Recently when speaking with potential buyers they seem to have a misconception of what is required as a down payment to purchase a home.
I am always asked 'how much down payment do I need' so I just want to clear a few things up in case you are saving up for your first home purchase.
A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pocket”.
Qualified borrowers can further reduce the down payment coming out of their own pocket to 3 percent by lining up gifts from family or grants or loans from non-profits or public agencies.
Having 20 percent down makes your payment less and you get rid of that private mortgage insurance. But if you are tired of paying your landlord, please give me a call today so we can discuss what is available and what your payment would be. There are so many programs available for you.
Know your options so you can plan ahead.
I have a great little home available at 5134 Gaviota in Long Beach CA 90807. Priced at $399,900 it offers beautiful floors, two bedrooms, bonus room, newer windows, covered patio, two car garage and a long driveway.
As I have
said many times before, when it comes to living in Long Beach California there are so many
things you can do that are inexpensive and fun for everyone … from Memorial Day to Labor Day ... the summer of
2013 is no different! Once again this year the Long Beach Parks Recreation and Marine Department
is offering hundreds of free and low cost recreational events under the name of
“100 Days of Summer.”
From the
Long Beach Sea Festival, the El Dorado
Nature Center, historic site events and various programs for hiking, biking,
golf, tennis, swimming and youth and teen programs there is so much do to that
I don’t know how we are all going to find the time to go to work … LOL! You
can find out all about these great activities at www.100DaysofSummer.org where you
will find a searchable calendar of free concerts and movies in addition to all
of the activities that I mentioned above. If you would like to get more information about living in Long Beach, I have been serving the Long Beach & Lakewood communities for over 25 years ... I would love to help you learn more about our area and how you too can enjoy 100 days of summer ... until next time ... Allison Van Wig.
JUST LISTED 10920 HAYFORD ... 3 BEDROOMS, 1,400 SQ FEET AND A GREAT BACKYARD FOR SUMMER ENTERTAINING.
This home is nicely remodeled with hardwood floors, a sunny living room and dining area. Kitchen has new wood cabinets and granite counter tops. Inside laundry, lots of storage and three bedrooms.
Family room has a fireplace and backyard includes a garden area and patio.
The way the consumer sees
the home prices is very interesting. In the last 25 years I have shown property
to a lot of buyers. The average buyer looks at 10—25 homes before choosing.
Most of the time these homes re in the city that the buyer wants to buy in and
within a specific school district.
Some weeks ago, I had the
opportunity to take a buyer around Lakewood in a specific school district. We
looked at six homes, three of them had the same floor plan and out of those
three, two were almost identical in upgrades. Both had central air and heat,
remodeled kitchens with the last five years and great back yards. The only
difference was that one was priced at $435,000 and the other was priced at
$475,000. This greatly confused the buyer. I stated that the $435,000 home was
a good price but not a steal. The buyer wanted to know why there was a forty
thousand dollar difference for the same home.
SO LET’S START WITH THE
LISTING INTERVIEW … The sellers decide to sell their home and they interview
two agents. One agent brings comparable sales and everyone can see that the
homes that have new kitchens in the area sell between $420,000 and $440,000. So
the agents looks at the location, upgrades, floor plan and emotional appeal of
the home and tells the sellers that they should price the home at $439,900.
The second agent brings
comparables to the interview but the conversation with the seller is not
focused on reality but on what the seller wants or what the other agent stated
the home was worth. When the sellers say
that the first agent said the home was worth $440,000, the second agent may say
… ‘well, I can get you $460,000’ … of
course there are no recent sales to substantiate that value. The second agent
just wants the listing …. You must understand that when the sellers get
confused and think well maybe … of course, who would not want $20,000 more?
A good agent will always
review the comparable sales in the neighborhood with the seller. Remember, we
need THREE recent sales within the last six months to use for comparables for
the appraiser.
A good agent will
recommend what price a home should be listed at, not ask the seller what amount
they want. Do not let an agent BUY your listing by telling you an
inflated price. You want to sell your home at the highest price possible and be
able to move on.
You do not want buyers
looking at your home wondering what was the listing agent thinking.
You do not want to be
locked into a six month listing contract with the agent telling you to reduce
the price and not doing anything about marketing the home.
A home that sells within
30 days is priced right, gets the seller the most amount of money and has very
few appraisal issues. Don’t let your
home sit on the market for more than 45 days, because if you reduce the price …
the buyers still do not offer the listed price as you have already been on the
market for 45 days.
It is wrong for an agent to
give you an inflated price just to sway you into listing with them. You count on
that money to make lifetime plans. Interview two agents and then list with
the one that shows you recent comparable sales and has pictures available of
those recent sales for you to actually see what the home looked like. Below is a quick video of Lakewood's market in March 2014.
List with the agent that
recommends a price that fits within your parameters and one that has a great
marketing plan and examples of what they have done in the past … not just
promises of what they WILL do in the future. Here is some current information on what is happening in our local Lakewood real estate market.
Over the last few years, home ownership has lost some of its appeal as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. Astudyby the Federal Reserve formally answered this question.
Some of the findings revealed in their report:
The average American family has a net worth of $77,300
Of that net worth, 61.4% ($47,500) of it is in home equity
A homeowner’s net worth is over thirty times greater than that of a renter
The average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100
Bottom Line
The Fed study found that home ownership is still a great way for a family to build wealth in America. When I visit families in Lakewood or Long Beach that are thinking about selling and retiring, the homeowners that have been paying off their home for the last 30 years have a substantial amount of wealth. We can take a third of this and purchase a home in an over 55 community for all cash and still have the other two thirds left for them to have a great nest egg. Older people that have no home are usually spending their social security on the rent. Very little is left for them to enjoy. Don't wait until it is to late to make a difference in your life wealth. Call me today to get ahead!. If you are curious what is on the market in Long Beach and Lakewood go to my website at www.SuperBroker.com. Lakewood was just voted as one of the top ten boring cities in California (probably because we do not have enough bars!) If you would like more information about how wonderful living in a boring city like Lakewood ... let me know, I have the inside scoop.
