Whether you are a first time buyer, repeat buyer, or relocating to Los Angeles I offer professional REALTOR® service to help you find the home of your dreams. 


Buying a home is most likely the largest purchase you will make.
It's in your best interest to be educated. Pay close attention to every detail. 

My Real Estate Agent's responsibility is to make sure you succeed by avoiding the top sixteen errors purchasers most commonly fall prey to. 

As Your Real Estate Agent it is my responsibility to help you succeed in buying your home quickly, painlessly, and for the most competitive (lowest) price.

After all, my Real Estate Agent's reputation depends on referrals generated from 100% client satisfaction! 

                                            

HOME BUYING TIPS

I prepared this handy Buyer’s Guide which shows you some things to keep in mind as you’re hunting for that home of your dreams. 



   Determine How Much You Can Afford 

  There's no point wasting time and energy house-hunting before you know what you can afford. So your next step is to assess your finances: 

• Compare Buying with Renting
• Find out about interest rates
• Understand your closing costs
• Figure out your income, debt and down payment
• Calculate how much home you can afford! 


Does it pay to Buy a Home or Simply to Rent?

If, like most first-time buyers, you are presently renting, it's easy to calculate your cost - simply, the monthly rent you pay. (Utilities, phone, cable, and other costs can be ignored in this comparison because they'll be approximately the same whether you rent or buy.) 

But calculating the cost of homeownership is much more complicated, because income tax considerations affect your bottom line. And there is, in addition, the uncertainty about how much the value of your home will rise (or even fall) in the coming years. 

As a tenant, you may be taking a standard deduction on your income tax return. This is the time to judge how that standard deduction stacks up against the amount you'd be able to subtract from income if, like most homeowners, you itemized deductions instead. 

Once you itemize, you can deduct: 

• Home mortgage interest;
• All real estate taxes on any property you own;
• Your state income taxes;
• Charitable contributions;
• Medical and dental expenses that exceed 7.5% of your income;
• Personal property taxes if your state has them; and most important
• Certain moving expenses 

At the start of a mortgage repayment schedule, when the debt hasn't been reduced yet, almost all of your monthly payment goes toward interest. A bit goes toward reducing principal (the amount borrowed), so that the next month you're borrowing a bit less, and owe a little less interest. That allows more of your next payment to go toward reducing principal. However, this process is very slow in the beginning and the interest portion remains high for many years. 

Between the mortgage interest and the property tax deductions, you can figure that Uncle Sam is shouldering part of your monthly mortgage payment - 28% of it, in fact, if that's your tax bracket. Your state income tax bracket can also be added to that, before you calculate how much you save on income tax as a homeowner. 


         Interest Rates and How They Change 


As you start shopping for a home loan, your first question of each lender will probably be "What's your interest rate? How much are you charging?" 

Interest rates are usually expressed as an annual percentage of the amount borrowed. If you borrowed $120,000 at 10% interest, you'd owe interest of $12,000 for the first year. With most mortgage plans you'd pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe - and the next month you'd owe a bit less interest. 

When your grandparents bought their home (putting at least half the purchase price down, by the way), their interest rate was probably around 4 or 5%. Rates stayed the same for years at a time. Then in the years following World War II, things became more turbulent. As economic changes speeded up, rates began to change several times a year. By the l980s, lenders were setting new rates on mortgage loans as often as once a week - and they still do today. When inflation hit a high in the '80s, some mortgage loans carried interest rates as high as 17% - and those who absolutely needed to buy, paid that much. 

Rates dropped gradually through the 1990s, and by 1998 had reached their lowest rates in decades. In the new millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents' days - and without 50% down payments either. 


    Paying Too Much for a home 

Without the aid and assistance of a professional Real Estate Agent, purchasers often pay far more than fair market value. It is not uncommon to hear horror stories where thousands of dollars were wasted because the market was unknown.

Market areas differ - what you sold your last home for does not necessarily equate to equal pricing structures in your new neighborhood. Your Real Estate Agent will know what is locally considered good value for investment dollar. If you are relocating to a new city, engage the services of a local Real Estate Agent who intimately understands the fluctuating market trends and will provide a comparative market analysis on the home you wish to purchase. 

Buying a home can be an emotional, time-consuming, and complex process. You want to ensure that the home you purchase meets your family’s needs now, and in the future. Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. 

The “How Not To Pay Too Much For Your Home” (20 Tips) article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home. 


If you are interesting in receiving an article “How Not To Pay Too Much For Your Home” (20 Tips) please Contact me and I will e-mail it to you for FREE.   



     Finding and Purchasing the Right Home 


Once you've decided to make a move, how do you go about it?

When it comes to the largest purchase in one's life, the key phrase is "you'd better shop around". Don't settle on the first home you see. Most Referred® Real Estate Agents have been pre-screened by a national survey of their peers and were chosen for honesty, integrity, market knowledge and experience. Their expertise will be a tremendous help as you consider your home purchase.

