The good, the bad and the UGLY about Closing Costs

Cha-ching.

You're in escrow and found the house of your dreams and OUCH you get the closing cost estimate from your lender.

The Lowdown on Closing Costs

When you get a mortgage, you will need to pay closing costs, which are fees – charged by lenders and third parties -- related to the purchase of the home. So, in addition to owing the lender the down payment on the home and the principal and interest related to the mortgage, you will also owe the lender and third parties closing costs, which you usually pay at the time that you close on your mortgage. Most of the time, it is the home buyer who pays the closing costs, rather than the seller, though on some loans such as VA loans, the seller pays a portion of these costs.

What charges go into your total closing costs?

 

Closing costs vary widely based on where you live and the property you buy. Closing costs often include things such as:

• A fee for running your credit report.
• A loan origination fee, which lenders charge for processing the loan paperwork for you.
• Attorney’s fees.
• Charges for any inspection required or requested by the lender or you.
• Discount points, which are fees you pay in exchange for a lower interest rate.
• Appraisal fee.
• Survey fee, which covers the cost of verifying property lines.
• Title insurance, which protects the lender in case the title isn’t clean.
• Title search fees, which pay for a background check on the title to make sure there aren't things such as unpaid mortgages or tax liens on the property.
• Escrow deposit, which may pay for a couple months' property taxes and private mortgage insurance.
• Pest inspection fee.
• Recording fee, which is paid to a city or county in exchange for recording the new land records.
• Underwriting fee, which covers the cost of evaluating a mortgage loan application.

How much will you pay in closing costs?

Typically, home buyers will pay between about 2 and 5 percent of the purchase price of their home in closing costs. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing costs, according to a recent survey.
Lenders are required by law to give you a good faith estimate (GFE) of what the closing costs on your home will be within three days of when you apply for a loan. But these are just an estimate, and many of the fees listed on the GFE can legally change by up to 10 percent, potentially adding thousands of dollars to your final closing cost bill. Within a day of your closing, the lender should give you a HUD-1 settlement statement, which outlines closing costs. Compare this to your GFE and ask the lender to explain what each line item on your closing costs is and why it is needed. Often, many of the fees that make up closing costs are negotiable, and some are completely unnecessary, especially things such as high administrative, mailing or courier costs charged by your lender. If the closing costs come in high, you can walk away from the loan; there are plenty of lenders who might be willing to offer you lower closing costs.

How can home buyers avoid closing costs?

You can also avoid upfront closing costs by getting a no-closing cost mortgage, in which you don’t pay any of the closing costs when you close on the mortgage. Typically, when a lender offers a deal like this, it does end up costing you in the long run: The lender may charge you a higher interest rate on the loan for not paying closing costs, or the lender may wrap the closing costs into the total mortgage owed, in which case you end up paying interest on the closing costs. Finally, home buyers can negotiate with the seller over who pays these closing costs. Sometimes the seller will agree to assume the buyer's closing costs, but only if it's the right market.

Happy hunting!!

Can Pets Hurt a Home Sale?

Dogs do the darndest things when they're bored. Take Squishy, for instance. Lauren came home late one night from her job as a nurse to find that Squishy –her usually well-mannered dog – had torn her sofa to shreds, right down to the woody skeleton.
Wading through the chunks of foam and scraps of distressed leather, she noticed something else: Squishy had enough time to not only disassemble the sofa but also to chew up the living room baseboards.
While a ruined sofa won't impact a home's value, gnarled-on baseboards most definitely will.

Americans Love Their Pets

Over 43 million American households own a dog, and over 36 million own at least one cat, according to the American Veterinary Medical Association. It's unclear how many of these households are owner-occupied and how many rented, but since 65.5 percent of Americans own their homes, it's probably safe to say that many pet owners are also homeowners.

The various dog-shaming websites prove that pets behaving badly is sometimes funny – especially if it's someone else's pet acting up. When it's your cat or a neighbor's pooch committing the atrocities, though, you may pay dearly with a lowered resale value on your home.

Impact on Home Value

Time business and money writer Brad Tuttle claims that pets "can potentially do pretty much the same thing to your home's value that some pets do on the rug." He goes on to credit a New England real estate agent for determining that owning a pet may have a negative impact on your home's resale value.
As evidence, the agent cited a cat owner's condo that sold for up to $30,000 less than it should have because of damage caused by the pets.

Then, there's the noise factor. Whining, barking dogs in a neighborhood can bring down resale home values by between 5 to 10 percent, Appraisal Institute's Richard L. Borges tells Business Insider.
There isn't much you can do about a neighbor's dog, but there is plenty you can do about your own.

De-Pet Your Home

Just as you'll need to clean and declutter your home before it goes on the market, you'll also need to de-pet it. This involves getting rid of not only any damage the pet has caused, but also the hair, stains and, most of all, odors. Start by getting rid of the hair. You'll need a heavy-duty vacuum for the job. Consider having the upholstered furniture dry-cleaned, launder or dry-clean the drapes, and shampoo the carpets.

Carpet: The Stink Magnet

Cat urine in the carpet is one of the hardest odors to get rid of, according to Neeraj Gupta, director of product research and development at ServiceMaster Clean. "Oftentimes," he tells MSN's Marcie Geffner, "you have to remove the carpet, remove the pad and seal the floor, and then replace the carpet and the pad."
If you think you can fix the problem by shampooing the carpet, you may want to pay close attention to those areas your pet chooses to use as a restroom.
First, though, you'll need to find those spots. Christopher Solomon of MSN Real Estate says that not all of the spots will be visible to the naked eye. He suggests that you consider purchasing a battery-powered ultraviolet light – also known as a black light. They are inexpensive and, used in a totally dark room, can pinpoint every bodily fluid that has landed on the carpet.

