Real Estate Purchase Basics

There's a lot that goes into a real estate purchase and the better you know what will suit you now and in the future, the greater your chances of finding the right home instead of the wrong one. Usually people who have chosen the wrong house find themselves thinking about putting the house back on the market to sell before very long, or worse. They could end up doing a lot of repairs and cosmetic changes that must be done to turn the property into what they wanted in the first place.

Consider your loan. There are quite a few factors that are involved in purchasing a house at the most financially feasible time. Always consider price and interest rate as a couple. You may be bombarded from the news and word of mouth that that you will get a great deal at certain points when real estate houses and interest rates both drop. You might hear so much about it that you may think you've probably heard it all. However, keep in mind that looking up what your payments will be on a mortgage calculator is a great tool to add all your costs up.

Know exactly what you want. If you search for homes without thinking carefully about what you want in a property, you may very well end up with something that doesn't quite meet your needs. For instance, some people want a pool in the back yard, but may not consider how much work it really is. The same is true for large yards and homes with a lot of square feet. Are you willing to purchase an older home and fix it up, even if you've never been the type to do handy work around the house in the past? Consider the pros and cons in every way possible. There many agent websites, such as this one located in Palmdale , to larger websites, such as Zillow.

Don't settle for less. Once you know what you want, find out if it's available in the area you desire. Don't set your expectations at a unattainable level, but when you have made the most important choices, stick to your decisions the best you can. You may want a specific area so your kids can go to the school that has the highest test scores in the area. Realize that you may have to wait a little longer to find the perfect home when you narrow your choices, but it will be worth the extra time it took you to get just the right house in escrow.

Have the property inspected. One of the most serious errors you can make when purchasing a home is not having a home inspection done before the close of escrow. It's important that the plumbing and electric are in good working order and that the property has a stable foundation beneath it. Use an inspector that comes highly recommended from a friend or a real estate agent. The inspector should have a long standing reputation for catching every problem that exists in a property and giving you a report explaining every detail.

How long you plan to own the house. Consider where you might be in another 5 years. You might want to expand your family, or your elderly parents may move in with you. You may also not be planning on staying at your current job forever and your house may not be in a prime location where you can find another job. Everyone plans their future differently, but whatever those plans are, mold your house search according to them.

Make up a list. The best way to sort out what type of home you are really going to need is to write it all down on a piece of paper. List everything you are looking for in a house on the sheet and then write pros and cons about each thing, so you can sort out what you really do and don't want. It seems like something you might just be able to come up with in your head, but you will probably discover that writing it all down helps a lot. Then keep your list handy when you explain which specifics you desire the most to your real estate agent.

My Favorite Home Inspector

What I really like about blogging is the fact that I get a chance to let everyone know about an excellent businessperson when I find them. Today I'm writing about a great home inspector in the Antelope Valley. His name is David Kraemer and he owns and operates Inspector Catch-it.

Let me tell you about the first time I met David. I was selling a house out in West Lancaster and as part of my job, I had to be there to open up the door to let him in. So I arrived at the property and this man came up with a computer strapped around his shoulder and a tool belt with all sorts of gadgets that I didn't recognize around his waist. Let me digress for a second and say that his poor computer met its maker at some later date and has unfortunately become a casualty of the business, but that's another story. He came up to me and started explaining how his new software worked and was just a very friendly person.

Then he began his inspection. As I waited, I watched David check out every nook and cranny of this house from the ceiling down to the foundation. He didn't miss a single thing and was extremely thorough, but that's not the only fact that impressed me. He also explained everything, including how one little clear box can test a microwave, plugs that check electric voltage, water pressure standards for outdoor faucets, how they construct sinks to keep them from getting clogged and more. I love to learn new things and he made my time there a true pleasure instead of what would have normally been utterly boring.

So of course, I kept calling him whenever a client needed another inspection. At one house, I had clients who spoke only Spanish and he started communicating with them in their native language. He then invited the family to go around the house and watch him work, just the same as he did with me. So as I stood there, I saw a train of people walking single file around the house behind the inspector and they were having a blast.

Now remember how I mentioned he was speaking Spanish to the clients? Well my mother, who is also a real estate agent, was there with me. She decided to speak a little German to the man, just to see what he'd do. Under any normal circumstances, the usual response from most people is to be impressed that she could speak some German. However, without skipping a beat or stopping his inspection, he began talking for a couple minutes in German. Everyone was shocked and I think he might have humbled my mom a little bit too. I hope my mother doesn't read this, but I found the whole situation hilarious. What doesn't this guy know? I still laugh when I think back to that day.

So consider this my little testimonial. While most people just want to be left alone to get their job done, this inspector is willing to explain everything to buyers, or anyone else who asks. Plus, he does an awesome job as an Antelope Valley home inspector.

The Antelope Valley Fair, 2010

August in the Antelope Valley is a special month. That’s when thousands of residents in Palmdale, Lancaster and surrounding cities gather to enjoy all the attactions at the Antelope Valley Fair and Alfalfa Festival.

