When to sell.. and when to buy?

When is the best time to sell your home? Most homeowners stress over what season to list their home. There are all sorts of myths about when is the best time to sell, but every situation is truly unique. Luckily, here in the South Bay – each of the four seasons offers different perks of listing your home!

WINTER:

Historically, the winter months are considered to be the slowest season for the real estate market, but it is necessary to take the temperate weather of Southern California into consideration. Seasonal variations may play a more prominent role in other parts of the country, but we fortunately skirt a good portion of extreme winter weather. Warm, sunny winter days means that your home may have just as much curb appeal as it does during the spring months!

As Sam Heskel, president of Nadlan Valuation, an appraisal firm in Brooklyn, highlights, “Sellers typically find that off-season buyers may be more focused and ready to buy a home.” This means that while some home buyers take a break over the holidays, they return after New Year’s with renewed motivation and focus to purchase a home.

*Remember, the quality of the buyers is often times more important than the quantity! Buyers who are serious about finding a home (no matter the season) are more desirable than those who are casually looking.*

SPRING:

The spring season always comes out on top as the best time to sell. With the warm weather, more daylight and spring fever in full swing, buyers are more likely to shop during this time of year. With more competition comes bigger sale prices. Thus, home prices are highest during the prime season, when more homes are on the market.

SUMMER:

A lot of sellers hold off putting their home on the market during the summer, preferring to wait until the first of the year or the spring season. This results in reduced inventory during the summer months, meaning more buyers checking out your home, whether online or in person. “For Sale” signs and postings are much more visible and easier to install in the summer than they are in the winter. Also, in some tourist areas, traffic is heavier, ensuring additional exposure.

Lastly, listing your home in the summer positions you well to sell in the fall. Even if you do not secure a buyer over the summer, you have the opportunity to assess the buyers’ reactions and make necessary adjustments to make your home more appealing.

FALL:

According to a survey by ERA, 40% of respondents cite that with the end of the vacation season comes a renewed attention to real estate. The survey also highlighted emotional motivations that are strengthened during the fall – namely the desire to be “home for the holidays”.  ERA President and CEO Charlie Young states, “As vacations wind down after Labor Day and people become more focused, the desire to be in a new home for the holidays is a historically strong driver of fall home sales”.  As the season progresses, financial motivations also come into play. 10% of respondents cited the desire to purchase a home before the end of the year in order to gain tax benefits.

The point of this all being: There are clear perks to selling in each season! Make sure that you home is in the right condition to sell and go for it!

Now on the flip side of things, when is the best time to buy?

Do not obsess with trying to time the market and figure out when is the “best time to buy.” Real estate is cyclical and constantly changing. The ideal time to buy is when you find your dream home (or the house that has the potential to become it) and you can afford it. Trying to predict the housing market and wait for the so-called right time, may mean you miss out.

You have to remember that while buying a home is one of the most important decisions of your life, the rest of your life does not get put hold. We have had buyers who have been planning a wedding while house-hunting, as well as a couple who gave birth during escrow! It can be a stressful process, but one that is well worth the effort!

However, there are three things that we suggest having arranged before you purchase your home: be pre-approved, have enough for a down payment and make sure you are comfortable with the monthly mortgage payment.

Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford.

As always, we are here to help so don’t hesitate to contact us with any questions or to set up a consultation to discuss if right now is the right time for you to buy or sell your home. info@weberaccetta.com

Seller’s Transaction Timeline

Hi Friends!

This year I have been working with a lot of sellers so I thought I’d fill you in on what a typical timeline looks like from the seller’s end of a transaction.