Other Flooring

If you have a hard-surface floor, you may think you've squeaked by the pet-odor problem. Think again. Even some hard surfaces can absorb urine. You'll need a chemical deodorizer and cleaner to rid the floor of the odor. If it lingers, you may need to strip and repaint, varnish or otherwise seal the floor.

Walls

If you own a dog, you are probably familiar with how they seem to love rubbing against the walls. Walk through your home with your eyes cast on walls and interior doors at doggy height and you'll no doubt notice discolored areas. Sometimes a Magic Eraser will remove the marks. If you've lived in the home for a long time, you may need to repaint to remove the doggy odor.
Cats like walls too – especially male cats, who tend to spray vertical surfaces, such as the backs of chairs and walls, according to the experts at Cornell University, College of Veterinary Medicine. Ask your veterinarian what she recommends to clean and deodorize the walls.

Showings

Your real estate agent will suggest that you not be home during showings. There are a number of reasons for this, but the most significant is that buyers are more relaxed if the homeowner isn't hanging around.
The National Association of Realtors® suggests removing the pet from the home during showings as well. If you'll be home, this is easy, just take the dog for a walk or drive.
If you will be working during showings, you'll need to come up with an alternative for your pet. Here are a few places to take your dog during showings:
Doggie Daycare – This one is ideal. The dog gets a day of socializing and playing, and potential buyers get to tour the home in solitude.
Groomer – An obvious win-win.
Veterinarian – Use the opportunity to get the dog or cat a checkup and shots.
Professional Dog Walker – Hire a dog walker to remove the dog from the home during showings.
Life is chaotic and full of unexpected events when your house is on the market. It's important to remain flexible and accommodate last-minute showings if you want to get the home sold. While pets may be members of the family, they are distractions to buyers, so it's important to decide beforehand how you'll deal with them while the home is for sale.

3 Things to Consider Before Buying a Town House

Have you ever noticed how the terms "town house" and "condo" are sometimes used interchangeably? This is most likely because both types of housing structures may be governed by homeowners associations. That, however, is where the similarity between the two ends. Comparing condos with town houses is akin to comparing apples and oranges.
When most consumers hear the word "condo," they picture a unit in a larger structure. For the most part, this is accurate. The problem, though, is that "condominium" is actually a form of ownership, not a type of structure. There are three major types of homeownership:

1. Condominium
2. Fee simple
3. Cooperative

Condominium owners own the interiors of their units and share ownership of the common areas. "Town house," on the other hand, describes a type of structure – one that is typically two or more stories and attached to one or more other town houses, each with its own front door.
In some parts of the country, town houses may be owned as condominiums or the homeowner may own it fee simple – in which she owns the building and/or land in its entirety.
As you can see, the questions to ask if you are thinking of purchasing a town house will be quite different than those you'll consider when purchasing a condominium unit. Let's take a look at three of the most significant factors you should consider.

1. Homeowners Association

While not all town houses are governed by homeowners associations, many are. This fact opens up a can of worms when considering whether to purchase. HOA fees can be quite expensive, so you'll need to take them into account when determining how much you can afford to spend on housing every month.
During the purchase process, you'll be given a pile of HOA-related paperwork, and you'll need to read every word of every page – or have your attorney do so. You'll want to know if the HOA is solvent, how often it levies assessments and if there is pending litigation, among other issues.
Finally, you'll need to consider if you want to live in an area managed by an association. Some people prefer the structure that an HOA affords while others find that structure too confining.

2.  Getting Financed

Purchasing a fee simple town house is identical to purchasing a detached, single-family dwelling as far as lenders are concerned. If the town house is owned as a condominium, lending becomes a bit trickier.
Owner-occupied homes tend to be maintained better than those used strictly as rentals. Lenders understand this and make it a part of the lending decision. Find out the ratio of owner-occupied to tenant-occupied units before making an offer. If it exceeds 30 percent, you may not be able to get a mortgage for it.
Determine the percentage of homeowners that are delinquent in paying their HOA dues. This is critical information because banks typically won't lend to anyone wishing to purchase a town house where the HOA delinquency rate is more than 15 percent.

3. Exit Strategy

If you're using the purchase of a town house as a springboard to the future purchase of a detached home, you'll want to plan an exit strategy. Yes, it seems silly to consider moving before the ink is dry on the purchase agreement, but it's necessary to achieve your future goals.
Building equity in a home takes time and, depending on market conditions and the type of home you own, it may take longer with a town house. All things being equal (location, proximity to good schools, etc.) a single-family home will appreciate in value quicker than a town house. In reality, the opportunity to build equity in the first few years of ownership of any type of home is minimal unless you pay an enormous down payment.
Ask your real estate agent to give you statistics on town house sales in your area over the past year. Check the average days on the market. The longer a home remains on the market, the less money it eventually brings. Should you decide to purchase, ask your agent to keep you updated on the town house market in the future. Most agents are happy to do this.
Keep in mind that even when your equity begins building, your property taxes may rise. Property reassessments can take a bite out of how much equity you're able to build.
Living in a town house is ideal for those who want the benefit of homeownership at a cheaper price and without some of the headaches that come with a detached home. Choose your town house wisely and with an eye toward future market value.

How to avoid a Money Pit

There's an old saying that a boat is nothing more than a hole in the water that you pour your money into. Boats are expensive – from the purchase to the ongoing maintenance – and boat owners throw a lot of money into that hole.

If that's true, then it's easy to imagine a house being a hole in the ground, ready to swallow a fortune. Sadly, many of them are just that, but it doesn't have to be that way.

