Be Un-Emotional When Buying a Home In Order to Get the Best Value!

 

Watch on your mobile device >>

Want to break your heart and your bank account at the same time? Then buy a new home based on the fact that you've fallen in love with it!

Needless to say, you should never do this!

In some cases, when you fall in love with the "pretty face" of a house, you fail to look underneath and find problems like bad wiring, leaky roofs, bad foundations, etc. This is an extremely expensive way to buy a home!

A funny and sad example of this is shown in the 1986 film, The Money Pit, starring Tom Hanks and Shelley Long. They make the mistake of falling in love with a home and think they're getting a $1,000,000 property for only $200,000.

Once they get into the home, they find out it'll cost a million to repair it! It has wood rot, a bad roof, bad plumbing, bad electricity, even bad raccoons!

Well, that's Hollywood exaggeration, of course. After all, The Money Pit was a comedy. But, when things like that happen to you, it's no joke. Repairs can cost you a lot of money and heartache, not to mention dangerously rising blood pressure!

So, again, never ever fall in love with a house at first sight! Easier said than done, you say? How do you avoid this tendency? Below, I offer some solutions to the problem!

Solutions 1: Get Cold Hard Facts about the Home!

When I talk about "cold, hard facts," I'm talking about getting the house evaluated by a certified home inspector.

It's well worth the money to have this job done because the inspector will cast the objective eye you lack on the property. He or she will evaluate every aspect of a house - roof, plumbing, wiring, foundation, etc.

And then, that inspector will provide you with a written report that may range anywhere from 20 to 50 pages. It will give you a point-by-point summary of what needs to be corrected.

The cost of a home inspection varies with the region of the country. Nationally, they range from $200 to $400. But, for the investment of, say, $200, you prevent yourself from losing thousands of dollars in repairs in two ways.One, you can simply walk away from the deal. Or, two, you can require that seller fix all items before you sign a contract!


Solution 2: Cool Off and Take Your Time!

Infatuation with a home is fun and exciting, and you can have the overwhelming temptation to buy an attractive home practically "on the spot."

My advice - walk away and come back several hours later, especially after you've viewed other properties! By then, it's likely you'll have a more objective eye.

Solution 3: Keep It Simple!

By this I mean that you should stick within your price range. You want the best hom e at the best price within your means! So, if you see an outwardly gorgeous home at, say, $10,000 above your price limit, say, "I love you, but you're way too pricey for me!" and walk away from the temptation!

Solution 4: Rely on Your Realtor!

At heart, I and other professional realtors like me, want you to have a home that meets your needs in the best way possible. That means preventing you from buying a home that's in substandard shape and/or beyond your means.

To be perfectly blunt about it, I rely on great word of mouth from satisfied customers to make the most of my real estate career. So, you have my promise that I'll do my absolute best to get you into the house of your affordable dreams!

Need that objective eye to help you make a smart home-buying decision? Contact us today.

Turning a New Leaf for the New Year Coming Ahead

Watch on your mobile device >>

Wow! Did we ever have a fantastic year in 2012! And it was almost as if it were against all odds, with the way the national housing market and economy has been lately. But we have an interesting run with many buyers enjoying the marketplace and many sellers seeing viable returns on their home sale as well.

2012 Was a Great Year!

The Dave Kibbey Team this year will close on a total of more than 80 properties in 2012 with a sales total amount exceeding $30 million. We look forward to the coming year and anticipate much activity on both the buying and selling sides of the fence.

Lots of Real Estate Activity Expected in 2013

There has been much pent up demand given the election from just a couple months ago and also the state of our economy – so we feel there will be a significant increase in real estate activity come spring time and beyond. In fact, high-end properties will likely also pick up in our marketplace.

There are some changes that we are not entirely sure of yet, however, such as changes in tax cuts and also some government programs that do not appear to be extended past 2012 (for example the Debt Forgiveness Mortgage Relief Act). To learn more, contact one of our team members today.

~

As always, we invite you to contact us with all your real estate needs – whether buying, selling or investing in a properties. We look forward to helping you achieve your real estate goals in the coming year!

How Inventory Levels Affect the Sale of Your Home

Watch on your mobile device >>

One of the first things I discuss with prospective sellers is the idea that there is a certain absorption rate that must be considered when looking at a market in which to list a home. In essence, absorption rate is a tool used to evaluate the supply and demand of the currently available homes on the market. The reason this has an impact of your home’s selling success is clearly because it will show a correlation as to how much in demand your home may be in that neighborhood and how quickly other similar homes are selling.

To understand this further, I have broken down our areas of coverage (Rancho Mirage, Palm Desert, Indian Wells and La Quinta) into price points and explained each as follows:

Median Price Point of Up To $500,000

At just 4.2 months of inventory on hand, up from a very low supply of 2.9 months in May of this year – we are seeing homes in this price range selling very fast particularly when they are priced right or even priced slightly above recently sold values. Depending on your motivation level to sell your home, it could take that much time (4.2 months) to sell but it is critical to price your home appropriately.

$500,000-$1,000,000 Price Range

There is a significant difference in inventory levels with this mid-level price point and it shows in the 11.9 months of supply currently on hand. This number is down from just a year ago when the number of available homes in this range on the market was 14.9 months worth. In other words, if no new homes were to come on the market in that time frame it would take 14.9 months for all those homes to sell assuming market conditions remained the same. In this case, pricing below the market may be needed to get your home sold quickly but for the most part it is important to remain patient with the market.