1. Select a Realtor

2. Initial Consultation
-Review market analysis and comparable homes
-Establish listing price
-Sign listing agreement

3. Home Preparation
-Declutter
-Clean up
-Stage

4. Work with Realtor
-List and market the home
-Schedule showing and open houses
-Review offers
-Negotiate terms

5. Fully Executed Sales Contract
-Open escrow
-Buyer to deposit earnest money 

6. Prepare, Review, and Sign Documents
-Disclosures to be filled out and signed
-Escrow instructions to be filled out and delivered back to escrow

7. Grant Buyer’s Access to Home for Inspections
-Review and negotiate request for Repairs (if applicable)
-Request buyers to remove inspection contingencies 

8. Request Buyer’s to Remove All Other Contingencies
-Appraisal contingency
-Loan contingency

9. Sign Final Documents

10. Grant Buyer’s Access to Home for Final Walk Through
(if applicable)

11. Lender to Fund the Loan

12. Title Transfer to New Owners

13. Close Escrow!
-Buyers receive keys

14. Receive Final Check and Closing Package from Escrow

Your agent’s job is to help keep you on track every step of the way so you wont have to memorize this process. They should be aware of the deadlines for the buyer to remove their contingencies and for when your paperwork is due. They will also help you coordinate appointments with the buyers as well as handle any new negotiations that may arise during the escrow period. Hopefully this timeline has given you a snap shot of what to expect when selling your home and the general order of the process. As always, if you have any questions or if you are thinking of buyer or selling your home, don’t hesitate to contact me! cell: 310.387.4693 or email: laurenw@hmsold.com

Three Tips on Pricing Your Home Correctly

Pricing your home for sale is a calculated and strategic form of art. Using the average price per sq ft and multiplying it by your homes sq ft is no way to come to a price point. You need to think about all the qualities of your home that makes it different from the one next door (good or bad). Not only is every home different but every seller is different. Here are three tips to consider in pricing your home.

1. Identify what your top priority is for selling your home.
In today’s market, many seller’s are experiencing a multiple offer situation. While this may be an ideal position to be in, it can also feel overwhelming and in some cases it can be an emotional process. However, if you are clear about what your main goal is before you list your home for sale, you will be able to assess your options clearly and make a solid and quick decision.

2. Consider your best and worst case scenarios before, during, and after the sale of your home.
You can start by asking yourself some of these questions: Do I need to sell quickly? If yes, what is the absolute lowest price I am willing to sell my house for? What price will I be happy with if I only get one offer and it is for asking price? What is the amount of money I need in net profits to purchase my next home? Are there any issues with my house that will cost the buyer a significant amount of money to fix? If I price my house at the top of the market, am I willing to miss out on potential buyers that won’t consider anything in this price point? If I don’t receive any offer after a few weeks on the market, am I comfortable making a price reduction? How often am I willing to make a price reduction? How long am I willing to list my house if it doesn’t sell?

3. Learn about all the comparable homes in your neighborhood.
Keep in mind that although it is important to know the asking prices of current homes for sale, it is more important to know what most recent closed sale prices are in your area. Another thing that some people miss exploring are the homes that went on the market and never sold. These homes are called “expired listings” and they are your best indicators for over priced homes.

Having an experienced, knowledgeable, and honest agent help you through this process will be your key to pricing your home correctly. He or she should be able to recognize what is important to you and help you figure out a price that will deliver the results your are looking for. Of course, I am always here to help in any way possible and I offer free home evaluations to anyone that is interested in knowing their home value. Please don’t hesitate to contact me if you have a question or would like a consultation. 310.387.4693 or laurenw@hmsold.com

New Gardena Listing Coming Soon!

Hi Everyone!

I am excited to share that I will be listing a new home for sale in Gardena! It is currently being prepped to officially go on the market next week but if you or anyone you know is looking for a 3bedroom/3bathroom single family residence in the Gardena neighborhood next to El Camino and Bodger Park let me know! It is a turnkey pool house with new kitchen, bathrooms, floors, recessed lighting, paint (inside and out), and it is beautiful! Asking price will be $429,000. Please contact me for more details on location and if you would like to set up a special pre-view showing. 310.387.4693 laurenw@hmsold.com

It’s Here! New Listing in Tustin!

15212 Wesley Way, Tustin CA 92782

First open house will be this weekend Saturday 4/18 and Sunday 4/19 1pm-4pm.