If you're house hunting, it's easy to be swayed by design features and miss the red flags that signal the home may just be a money pit.

Evidence of Deferred Maintenance

Ah, real estate lingo. Get ready to learn a whole new language as you go through the real estate transaction. One of the terms you may frequently hear, especially from your agent and home inspector, is "deferred maintenance."

Deferred maintenance is, simply, the putting off of routine home maintenance. Whether because of procrastination or lack of funds, many homeowners fail to perform the tasks that a house requires to remain in good condition.

For instance, failing to replace a cracked or broken wax ring on a toilet can lead to huge repair bills. Caught early, it's a relatively inexpensive fix. If not attended to, however, moisture will seep from the toilet, intruding into the flooring and even the subfloor. Mold may form. Before you know it, you're looking at not only fixing the toilet but replacing the flooring as well.

Let's take a look at some signs that a homeowner has put off performing routine but critical maintenance:

Cracks in the walls – Although this may be just a result of natural home shifting, a crack in the wall may be a symptom of a larger problem. Vertical cracks are typically harmless. Horizontal cracks, or jagged cracks that run at an angle, on the other hand, deserve closer inspection. These may indicate foundation shifting or water damage.

Ceiling stains – Stains on the ceiling are common and indicate a problem somewhere above the stain. The problem may be a roof leak or defective chimney flashing, allowing rain and snow to seep through.

Ceiling stains may also indicate condensation. If the stain is near the bathroom's exhaust fan, condensation is most likely the culprit, and an uninsulated duct in the attic may be the cause.

Then, there is the obvious plumbing leak. If an upstairs bathroom is located above the stain there may be a leak in the tub, toilet or sink. Press your toes around the floor along the edge of the toilet's base. If it feels spongy, the toilet may be leaking. A home inspector has a tool to test a stain to determine if it is wet or dry. A dry stain means that the problem no longer exists while a wet stain means the problem persists.

Firewood piles – If you live in a region where wood-destroying pests are a problem, such as California, the Pacific Northwest and Michigan, a pile of firewood acts as a magnet for them. If that wood pile is stacked against the side of a house, there is a chance that the home may be infested with termites. A pest inspector is your best resource if you suspect there may be wood-destroying pest damage in a home.

Musty odors – Many houses contain hidden health hazards, and one of the biggest is indoor air pollution. Some pollutants, such as radon gas, are impossible to detect by smell and require the help of a professional. Others, such as mold, are sometimes either visually evident or you can smell them. Mold is one of the most common indoor air pollutants, and we inhale the spores every time we take a breath. If the air smells musty, there is most likely mold somewhere in the home. Hire a certified mold inspector to go through the home before signing on the dotted line.

Sticking doors and windows – Open and close all interior windows and doors in the house. If they stick and aren't painted shut, it may be an indication of the foundation shifting. Look at the top of the sticking doors for a gap. This is another indication of the same problem.

While you can never completely eliminate risk when you buy a home, you can reduce it by exercising "due diligence," another of those terms you'll hear bandied about during the home-buying process. Due diligence simply describes your duty to investigate the condition of the property before you buy it. Many homebuyers rely on professional home inspectors to fulfill this aspect of their investigation, and there is nothing wrong with that. By knowing what to look for, however, you can guide your home inspector to those areas of the home that you think require extra scrutiny.

One final note: Certain types of deferred maintenance may sabotage your mortgage loan during the appraisal. Something as simple as broken or cracked windows can hold up an FHA-backed loan, and signs of larger problems, such as water damage and suspected mold infestations may cause a lender to demand further investigation and even repairs prior to closing.

Little fixes boost home sales

To make more money, homeowners often times have to spend money.
MSN tackled the topic of home improvements this week in their real estate blog, Listed, which laid it on the line: Buyers will pay more for aesthetics.

 

Real estate agents and sellers prioritize repairs and aesthetic improvements that prospective buyers are likely to notice, such as upgrades to flooring, cabinets, fences and doors, says Matt Ehrlichman, chief executive of Porch, which tracks home-improvement projects.

"Just doing these minor things will help your house sell quicker and typically for more money," says Brad Carlson, a real estate agent with Better Homes and Gardens Real Estate Gary Greene in The Woodlands, Texas.

Carlson once had the listing for a three-bedroom home with dated brass fixtures throughout. The house sat on the market for more than two months with no offers until the seller finally agreed to swap the fixtures for more modern ones. Two days and $800 in new fixtures later, the home sold close to its listing price at $214,900.

The Porch analysis also tracked home improvements made six months after the homes sold. Over this period, the new homeowners took on meatier projects, such as water-heater replacements, plumping updates and sewer repairs, according to the data.

These projects don't appeal to potential buyers the same way that features like granite countertops do, says TJ Paradise, a real estate agent with Sotheby's International Realty in West Hollywood, Calif. Paradise estimates that sellers in his market spend $3,000 to $4,000 before selling their home, and new buyers invest roughly $20,000 after the purchase.

 
In rare instances, home sellers make hefty investments in improvements. Dan Dolan, a Chicago-area architect, is designing and will oversee construction of a roughly $150,000 addition to a home in New Jersey. The luxury home has a poor layout — the kitchen, dining room and living room are all on different levels — and has been on the market for more than a year. The home seller, who Dolan declined to name, is listing his home for $1.5 million.

Still, Dolan says homeowners seldom ask for full-scale renovations or additions right before listing their homes. "Brighten, update and repair," he says. "It's all the little things that are actually going to sell your house."

