Congratulations Ignacio!

Congratulations Ignacio!

I am so happy to share that Ignacio closed his escrow last week and is now officially a homeowner!

After pushing through the VA loan challenges, he admitted it was all worth it in the end 🙂

Here are some more VA tips/facts:
-VA loans MUST have not only a termite report but also full clearance on any recommended termite work which includes section I (usually seller pays for these) and section II items. (easy handyman work that buyers usually take care of).
-NO per diem can be charged to the buyer as the lender will not approve the loan with these additional charges.

As discussed in past blogs:
-You can put as little as 0% down and there will be no mortgage insurance
-If you have disability there will be no lender’s fee
-VA appraisers are randomly assigned and any safety and hazard issues they note must be fixed

If you are a veteran you should look into your options for purchasing a home with a VA loan. I definitely believe that our vets should use their benefits that our government offers for their service to our country. My recommendation is to always explore your options but if you are purchasing with a VA loan, look for a house that is new(er), in good condition, or flipped.

Congratulations again to Ignacio! It was a tough escrow but we did it!

How is the Real Estate Market Doing?

housing-market-forecast

A lot of people have been talking about how interest rates are at a “historical low” so I wanted to expand on how amazing it really is to purchase a house in today’s market. Just a couple years ago, in 2012, the average rate for a 30 year fixed loan reached an all time low of 3.35%. The last time we saw anything close to this was back in 1951 when rates were averaging 4%. Fast forward to today we are looking at interest rates around 4.5% which is incredibly low and not half bad considering they have once reached a historic high of 18.5% back in 1981.

Because rates are so low we are seeing a surplus in buyers, unfortunately the main challenge these buyers face is the lack of inventory.  We are definitely in a “sellers market” where sellers hold the advantage between the two parties. If a home is listed at a good price, it is expected to get multiple offers, sell within the first week, and probably above asking price.  There is definitely a demand for homes and with home prices on the rise you can get top dollar with a fairly short turn around time if listed and marketed correctly.

So over all I would say the real estate market is doing great! We are in a time where it is not only beneficial to buy but it is also a good time to sell. How amazing is that?

As always, the market is continuously changing but I am here to be your local expert and keep you informed and up to date on the latest trends and news. Feel free to ask me any questions. Hope you are having a fabulous Weber Weekly Wednesday!

You can check out the interest rate trends here to get a better glimpse of where rates have been since 1971.

VA and FHA appraisal challenges

Happy Weber Weekly Wednesday! This past week was a challenge so I wanted to share part of our experience with you to spread some knowledge.

When searching for a home you may come across listings that are described as “fixers” and the listing agent has disclosed that the home will not “go VA or FHA”. This is an indicator that the house needs some major work and will not pass health and safety codes for VA or FHA loans unless the issues are address and fixed prior to closing escrow. Most sellers will not want to deal with a delayed escrow and will only consider offers that are either conventional or cash, depending on how much work is required.

In the deal I am currently working on, the house is in fairly good condition and we did not see any major indicators that we would have a problem with our appraisal. The job of the appraiser is to be the lender’s eyes and make sure the house is valued at the price they are giving a loan on and additionally for VA and FHA loans, to report that there are no health or safety issues. Because there is a converted garage that was unpermitted, we expected the appraiser to not count the square feet as part of the dollar worth to the home. Meaning, the house would be valued as a 2 bedroom 1 bathroom home instead of a 3 bedroom 2 bathroom home. Also, because it is not permitted we knew that the worst case scenario would be that they might require us to take down/out the work that was done and convert it back to it’s original condition as a functioning garage. Because we knew going into this home that this could be a potential issue it was agreed upon prior to entering escrow that the work would be done by the buyer.

The appraisal report came in at value but with the following requested repairs:
-Remove/repair bars on bedroom windows (to allow for emergency fire escape)
-Properly brace and strap the water heater (safety code for all homes)
-Chipped paint on garage door to be removed and repainted
-One light switch cover to be replaced
*Repair/replace missing overhead door hardware at the garage

Even after all the work my client put in to get the garage door to open, the appraiser re inspection did not pass. We now need to go back out and get it professionally done so that it does not get flagged as a “health and safety concern”.

My advice to all buyers and sellers is to know what your potential challenges will be when submitting/selecting an offer on an older home and on anything that has unpermitted work. Also, be sure to negotiate worst case scenarios prior to entering in escrow.

My veteran buyer, my lender, and my team are all continuing to work together and push forward to make this deal happen and hopefully he will have the keys to his home by the end of this week. Wish us the best of luck and I’ll be sure to keep you posted!

Commercial Office Lease

Congratulations to my client’s, 3PL Systems, for moving into their new office space! They are a freight broker software company and their on-going success has brought them to look for a new place to host their growing team.

If you are a company and looking for a space to lease out, you may want to consider working with a real estate agent. There is not cost to you, as the agent gets paid out by the landlord or listing brokerage and they can help negotiate on your behalf to get you the most for your new space.
Things that can be negotiated:
-Price per square foot for monthly rent
-Terms of lease (years and a couple of month’s free rent)
-Tenant improvements (instillation of window in second office, dry erase paint in private offices, kitchen area, etc.)
-Parking
-Maintenance

Thank you to this fabulous and fun company for entrusting me with your move!

You can check out their website here: 3PL Systems