Some of the things you need to consider when buying a home: 

- The neighborhood and the market values
- The schools, transportation and shopping available
- Specific home features you may require
- Local traffic and commuter patterns for work. 


      Making House Hunting Fun  


There's no shortage of information available to help you make an informed purchase decision. Take the guesswork out of shopping for a home by taking advantage of all the professional resources available to guide you through the many choices available when purchasing your first home. Your real estate agent like me will be able to find listings for you, based on your wish list. But don't stop there! You can do your own looking, and then ask your agent to show you the house. Start with the Internet. Pick up real estate flyers at local grocery stores and convenience stores. Read the real estate sections of your local newspaper. Drive around neighborhoods that interest you and write down addresses where there are "for sale" signs. Go to open houses. Try everything!

If you don't enjoy the house hunting process have an agent narrow down the search for you and view the homes they have pre-screened for you. 


      Buying a home - Look at the neighborhood 


Once you locate a home that appears to fit everyone's needs, take a second look! If you originally viewed the property on a weekend, drive by during weekday rush hour. Check with the local municipal authorities to see if a major highway plan is in the works - one that will produce a backyard oasis of incessant noise. Investigate airport extensions and shopping center improvements. Heavy traffic blaring into your quiet serenity can destroy your solitude.

Consider your outdoor lifestyle. Do you hold family barbecues, enjoy sitting outside, or invite family and friends to vacation with their recreational vehicles in your backyard? In many cases, excessive traffic noise can hamper a quiet conversation by the creek. You many also find out for the first time just how lightly you sleep. There are also the potential toxic fumes leaking from vehicle exhaust. Do you want your children and yourselves breathing this in? It may take only a month or two to realize the grave mistakes you've made. 


       The "Fixer-Upper" home

Buying a home that is too much of a fixer-upper is a common mistake. You've heard the stories or maybe even made the comments yourself, "It's only superficial, and it won't take too much money to fix that, we can renovate on the weekends, or I didn't realize it would consist of hiring a structural repair artist." Nightmares happen when you take on more than you can handle.

Purchasing a fixer-upper can equate to replacing everything and still ending up with a very expensive brand new old car! Understanding what types of repairs a home needs and the potential cost and time required for each of these repairs is essential for making an educated purchase. 



       Buying Outside of your Budget

We are all familiar with more funds going out than what is coming in. Kids these days always want the best regardless of whether they can really afford it or not. It is easy for a Real Estate Agent to nod their head and make the quick commission, fully realizing that one-year later when the marriage is on the rocks that they will be earning another commission as the property is on the market again.

Careful budgeting is the order of the day! First time purchasers are warned that it is very easy to buy beyond your means, as you count on dual incomes until the new baby arrives. It is better to buy the home you need and con comfortably afford than experience being forced to sell and buy down. House rich and cash poor is not the way to experience life!

On the opposite end of the scale is purchasing a home that offers less function and feature than what you really need. Inevitably, you will end up purchasing the right home and have to bear the cost of reselling and moving again. 



      Over or Underestimating Your Housing Needs

A $10,000+ mistake can occur when you purchase with only the immediate timeframe in mind. You opted for no family room, and three months later are delighted to learn your first child is on its way. Or your children all leave home in the same year and now you find yourself rambling around in empty rooms! On the other hand, when parents downsize too early, they find their adult children have rebounded with a few extra additions! Consider all your options carefully. Saving your hard earned money is a definite plan!

Try using our wish list to help you identify the features you need. 



     Overlooking Schools and Children

A critical error you can make it to forget about the needs of your children. Is your new home close enough for the children to walk to their new school, is there bus service just down the street, does the school offer academics suitable to your children's needs, or is it right next door and you've reached a point in your life where you would prefer quiet solitude?

Caught up in the passion of your new home, it is easy to overlook and undermine these questions. After six months of taxiing your children to and from school, you may find yourself experiencing the need for more freedom. By graduation, your children may find that had they attended another secondary school, the university prerequisites would have been fulfilled. You may thoroughly enjoy sitting alone in your private backyard only to find recess noise and the school's outdoor gym activities hamper your need for solitude. Determine the answers with your Real Estate Agent before signing on the dotted line! 



    Yard Maintenance 

It's lovely to look at your own swimming pool, the manicured lawns, or the beautiful English garden in full bloom, but do you want to spend the time required to keep everything in top working order? Do you have the funds required to hire a full-time landscape architect? In some cases, you may be better suited for townhouse living where yard maintenance is part of the contract, and the local recreation center offers swimming and exercise programs tailored to your lifestyle needs. 


 
   Municipal By-Law Restrictions 

Educate yourself! Consult with your Real Estate Agent and local municipal authorities to learn of any abnormalities and restrictions that apply to the property. Do you intend on converting the basement into an in-law suite? Can you run your commercial business from home? Is there a senior's residence next door that prohibits noise after 9:00 p.m.? Can you park your recreational vehicle in that three-car driveway? 