What every veteran should know about VA loans

Fans of late-night TV will recall the infomercials of a few years ago, hawking zero-down loans. Those loans, along with loans requiring no documentation, were being handed out like candy to anyone who applied, and were largely blamed for the mortgage industry implosion.

In the wake of that mess, mortgage lenders tightened standards. Lenders began demanding that homebuyers needed some skin in the game - a healthy down payment - to make them think twice about defaulting on the loan and in the process, zero-down loans became a memory.

Today, one of the extremely limited choices if you're seeking a mortgage without a down payment is the Department of Veterans Affairs (VA).

"The VA loan is the best mortgage around," according to Envoy Mortgage's Nathan Raich. "Not only will you not be required to make a down payment, there's also no mortgage insurance requirement, which makes the loan even less expensive. Finally, borrowers typically get a lower interest rate with a VA mortgage than with a conventional loan," he concluded.

Eligibility Requirements

Eligibility for a VA-backed loan includes what the VA calls "suitable credit" and sufficient income to make your payments every month. You'll also need a valid Certificate of Eligibility (COE), which in many cases your lender can obtain for you.

Separation from the service must have been under conditions other than dishonorable. Additionally, you must plan on occupying the home as your personal residence.

VA Entitlement

When buying a home for the first time, many veterans are confused by the process. One of the most confusing aspects of the loan is the VA entitlement. Basically, the entitlement is the amount of money that the VA agrees to pay the lender if you stop making payments and default on the loan.

Here comes the confusing part: The basic entitlement amount is $36,000, but there is a secondary entitlement as well - $68,250, according to Veterans United. The secondary entitlement kicks in only if the purchase price of the home you wish to buy exceeds $144,000.

How they come up with these amounts only causes more confusion, but it has to do with the amount that the VA guarantees, which is one-fourth of the loan amount.

Once you use the entitlement, it can't be used again until the loan is paid off or another veteran assumes the loan and uses his or her entitlement.

Loan Limits

Although the VA doesn't set loan limits, since it has limits on its liability (one-fourth of the amount of the loan), lenders may set a cap on the amount a veteran can borrow.

They typically set the cap, for a loan with no down payment, at four times the veteran's available entitlement as long as he or she otherwise qualifies for the loan, according to the Veterans Administration.

The Home-Buying Process

Other than VA-specific paperwork, purchasing a home using a VA loan is very much like purchasing a home with a conventional loan. Your first step will be obtaining loan preapproval. This is the step that requires your COE. You'll find a chart listing service requirements that need to be met for obtaining a COE at the VA website.

Once you have your preapproval letter in hand, it's time for you and your real estate agent to begin searching for a home. When you find a home, your real estate agent will insert a contingency in the purchase agreement stating that your offer is subject to final approval for a VA loan and a successful VA appraisal.

Your lender will obtain a VA number for your loan, which is used to track your loan application. The lender will also send a VA form to a state-licensed VA appraiser who will determine the home's current market value.

The VA has what they call minimum property requirements, or MPRs. Here are a few items the appraiser will be looking for:

• Adequate space for living, sleeping, cooking and dining, and sanitation.
• The safety of all mechanical systems. They must also have reasonable future utility.
• Hot water and a continuing supply of safe drinking water.
• A safe way to dispose of sewage.
• The roof must be free of leaks.
• Adequate attic access and ventilation.

These are the basic MPRs and, although it seems as if the appraiser is giving the home a thorough inspection, the appraisal does not replace the need for a home inspection.

The best place to get answers to your questions about a VA loan is at your lender's office or by calling a Department of Veterans Affairs Regional Loan Center.

Scoping out a Home: Is it the right fit?

Homebuyers enter the process with one of two mindsets. There are those who know what kind of house they want – the number of bedrooms and bathrooms, the type of kitchen and maybe whether or not they want a yard. Then there are those who know where they want to live, such as a specific school district or neighborhood, but haven't completed a wish list of home features.

Seldom does a homebuyer tell her real estate agent that she wants a "three-bedroom, two-bathroom home with a gourmet kitchen, a fireplace and a pool in the backyard, located on J Street in the Mountain Shadows neighborhood."

While it's important for your real estate agent to know what features you want in a home, "location, location, location" is just as important, important, important.

Even if you know exactly what you want in a house and perhaps have one picked out, it's important to scope out the neighborhood before committing fully to buying.

Don't Believe What You Hear

Especially when you are new to an area, it's easy to believe what residents tell you about the various neighborhoods. "When I was getting ready to move to Las Vegas 10 years ago I went online and read about the various neighborhoods," recalls Veronica Thomas. "The consensus seemed to be that Green Valley and Summerlin were the best places to live."

On a weekend trip to check out the areas in person, Thomas found that neither area suited her. "Green Valley was far too congested for me," she said. "Summerlin was way too far from my job on the Strip. I'd heard that both had low crime rates, but they weren't that much lower than some other areas that I found much more attractive," she concludes.

There is nothing quite like first-hand information. If good schools are important to you, do the research yourself instead of relying on what others consider "good."GreatSchools.org lists schools' test scores and features reviews from parents.

Crime statistics can also be found online. The FBI offers a nationwide Sex Offender Registry on their website and Neighborhood Scout claims that they "reveal the safety from crime for every neighborhood in America." Finally, call the police or sheriff's department in the area for more information on crime statistics.

Google maps will allow you to map a route from the new house to your job, to a particular school, or to the nearest shopping center and kick back the mileage and a rough estimate of the time it will take to get there.

A lot of your preliminary neighborhood research can be done online, but it's not a substitute for actually checking out the neighborhood in person.