Beautiful & rare corner unit located on the green belt in Camden Place listed for the first time since it was built in 2007!  Situated away from busy streets and inner units, this condo has front-door access to the green belt park, views of Saddleback mountain, and is South-facing inviting in sunlight from three sides throughout the day.  First master suite is located on the lower level with full bathroom and easy access to laundry room and two-car garage.  Main level features a chef’s kitchen with expansive granite slab counter tops and stainless steel appliances including gas range.  The open concept is perfect for entertaining and helps the chef feel included in activities going on in the dining room and living room. Main level also features guest bedroom, second full bathroom, media nook, gas fireplace ,and spacious private balcony with views of the green belt – perfect for summer BBQs!  The entire top floor serves as a sanctuary, fully dedicated to an enormous master suite with walk in closet, master bathroom, double his/her sinks, jacuzzi tub, separate stand up shower, and linen closet.  Entire condo is pre-wired for the Internet and cable with convenient outlets in all three bedrooms and living room.  Home has been professionally cleaned, newly painted, and carpets have been professionally shampooed ready and waiting for it’s new home owners to move in right away!

Click here for the full listing with more photos and details

http://mrmlsmatrix.com/matrix/shared/smGjFtxrcqFd/15212WesleyWay

Virtual tour:

https://www.youtube.com/watch?v=7CjA5x6x0Z0

Contact me directly with any questions or to schedule an appointment.

310.387.4693

laurenw@hmsold.com

What To Look For On Your Preliminary Title Report

Hi guys! This week I will give you some tips on what to look for in your preliminary title report. It can be a little daunting to review and to some people might even look like a foreign language. Luckily, my friends at Orange Coast Title have helped me put together these tips that I thought would be really useful to anyone looking to buy or sell their home.

What is a Preliminary Title Report? 

A preliminary report is a report prepared by a title company before issuing a title insurance policy. This report shows the ownership of a specific parcel of land, together with the liens and encumbrances that will not be covered under a subsequent title insurance policy.

What role does a Preliminary Report play in the real estate process?
The report contains the conditions under which the title company will issue a particular type of title insurance policy. It lists title defects, liens and encumbrances,which would be excluded from coverage if the requested title insurance policy were to be issues as of the date of the preliminary report.
A preliminary report provides the buyer with an opportunity to seek the removal of objectionable items referenced in the report, prior to closing the sale.

What should I look for when reading my Preliminary Report?
Pay particular attention to the nature of the ownership interest in the property you will be receiving, as well as any claims, restrictions or interests of other people involving the property. The most common form of interest is “fee simple” or “fee”, which is the broadest form of interest an owner can have in land.
Liens, restrictions and interests of others, which are being excluded from coverage will be listed numerically as “exceptions” in Schedule B of the preliminary report.An example of a common type of third party interest is an easement given by a prior owner, which may limit the owner’s use of the property. A printed list of standard exceptions and exclusions listing items not covered by your title insurance policy may be attached as an exhibit item to your report.

Here’s a flyer OC Title has provided us. As Always, feel free to reach out to me with any title questions!

Happy 2015!

2014 was a great year and I am so excited to carry on the success of last year into 2015! A lot of people have been asking me about the housing market and what I predict for the new year. Honestly, I do think that the market is going to continue to thrive and it remains a great time to buy due to low interest rates. As of today rates have dropped again to as low as 3.5%! I have a lot of clients that were waiting through the holidays to start looking again in the new year and spring time so if my business is any indication of the general South Bay market I expect multiple offers to be a continuing trend. This multiple offer situation is created by the surplus of buyers (due to low interest rates) and low inventory of homes to purchase. However, I don’t believe this challenge will be as crazy as 2013 and 2014 mostly due to prices starting to level out and not increase as dramatically which makes me hopeful to see more sellers willing to list their house this year to get top dollar and multiple offers on their home. All in all I think 2015 is going to be another great year to buy and sell.