    Looking for Structural Defects 

Consider an independent home inspection. Careful examination by a professional will remove all doubt! Is that tiny crack in the foundation a repair nightmare or merely settlement? Are the walls infested with termites? Does your budget have room for thousands of dollars in reconstruction costs? For a few hundred dollars you can obtain an extensive inspection report that will point you to any structural defects in the building. 
Ascertain the cost of repairs prior to entering into a binding contract. Write your purchase contract subject to a satisfactory home inspection so you can renegotiate if the repairs are beyond your current budget. Or opt for another home more suitable to your needs. 


      Do Your Homework: 

Make sure you know what type of home will meet your needs, your price range and what area or community you want to live in. Have your check list be prepared. 


Home Buyer's Wish List

Location:
-What part of town (or country) do you want to live in?
-Do you want to live in an area with a Community Association?

Community Amenities:
-Shopping near by
-Fitness Center / Gym
-Community swimming pool
-Golf course
-Basketball court
-Tennis courts
-Clubhouse/activities
-Gated community
-Do you need access to schools?
-Do you have to be close to public transportation?

General Home Features
-What price range: Min: _________ Max: ________
-Type of House? : One story/2 story
-Townhouse /condo/mobile home
-What house age range are you looking for?
-What house’s style appeals to you most?
-Contemporary/traditional/southwestern/colonial/no preference
-How much renovation would you be willing to do?
-Do you have any animals that will require special facilities?

The Lot
-Large yard (1 acre or more)
-Small yard (less than 1 acre)
-Fenced yard
-Garage Carport
-Patio/deck
-Pool /Outdoor spa
-Extra parking
-Other buildings (barn, shed, etc.)
-Do you need a Special view?

The Interior
-How many bedrooms: must have? ____ like to have? ____
-How many bathrooms?
-How many square feet? Min: _______ Max: ______
-Features of the House?
-Eat-in kitchen /Separate dining room /Formal living room /Family room
-/Separate den or library /Full Basement /Laundry room /Workshop
-“In-law” apartment /Spa in bathroom /Air conditioning /Fireplace
-Floors: /Wall-to-wall carpet /Ceramic tile /Hardwood floors
-No interior steps __
-Lots of windows (light) __
-Special Features? 


       Be Certain: 

Be ready to make a decision quickly. Being prepared will help you be in a position to act when you find the right home that meets your needs. 

Avoid the Most Common Home Buyer Errors

Buying a home is the most expensive purchase most of us will ever make. It is also a stressful process, and one that can stretch out for a long period of time. There are plenty of opportunities to make a mistake when you are buying a home in Los Angeles, and there are some mistakes that are more common than others.
Here's a list of some of the most common mistakes people make when buying a home, and some ways to avoid them. 

Not getting pre-approved for a mortgage. Los Angeles real estate market is hot, and that means there are a lot of people looking for homes. Pre-approval for your mortgage amount before you start shopping for a house will provide you with a critical guideline when viewing properties. If you fail to get approved beforehand, your estimate as to how much you are able to spend on a home could be wrong, and you may waste time on properties that are outside your ideal budget range. Moreover, the process of approval can take a while, and you may find yourself losing out in a bidding war when the seller accepts an offer from a buyer with funds already in place. 

Failing to have a home inspection done. Getting the home you are interested in buying inspected before making an offer is something that many buyers fail to do, to their detriment. By paying the small price for the home inspection beforehand, you may save yourself thousands of dollars in the long run. Most buyers, and for sure their realtors have an idea about how to judge the cosmetic parts of a house's makeup: room layout, paint and carpets, appliances, that kind of thing. What an inspector will do is check the structural integrity and the "bones" of the building, and make sure there aren't any hidden problems that could really cost you in a few months or years. 

Failing to negotiate. Buying a home in Los Angeles is a business transaction, and the price is not final. Don't be scared to offer what you think is fair on the house, rather than just agreeing to the asking price. You can also bargain for additions to the package; getting the sellers to leave some new appliances as part of the deal can save you a lot of money. "Inclusion clauses" can be your friends, and you shouldn't be afraid of using them! 

Using your heart, not your head. There is a lot of emotional involvement in buying a home, but always remember that it is business. A certain house in Saskatoon may seem like the perfect one for you, but sometimes the owners will be committed to a price that is just too high. You have to be ready to walk away if you think you are getting a bad deal, no matter how much you may love the house. Also, never take the seller at their word, no matter how kind they may be. It's in your best interest to do a check on the deed to ensure there are no liens or other owners.

The key to avoiding most of the common mistakes in buying home is to approach the matter as coldly as possible. You will find the perfect house for you just remember that if the price is too high or something is questionable, it isn't perfect. 


  As Your Real Estate Agent it would be my responsibility to make sure you succeed by avoiding common mistakes people make when buying a home.

It is my responsibility to help you succeed in buying your home quickly, painlessly, and for the most competitive (lowest) price. 

It would be my pleasure to answer any questions you may have regarding real estate in this area, including: schools, community centers, parks and neighborhoods that make it special! 

                                   

              Please  Contact me for all your real estate needs!