Drive It

Number three on the list of the five biggest mistakes homebuyers make when choosing a neighborhood is underestimating or ignoring the commute, according to MSN Real Estate. Their advice is to actually make the commute during normal commute hours to see if it fits your lifestyle.

Drive through the neighborhood at different times during the day and evening, on both weekdays and weekends, looking for anything that may be considered an annoyance. Music blasting from a teenager's open bedroom window when you're trying to unwind after work may make you wonder why you bought a house in that neighborhood in the first place. Is the house under the airport's flight path? Kids – and all that they imply – may be a blessing or a curse, depending on how you feel about them.

If you don't drive, walk the neighborhood. Locate the nearest public transportation stop and see for yourself what the walk is like to the store and other local conveniences.

Check Municipal Records

Finally, check the neighborhood and surrounding area for anything that may impact the home's value. Look for:

A high number of foreclosures nearby.

Developments in the works.

Upcoming zoning changes.

Sure, it's important to fulfill those dreams of the perfect house for you. But the bigger picture - a suitable neighborhood in an area that fits your lifestyle – is just as important to your quality of life.

Living in Escondido: Beauty, Fun & Affordability

Sitting in a shallow valley just north of San Diego, Escondido is a serene environment surrounded by majestic mountains.

With so much to offer, the sector is only complimented by its close distance to San Diego, the second most famous city on the West Coast following Los Angeles. Between the beautiful scenery, idyllic locale, affordable home prices with generous-sized lots and much more, Escondido is a great place to live.

More than 30 neighborhoods make up the Escondido municipality, all of which are gorgeous, with freshly cut lawns and large lovely homes lining the streets.

Downtown Escondido is a prime location for premier dining and shopping, with specialty shops and eateries filling the sector. Whether grabbing a delicacy at Delight of France or having a facial at The Loft Hair Design & Skincare on Grand Avenue, residents enjoy the finer things in life here. Old Escondido, made up of mostly single-family houses, is a great place to live. With residents of all ages, the district is diverse with something always happening for both the young and old. No matter what part of town you live in from the highly-sought-after 92029 zip code to East Escondido with its stately developments, you are sure to love the entire environment.

The Escondido Union School District serves approximately 20,000 students in 17 elementary and five middle schools. For high school, youth attend the Escondido Union High School District, which serves more than 8,500 students in its comprehensive campuses that include Escondido, Orange Glen and San Pasqual High Schools among others. Of course, area students can train in any of the private elementary and high schools in the area that offer religious and specialized training.

Education proves to be part of the Escondido environment as stats prove more than 20 percent of residents have a bachelors or master's degree.

With the cost of living at seven percent less than the state of California, large lots, homes with ample square footage, buying and living in Escondido is a no brainer.

With so much to do in and around the area, locals live the good life in Escondido. Between the town's parks, playhouses and eating parlors and the close by city of San Diego, residents can stay in the region or drive just 35 minutes to the famous metropolis for fun.

With so much to do in and around the area, locals live the good life in Escondido. Between the town's parks, playhouses and eating parlors and the close by city of San Diego, residents can stay in the region or drive just 35 minutes to the famous metropolis for fun.

The town boasts 15 parks, not to mention the world-famous San Diego Zoo Safari Park is located in Southeast Escondido where you can view the animals with personalized and up-close safaris. Many make the most out of seeing shows at the California Center for the Arts located just across historic Grape Day Park and City Hall. Events in Escondido keep locals busy as thousands attend the Downtown Escondido Farmer's Market or the seven-month-long Cruisin' Grand weekend street fair, as well as the numerous city events and fairs hosted in Grape Day Park and along popular Grand Avenue.

ESCONDIDO FUN FACTS

• As of 2012, Escondido's population is 143,911 people. Since 2000, it has had a population growth of 9.86 percent.

• The median home cost in Escondido is $261,500. Home appreciation the last year has been 2.41 percent.

• Compared to the rest of the country, Escondido's cost of living is 26.20% Higher than the U.S. average.

• Ranked #2 Drought-Riskiest Cities

• Ranked #2 Best-Rested Cities 2011

• Ranked #2 America's Most Playful Cities

• Ranked #3 Sleep in the City Study

• Ranked #3 America’s Best (and Worst) Cities for Dating

A St. Joseph Burial: Calling in a miracle to sell a home

I dug a hold and placed a man inside today.

Now, don't be shocked. It isn't what you think, but certainly, it wasn't what I woke up expecting to do.

Today, in admittedly, a very Catholic spiritual faithful sort of way, I buried a statue of St. Joseph near a For Sale sign in front of a home that I have been trying to help sell for a co-agent.

For four weeks, this beautiful, well-kept 4 bedroom, 2 bath home has been on the market in South Escondido. Every week, I have hosted an Open House no less than three times ... each week. At least one to two times at lunchtime on weekdays and every weekend. The price is right, not necessarily competitive, but it is below the home's appraisal and still it hasn't sold. The home is on all the major sites, Zillow, Trulia, the MLS, Realtor.com and the like. It is well-staged and everyone who walks in has nothing but glowing, positive things to say about this home. Yet, not even one single offer has been made.

During today's Open House, my broker and the home's listing agent dropped off a St. Joseph statue. I think for fun, but my Catholic faith made me sit and stare at this statue and wonder. I searched Google and read up on St. Joseph, the patron saint of family, home sellers and realtors, among others. 

Apparently, the petition to Jesus' earthly carpenter father is supposed to bring a sale when you bury him in the property's yard and of course, say a prayer. I even might throw in a novena to St. Joseph, just in case that might speed the offers along.

There were a variety of suggestions concerning how to bury St. Joseph, where to bury the little statuette and even what prayers to say, but I chose the most commonly known traditions.