$1,000,000- $1.5M

This price bracket of homes presents a greater challenge since there are currently over a year and a half worth of homes on the market, up barely from a year prior. Since homes in this market are moving at a snail’s pace it is important to identify your motivation level and if the need to sell quickly is there then you may need to price very aggressively and be willing to adapt to the market. Lowering your expectations is key to selling success for homes in this price range today.

$1.5M and Up

The luxury home market traditionally has a very slow absorption rate and this year is no exception. With a five-year supply last year and a 20% improvement to just 4 years worth of available homes this year, things are selling in this market but very slowly. The hit and miss results can be very discouraging but it is important to keep in mind that once again aggressive pricing strategies and the willingness to be open-minded when it comes to adapting to the market will make a difference. Typically, the higher the inventory of homes in any price bracket the lower the prices seem to be driven – therefore we strongly suggest selling now rather than rely on an uncertain market in the future.

~

If you would like to explore the options for your home, regardless of price point, contact us today for a customized consultation on how we can help you achieve your real estate goals. We look forward to serving you! Call 760.774.0105 today!

Interest Rates and Available Loans Make It the BEST Time to Buy

Watch on your mobile device >>

Anyone that is watching the real estate market knows that interest rates have never been as low as they are today. In fact, this is a historical occurrence that keeps on repeating itself month after month after month. There is no telling how long the Fed will keep our base rate down but for now, we’re in great shape. Today, we meet with Ed Lotstein from the Franklin Loan Center to talk about some of the trends we are seeing in today’s marketplace with respect to mortgage rates and loans.

Record Setting Historic Lows Present A Phenomenal Opportunity for Buyers

On 30-year fixed rates loans for conforming loans – we are seeing a typical rate of about 3.125% with a point on loans up to $417,000. Loans with zero points are coming in at an interest rate of 3.375%. Government-backed loans such as FHA or VA loans have mortgage rates in the low 3s – once again an unprecedented historic low. Jumbo loans in the amount of $700,000 to $800,000 are reported at below 4% at the present time.

All these rates are lower than any of us have ever seen in our entire lifetimes let alone careers.

The take away message is that now is a great time to buy. If you have been on the fence about whether or not to buy, the low cost of borrowing offers plenty of motivation. When you combine the relatively low housing values with low interest rates, it is a great time to get a good deal. In fact, I strongly suggest meeting with your loan officer to work out the numbers; you will be surprised at how much the savings add up once you pull an amortization schedule. When buyers lock in the phenomenal rates available today for 30 years, or even 15 year terms, the savings compound into thousands of dollars.

Refinances Are Allowing Existing Homeowners to Save Hundreds

In addition to new purchases, the low interest rates are also benefitting millions of homeowners with some equity in their properties. If your mortgage is currently at anywhere above 4%, we strongly suggest meeting with a loan officer to assess your financial situation and discuss refinancing.

Financing Available for Canadian Citizens in the United States

While on the topic of mortgage financing and phenomenally low rates, one thing that many people do not realize is that financing is available for citizens of Canada that choose to purchase properties in the US. In fact, there are hardly any countries that allow foreign nationals to obtain such financing. There are a few requirements that are different than the standard finance process for American citizens. Canadians would require a 30% down payment on the property and the process would entail a full documentation loan where detailed documentation of financials and tax returns would be required among other things.

~

Regardless of what your real estate needs are these days, one thing is certain – the market today is ideal for buyers and investors. We invite you to contact us today for more information about how we can help you achieve your real estate goals.

Dave Kibbey 760.340.9253 or dave@teamkibbey.com

Ed Lotstein 760.413.8866 elotstein@franklinlc.com

Could This Be the Perfect Time to Sell Your Home?

Watch on your mobile device >>

During the past five or more years things in the real estate world have been challenging to say the least. Particularly in harder hit markets, sellers have been wary about putting their home on the market only to find that there wasn’t enough interest in the property.

But things have drastically changed over the past year or so. Today, we are looking at an inventory level of just 3.7 months. What that means is that if nothing were to change and no new properties were to be listed on the market, it would take that much time for all the current available homes to sell. Right now, we have 3,100 homes on the market – our lowest level in six years!

How does this translate to you as a homeowner that might want to sell? It means that there could not be a better time to sell your home. With decreased inventory, demand automatically rises. And when we have higher demand, we see sellers getting higher returns on their properties. There are even cases with sellers getting multiple offers these days, especially for homes that are priced right, located in desirable locations and in good condition.

The most important thing to determine initially is your level of motivation to sell the property. Are you listing the home due to job relocation? Are you interested in taking advantage of the current low mortgage rates and want to buy a bigger home? Is downsizing the goal or are you just wanting to get in on the action before prices start to appreciate as they have been predicted to do so in the coming months and years ahead?

Regardless of what your reasons are, it is essential to evaluate the current market conditions. And what we are seeing today is an ideal environment for both buyers and sellers alike.

If you would like more information about our marketplace or if you want to discuss your options and learn of how we will market your property to get you top dollar, we invite you to contact us today at either 760.774.0105 or via email at dave@teamkibbey.com.