If you're new to the area and haven't been to the Antelope Valley Fair, this is a great year to treat yourself and your family to shopping, roller coasters, delicious food, and plenty of shows to choose from that are sure to be entertaining. Some of the concerts lined up for this year are Ted Nugent on August 20th, Weird Al Yankovic on August 22nd, The Beach Boys will perform on the 23rd and ZZ Top will be on stage on the 24th. If you're short on cash, the grandstand seating is free with paid admission.

The arena events are also exciting shows to see. One great example is the demolition derby, where dozens of contestants enter a race for a real life game of bumper cars. These drivers ram each other until there’s only one operational vehicle left, which is the winner. There are also professional bull riders, rural olympics and the figure 8 race at the fair in 2010. If you miss an event one year, they usually have something similar the next year that is just as exciting.

There are art exhibits, such as: paintings, photographs and homemade crafts. If you prefer shopping, roam around and collect some great items from the stands that local vendors set up. There's enough to keep any shopaholic busy for hours. For animal lovers, there are barns full of farm animals to go and visit as well. There's such a wide variety of things to do, even the pickiest visitor will find something they enjoy.

The AV Fair opens on August 20th and ends August 29th, so mark it on your calendar.

When Trying to Buy a House After a Foreclosure

If you've already gone through a foreclosure, your immediate purchase choices are clearly limited and the alternatives you have at your disposal are never as good as getting a traditional loan. With that in mind, you can consider some less common ways to purchase that you may like:

Lease with an option to buy.
This type of contract is exactly as the name implies and can be closely described as a "rent to own" method of purchase. It allows a buyer to make monthly payments on the property and then purchase it at a predetermined price and date agreed upon in the original offer. The buyer may also negotiate to have a percent of the payments to go towards the down payment at the time of the purchase. A good lease option should last until the buyer has improved their credit enough to make them eligible for a loan.

Owner will carry, or all inclusive trust deed.
Many times in the purchase of a property using terms where the owner carries paper, a substantial down payment is usually obligatory. In fact, 20% or more down is not at all uncommon, especially if the buyer has really poor credit. In addition, the price for these houses is often higher than similar houses on the market. The idea is that the seller takes a risk by carrying the loan for the buyer with bad credit, but in return receives a higher price for their house than what they would have received in a sale with a traditional loan.

The buyer's has a window of opportunity to work on their credit during the time period that the owner has agreed to carry paper. If the contract says the seller will carry a note for 5 years, the buyer must have a new loan established within that time period. So essentially, if a buyer purchased a home that had a note carried by the seller for 5 years and at the end of the contract, the buyer could get a new loan one way or another, they would lose the property.

Hard money loan.
The catch with these types of loans it that the interest is almost always very high. The buyer should speak with more than one lender offering these types of loans, look over the current market prices, negotiate as low of an interest rate as possible, and decide carefully if it's the right choice. The market can be unpredictable when making long term purchases, but if prices are low enough that it still looks worth it, it's another option.

If you have not gone through a foreclosure yet, but know you are going to lose the property, it's never a good idea to walk away. A short sale is a much better choice, yet many home owners in default don't consider it when they get into financial trouble. One main benefit of doing a short sale was implemented by Fannie Mae. They established a policy that allows a home owner to get a new loan insured through FNMA in just 2 years after the short sale of their previous home.
However, if the home owner forecloses, their debt will not be excused for 5 years. What a huge difference.

HUD Foreclosure Incentives In California

There are some great programs for buyers looking for houses in California that they may not normally consider. Foreclosed homes aren't the only great deals out there and many regular bank owned homes don't have programs that are as good as some incentives offered by HUD.

$100 down payment.
If a buyer purchases a HUD home, they can pay as little as $100 down for most properties when using an FHA loan. This incentive is good for home occupant purchasers only and is not available to anyone receiving the Good Neighbor Next Door incentive. One small catch to this incentive is that if the buyer bids over the asking price, they will have to pay the difference between what the listing price was and what the bid amount was.

$1,000 allowance at the close of escrow.
Owner occupants can receive an allowance of $1,000 at the close of escrow by purchasing a property at the full asking price. This incentive allows buyers to use various forms of financing and still be eligable for this program. Purchasers can buying down their loan rate, or get a check cut at the end of escrow. However, the $1,000 incentive cannot be used towards the down payment of a property, nor any closing costs.

The good neighbor next door program.
HUD offers teachers, police officers, fire fighters and emergency medical technicians the opportunity to get a home at a 50% discount on a property. Those who purchase a home through the this program must live in the home for 36 months as their sole residence. Only homes located in the revitalization area qualify to be sold in the Good Neighbor Next Door program.

Even if you don't qualify for an incentive, HUD has some very nice deals on properties that should not be avoided. The main difference between a regular foreclosure and a HUD foreclosure is that you place a bid for HUD, where you put in an "offer" for regular listings.