For his burial site, I picked the front yard near the For Sale sign. I buried him about six inches from the surface and placed him upside down. I said two prayers. The first I said before the burial got underway. It was of my own wording in which I requested his divine intercession. After I was done well ... begging, we started the digging. I found a trowel and went to work in their front flower bed near the For Sale sign. He went in headfirst. It felt, honestly, quite disrespectful to this very revered man who helped make Jesus well, priestly, but I was going on faith. Like George Michael and my priest say, "You got to have faith."

Afterward, we read the standard prayer to St. Joseph. I'll put it below just in case any realtors or home sellers want to give a St. Joseph burial a shot.

I went inside and washed my hands and got the dirt out from under my fingers. Less than five minutes later, a couple walked in and although they didn't leave saying their offer would be in tonight, it gave me hope.

Maybe, just maybe, St. Joseph heard my prayers and he would bring this home's next family to the doorstep.

God willing, my next post will be an update to this one declaring St. Joseph burials to be the sure way to get a home sold.

The Top 10 Hottest Markets

Fascinating news this week out of Realtor.com.

Where are homeowners celebrating? Where are prospective buyers driving up prices? To answer these burning questions, we looked at markets with the largest year-over-year median home price increases.
According to Realtor.com data, Stockton, Calif., topped the list with a whopping 38.9 percent increase in median price in the last 12 months. The other nine metropolitan areas in our top 10 all notched gains above 20 percent, making them the hottest places to buy. Understandably out of the 10 hot hot hottest places to buy, six of them are in California with three being in our own backyard of So Cal. That's right, everyone seems to know to Come Home to So Cal.

10. Denver

• Square feet: 2,794
• Bedrooms: 5
• Bathrooms: 2
• Price: $520,000
• City's median home price: $329,000 (+19.6 percent since 2013)

Spanish style in the Mile High city? Why not? This charming casa is listed at $520,000 and offers details aplenty for any Denverite looking for something different.

9. Los Angeles

• Square feet: 3,200
• Bedrooms: 4
• Bathrooms: 3
• Price: $1.895 million
• City's median home price: $449,999 (+20 percent)

This modern stunner in the Hollywood Hills is listed well above the median at $1.895 million, but you’ll be comforted by the fact that you’re buying into a booming market in Southern California.

8. Bakersfield, Calif.

• Square feet: 2,036
• Bedrooms: 2
• Bathrooms: 2
• Price: $183,990
• City's median home price: $179,999 (+20.1 percent)

What can you get on the streets of Bakersfield for the median price? How about a brand-new home?

7. Fresno, Calif.

• Square feet: 1,860
• Bedrooms: 3
• Bathrooms: 2
• Price: $369,500
• City's median home price: $229,000 (+21.2 percent)

Fresno saw a healthy jump in home prices in the past year. You’ll jump when you see the price on this newer home in a gated community. Listed for $369,500, the house offers three bedrooms and two bathrooms.

6. Orange County, Calif.

• Square feet: 7,350
• Bedrooms: 7
• Bathrooms: 5.5
• Price: $3.398 million
• City's median home price: $599,900 (+23.7 percent)

In Orange County, we picked a mansion that would make any "real housewife" happy. This huge home in Anaheim Hills, Calif., is listed at $3.398 million, and for that price tag you will have three acres to play on.

5. Riverside, Calif.

• Square feet: 1,536
• Bedrooms: 4
• Bathrooms: 3
• Price: $294,900
• City's median home price: $292,800 (+24.6 percent)

Coming in right near Riverside’s median price, this cute triplex built in 1920 allows you to play landlord.

4. Detroit

• Square feet: 3,093
• Bedrooms: 4
• Bathrooms: 2 full, 2 half
• Price: $129,000
• City's median home price: $119,900 (+26.3 percent)

Detroit’s problems have been well-documented, but the median home price made a stunning leap in the past year. Even with the big gains, this colonial charmer has been listed for only $129,000.

3. Reno, Nev.

• Square feet: 2,088
• Bedrooms: 3
• Bathrooms: 2.5
• Price: $484,000
• City's median home price: $259,900 (+26.8 percent)

At $484,000, this home at 3850 Royer Court is above Reno's median price. But the contemporary style and brilliant city views might be worth the splurge.

2. Las Vegas

• Square feet: 1,889
• Bedrooms: 4
• Bathrooms: 2.5
• Price: $179,000
• City's median home price: $177,500 (+26.9 percent)

We found a Vegas home right around the median price. What will $179,000 in Sin City get you? You will find a home far from the bright lights of the strip at 5128 Blossom Ave. The two-story home offers about 1,900 square feet of living space with four bedrooms and 2.5 bathrooms.

1. Stockton, Calif.

• Square feet: 5,183
• Bedrooms: 4
• Bathrooms: 6
• Price: $599,000
• City's median home price: $248,600 (+38.9 percent)

This home on 415 W. Park Lane is roughly double the median price of a Stockton home, but its size and pedigree merit a look from anyone hoping to capitalize on the red-hot Central Valley real estate market.

Up or Down? Real Estate Market Forecast for 2014

Whether you are a prospective buyer or seller, the question is the same - Should I wait to... buy/sell?

Buyers typically are hoping prices will inch downward again, while sellers are trying to get the most money out of their home sale. Both absolutely valid concerns.

Recently during a real estate seminar at the San Diego Association of Realtors in Kearney Mesa, four seasoned real estate professionals set out to answer these concerns.

Overwhelmingly, they predict home prices will rise in 2014 by four to six percent, while in 2015 they will rise at an even greater rate.

