. Warranty and Maintenance costs:

In every case, a new home comes with a one year fit & finish warranty and a 10-year structural warranty.  This protects homebuyers from faulty workmanship, but it also translates into less cost and maintenance. For example, a new heating and air systems on a used home averages $20,000 depending on square footage.  This would be an out of pocket expense for a used home owner.

  1. Modern design and technology:

Built with the needs of how people live today, new homes have minimal wasted space, like huge entry ways (where no one spends time) and state-of-the-art technology.  New homes are wired for today’s internet users and smart appliances, security systems and video doorbells.  In real estate, dead spots for internet can hurt a resale home value or the owner will need to invest in updated wiring to make it compatible with technology.

  1. Lower utility bills:

In addition, new homes have higher efficiency appliances and include more green features. In addition to simplifying temperature and lighting control, green technology reduces utility costs, makes homes more energy-efficient, and provides valuable tax incentives.

Purchasing a Used Home

  1. Lower Price:

Occasionally, a used home can be less in price than purchasing a new home. However, there might be existing problems that aren’t easily spotted at the time of purchase. It’s important to consider this factor when deciding on your purchase.

 

  1. Higher Utility Costs and Maintenance:

Depending on the age of the home, it’s unlikely that used homes will have the same features or amenities as a newer home. Most used homes do not have smart technology or energy-efficient features. These homes can end up costing homeowners a lot of extra money on utility bills and security. Although the used home may come with a privately purchased one year warranty, the fine print proves that collecting on those warranties is very difficult, there are many exclusions and there is a high deductible to be met. So, repair costs are many times out of pocket for you as the new owner.

  1. Financing

Many homebuyers run into problems when trying to finance an existing home due to low appraisals or unpermitted improvements. Unfortunately, many home owners cut corners or don’t realize that they must obtain the proper permits and follow certain rules to complete tasks and upgrades. This can cause a major headache for future buyers.

Real Estate Sales and Marketing Services

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

Southern California Home Prices Drop for the First Time in Nine Years

Southern California Home Prices Drop for the First Time in Nine Years

Over the past few years, the combination of supply and demand issues have had a significant impact on home prices throughout Southern California.  In fact, the median home price has risen steadily since 2012. This may change in coming months according to a CoreLogic report released in April.

CoreLogic’s data found the median home price in Southern California dropped 0.1% in March 2019 from the previous year. Southern California home prices currently sit $18,500 less than what they were during the last June’s peak. While this doesn’t sound like much, this price dip may indicate a sustained decline in coming months.

But it is important to note that the recent decrease doesn’t apply to all areas of Southern California. Although gains were smaller than in the past, home prices in Los Angeles County, San Diego County, and the Inland Empire grew over the past year. The median home price only dropped in Orange County, which has some of the highest home prices in Southern California.  While Orange County home prices might continue to dip slightly over the next few months, it isn’t likely this trend will last.

Healthy Housing Market in Southern California

Low mortgage rates and a solid economy have made buying a home or investment property more attainable for potential home buyers. As a result, we are still experiencing steady sales.

Although luxury homes are sitting longer on the market, homes under $750,000 are selling fast. To attract buyers, some sellers have begun adjusted prices or increased concessions to make a sale. According to Zillow, 15.5% of listings in Los Angeles and Orange County experienced price cuts in March. Only 11.6% of available Orange County homes experienced price cuts in March of last year. In the Inland Empire, 15.9% of sellers reduced their asking prices in March, compared to 13.6% last year.

This is the trend we are watching closely.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

Smart Homes – Understanding Your Options

Smart Homes – Understanding Your Options

Technology is changing daily.  From cell phones, vacuums to watches, an increasing number of devices are connecting to the Internet. In our homes, “smart” devices are used to increase comfort and security while simplifying maintenance and control.

Homebuyers today have several options to consider when it comes to smart technology. While these options may seem confusing, their availability isn’t likely to change and more products will be added to increase smart technology.  In fact, current statistics show the smart home market will reach 40 billion USD in the U.S. by the year 2020.

Although the list of potential options continues to grow, there are a few things homebuyers should look for when shopping for a new home.

Smart Lighting

One of the older technologies, smart lighting systems have been shown to increase safety and security, improve mood, and save homeowners a significant amount of money on electric bills. Smart lighting systems are easy to use and provide instant benefits. A lighting control system is a direct retrofit, meaning no additional wiring is required.

Smart Thermostat

Heating and cooling account for almost half of a home’s total energy costs. Smart thermostats make it possible for homeowners to control the temperature of their home from any device that connects to the Internet. Smart thermostats reduce energy costs and increase the overall comfort of the home.

Security Systems

Traditional security systems react to issues detected in and around the home. Smart security systems alert homeowners of potential problems before they occur, allowing issues to be addressed before they escalate. In addition to detecting possible intruders, a smart security system can send an alert directly to a smartphone or other device if children attempt to leave the home. This increases peace of mind and ensures the safety and security of people and property.

Considerations

While several options exist, these features are only as good as the network behind them. Home buyers should consider builders that install a commercial grade of wiring, such as CAT6 or CAT7 or fiber optic cables.  Many older homes only have consumer grade cable or insufficient wiring to convert to a smart home.  These are questions that should be asked before purchasing a home.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.