Now, reflecting back on 2014 I have to give a shout out to all of my clients who chose me to be their real estate agent. I can not begin to describe my gratitude to everyone who entrusted me to be the one to help guide them through what can be one of the most nerve wracking experiences of their lives. Buying and selling your home is a big deal and I do not take it lightly. It is an honor and a privilege when someone gives me the opportunity to represent them and fight for their needs. I have met so many amazing people and I have enjoyed every moment of getting to know my clients on a personal level. They have each taught me valuable lessons that I apply not only to my business life but also my personal life. I have been inspired by my clients who have all shared one common dream and goal… to become a new home owner. Whether it was their first time purchasing or upgrading from a condo to a townhouse or even downgrading size to live in a better neighborhood, all experiences have been a blessing to be a part of such an important time in their lives and to be able to help them attain a high goal. I have seen the hard work that my clients put into their careers, the exciting events of getting married or having a baby, but whatever the reason for the move my clients all have their own story and each story has touched my life, maybe more than they even know. So thank you again to all my 2014 clients, I love you and I wish nothing but the best for this new year to come in your new home!

Capital Gain Tax Exclusions

Hello my Weber Weekly readers! This week I wanted to address capital gain taxes and guidelines on how to avoiding these. First, let me clarify that capital gain taxes differentiate tremendously between investors verse people who use their property as their primary residence. Today I will be elaborating on the latter- primary residence property.

Homeowners Exclusion Rules under 2013 California Real Estate Tax Law states that:
-Single homeowners can exclude up to $250,000 of capital gain from taxes
-Married couples filing jointly can exclude up to $500,000 of capital gain from taxes
-Unmarried people who jointly own a home and separately meet the test can exclude up to $250,000 of capital gain from taxes

Three tests that qualify for Homeowners Exclusion Rule:
1. Ownership: Seller owned the home for at least two of the five year period before the closing date.
2. Use: Seller used the property as a principal residence for two years of that five year period.
3. Waiting Period: The exclusion wasn’t used during the preceding two year period.

Qualifications for married couples:
1. They must file a joint return for the year.
2. Either spouse meets the ownership test (described above).
3. Both spouses meet the user test
4. Neither spouse has recently excluded a gain fro the sale of another home after May 6, 1997
If either spouse does not satisfy all these requirements, the exclusion is figured separately for each spouse as if they were not married. This means both spouses may qualify separately for part or all of the $250,000 exclusion under 2013 California real estate tax law.

If you do not fall within these guidelines you may still qualify for a partial or prorated tax break.
-Moving  due to unemployment
-Doctor recommendation to move
-Unforeseen circumstances ie: death in family, divorce, nursing home move.
The portion of this tax break would be calculated on the portion of the two-year period which you lived there. For calculations you would take the number of months you lived there before the sale and divide it by 24.

Calculation example and what to include in deductions:
Many people do not know to include items such as closing costs and capital improvements as part of their deductions in capital gains. For example people would assume if they bought a house for $100,000and sold it for $400,000 it would be a gain of $300,000 which is $50,000 over the exclusion. This is incorrect.
Things you can deduct include:
-Closing costs
-Broker’s commissions
-Title insurance,
-Advertising costs,
-Administrative costs
-Escrow fees
-Inspection fees
-Legal fees (if any)
-Tax basis in the property
(Your basis is the original purchase price, plus purchase expenses, plus the cost of capital improvements, minus any depreciation and minus any casualty losses or insurance payments).

After implementing some of the deductions and using the same example above it would look more like: They bought a home for $100,000 sold for $400,000 but invested $20,000 in home improvements, $5,000 in fixing up the place and $25,000 in closing costs leaving them with NO capital gains tax at all.

***Because every home, sale, escrow, and individual cases are different I would advise that you consult with your CPA or tax attorney before making any claims and to make sure you are deducting as much as you are allotted for***

I hope this week’s blog has given you a better insight on how capital gain tax exclusions work. As always, please fee free to reach out to me if you have any questions or would like to be pointed in the right direction of a great tax advisor.