"Buy now before the rocket takes off," said SDAR Board of Directors President Leslie Kilpatrick who works with Willis Allen Real Estate.

Very little inventory and a large amount of buyers make it a seller's market right now, at least in San Diego County, and although it seems like bad news for buyers, there is a silver lining.

Interest rates are still at low rates. It might not be the average 3.34 percent seen in 2013 for the average 30-year-fixed mortgage, but at the current 4.53 average, it is still low in comparison to the historical average for a 30-year fixed is about 7.5 percent.

Not to mention, rents are expected to rise by a drastic 20 to 30 percent by the end of 2014, according to Charles Hoffman President with ACI Apartments and speaker at the SDAR seminar.  

All in all, the time to act is now. These real estate magnates all agreed we, real estate agents, must encourage buyers and sellers alike to get off the fence before prices go up even further because regret isn't a feeling agents want you to have after our work together is complete. We want you to enjoy the buyer and/or selling experience and be happy with your choices and with the guidance we provided.

Good luck in your real estate path wherever they lead.

Choosing YOUR home: Steps toward homeownership

This is Part Three in the series - Steps to Homeownership

The fun part of home buying is beginning... time to shop.

By now, you've gone through the anxiety-ridden decision to buy and the tedious pre-approval and pre-qualification process. Armed with your price range, it's now time to determine your wish list and not just the if price were no limit wish list. You need to consider what your needs are versus what your wants are. Here are a few of the homebuying parameters you should narrow down before you begin the search.

Settle on neighborhoods

Decide where you want to live. A great place you can get started is on my website, www.ComeHomeSoCal.com, where you can research market stats, crime reports and feeder schools by zip code. Another great site to determine school rankings is www.GreatSchools.org. Determine a few neighborhoods where you would like to live and let your real estate know the verdict. He or she can set you up on the MLS database to receive daily listings of all the homes in your price range and areas with the number of bedrooms and bathrooms you desire.

Narrow the wish list

Your wish list can help to remind you which features are absolute requirements and which amenities you'd like to have. Some things to consider types of homes and home purchase considerations.

Types of homes: Single-family homes, multifamily homes, town homes or condos, etc.

• Single-family homes, being the most common, is a freestanding dwelling and can also be referred to as a detached home.
• Multifamily homes can provide rental income that can help in the cost. They can also be called duplexes, triplex and quadraplex. Many mortgage plans, including VA and FHA loans, can be used for buildings with up to four units, if you, the buyer, intends to occupy one of them.
• Condominiums are another choice and with a condo, you own "from the plaster in" just as you would a single house. You also own a certain percentage of the "common elements" - staircases, sidewalks, roofs and the like. Monthly charges pay your share of taxes and insurance on those elements, as well as repairs and maintenance. A homeowners association administers the development.

Home purchase considerations

• You should definitely weigh your needs, budget and personal tastes in deciding whether you want a home that’s a newly constructed home, an older home or a home that requires some work -- a "fixer-upper."
• How many bedrooms do you need versus want? Square footage? Amenities, such as a pool, fireplace, garage, etc. Decide what are your must-haves versus your wants. 

Bottom line is you and your family. It is currently a seller's market. There isn't much inventory out there and there are many, many buyers searching. During this process, it's important not to lose hope. The right house will come but with this market, it might take time and sometimes it will take no time at all. 

When you've found the right home, you must act quickly. In a seller's market houses go quickly and many times same day, so when you see your dream home, don't let it get away. Work with your real estate agent to make sure that house will become your future home.

Happy hunting.

This is Part Three in the series - Steps to Homeownership

Part One: The Big Decision - Are you ready for homeownership? and Part Two: Discovering your price range: Steps to Homeownership can be seen below or https://katyschusterrealtor.blogspot.com

Discovering your price range: Steps to Homeownership

This post is the Part Two in a series - Steps to Homeownership

You've made the decision to become a homeowner and now, it's time to take the next step - qualifying for a mortgage.

Here are some key pointers to keep in mind as you undertake the process of qualifying for a loan and shopping for your first home.

760 is the key for credit that is.

Once you reach a credit score of 760 that is when the magic happens. It opens up the most loan options and those low, low interest rates. 760 is where you want to be.

Now, I'm not saying that if your credit score is below 760 you won't qualify for a loan. Even if you have a poor credit score, you can still qualify but you might pay more for it in terms of higher interest rates and only one or two loan options.

But if you start working on your credit now, you can fix it all and erase the past.

Start by visiting myFICO.com. This site will help you obtain your true credit score. If you're buying with your partner or spouse, you might want to consider qualifying for a mortgage using whoever has the lower credit score. If you try to go in together, many banks, mortgage companies and lenders will base the rate on whoever has the lower, less attractive score.

Also, you should pull a free copy of your credit reports at AnnualCreditReport.com. Make sure there are no surprise delinquencies lowering your credit worthiness. If there are, many times they'll be small bills of a medical nature. Get those paid off pronto before you apply for a mortgage.


Save, save and save some more. 

Buying a home is costlier than you might imagine. Traditionally, to get your foot in the door, you'll need a down payment worth 20 percent of the home price, however if you are a First Time Home Buyer, you can get away with a 3.5 percent down payment through the FHA Loan Program, all of which can be gifted money. This route offers the ability to bring the least amount of money to the closing table possible.

There are other ways to get around that steep 20 percent requirement with zero- or low-down loans, but those options can cost and you might have to pay extra for private mortgage insurance or take out a piggyback loan with a much higher interest rate.

Not to mention, closing costs. You'll need money to put at least 3 percent, but sometimes as much as 6 percent toward closing costs, although you can absolutely negotiate who pays closing costs (buyer or seller or between the two.)  

Pre-qualify or better yet - Get pre-approved.

It's very important to pre-qualify or get pre-approved for a mortgage before you start the formal shopping process. By doing this, you can get an idea the home you can afford and what the monthly payment will look like.

If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about price ranges, but does not assess your creditworthiness. You will need to fill out a loan application and go through the lender's loan approval process at a later date.

You could also become pre-approved for a loan. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender's pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender's appraisal of the home to confirm its value.

Why is pre-approval important at the beginning of the home buying process?

Pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question. And yes, it is still somewhat in question when you are choose to go the pre-qualified route.

I and the team at J&M Real Estate do have a recommended lender who we know and trust. I would be more than happy to share that information with you. Just shoot me an email, give a call or leave a comment.

Plan to stay put for years.

Real estate is an investment, but only if you buy and hold. Plan to stay in your new home a minimum of five years, but more like seven before you up and sell. Generally, that is the least amount of time it takes for real estate value to recover and for you to have a good amount of equity.

And most of all.... enjoy hunting.

Buying a home doesn't have to be stressful if you choose a real estate agent and lender who you trust and like. So, find the right person for you and shop your heart away. Go out and find your perfect place.


This post is the Part Two in a series - Steps to Homeownership
Part One - The Big Decision: Are you ready for homeownership? was the first post in the series and can be viewed below.

The Big Decision: Are you ready for home ownership?

This blog post is Part One in a series - Steps to Home Ownership.


Buying a home can be intimidating, lengthy and riddled with anxiety, but if you take the right steps it can be a smooth-sailing and even pleasant process.

 Is the time right? Am I ready for home ownership? What can I afford?

These are just a few of the many questions that might be floating in your mind as you begin what can be the most difficult and overwhelming step in the process toward home ownership - The Decision.

As you begin to consider buying, here are some of the questions you should ask yourself to determine if the time is right for you.

1. Do you budget your finances?
This is one of the biggest financial decisions you will ever make, so approach it like you're making a business decision.

If you're the type that you already have a budget in place, then you're off to a running start. Good money management skills are key to owning a home. When the faucet leaks or the yard needs tending, it's on the homeowner. No longer is there a landlord with an emergency hotline. Not to mention you have to factor in taxes and possibly HOA fees and Mello-Roos. There's no way around it. Owning comes with it expenses.

If you don't have a household budget right now, start one. You need to know where you are financially — where your money is coming from and where it goes every month — to know exactly how much you can afford to spend on a new home.

2. Can you afford the down payment?
Traditionally, to get your foot in the door, you'll need a down payment worth 20 percent of the home price, however if you are a First Time Home Buyer, you can get away with a 3 percent down payment through an FHA loan, all of which can be gifted money.

There are ways to get around that steep 20 percent requirement with zero- or low-down loans, but those options can cost and you might have to pay extra for private mortgage insurance or take out a piggyback loan with a much higher interest rate.

Also, don't forget to consider moving expenses and closing costs, which are typically about 3 percent of the purchase price.

3. Is your income reliable?
Buying a home is a long-term financial commitment, so you'll need consistent cash flow to cover those monthly payments — not to mention the little extra expenses that come with homeownership. If you're in school, plan to go back to school, have a less-than-reliable job or plan to start a family, you need to take a good look at your future cash-flow abilities. Will you be able to make your mortgage payment six months from now? Let's try six years? If you're married and planning on kids, will one of you want to stop working when you have children? If so, make sure you will be able to afford the home on one income.

4. Do you have the resources and time to maintain a home?
Homes require upkeep. You'll have a lawn to mow, windows to wash, furnace filters to replace, and you may need to tend to minor repairs from time to time and possibly even major ones, as well. Make sure you are prepared for all the responsibilities that come with owning.

If after examining your life plan and your financial scenario, you're still ready to start a home search, then go at it. Just make sure you are honest in your answers that way you know the time is right and that you're ready for the next step: Discovering your Price Range.


This blog post is Part One in a series - Steps to Home Ownership.

Give your home a Wow Factor from the curb. Five tips that won't break the bank

Improving your home's curb appeal is an instant way to boost its wow factor. Plus, it gives you that great first impression to enchant a home buyer and make them fell in love ... at first sight.

I know what you're thinking though - How much will it cost me? When selling your home, expenses can mount up - professional home and carpet cleaning, moving expenses, commissions, taxes, buying your next house, among others. Giving your house curb appeal doesn't have to be one of them though. There are a few things you can do that will go far to giving it instant appeal for very little money.

1. Glam the front door.
A fresh coat of paint and some new, larger numbers to highlight your home address is one of the easiest and most affordable home improvements you can do that goes a long way to making your home stand out from the street. Consider painting the front door with a pop of color. Seeing a deep red or dark green door really makes a home stand out. Make sure the paint color you choose goes with your home's exterior color palette. Deep red looks great with creams, whites and blacks while green looks good with greys and whites. For a fun read on front door paint colors, click here.

You can also add style and interest by updating your house's address hardware. Again make sure that the numbers you choose for the address keep in line with your house style. Oiled-bronze finishes work well with traditional homes. Brushed nickel looks great with more contemporary styles.

2. Tend your beds ... your flower beds.
Trim the shrubs and hedges, weed the flower beds and put in some color with some beautiful vibrant annuals or perennials. A beautiful flower bed will help to draw buyers in. Start with weeding your flower bed and cleaning up any debris. Grab some mulch from your local home improvement store. Mulch goes a long way to give it a fresh look without requiring much upkeep. Finally add some color to your existing plants with some flowers. Pansies, impatiens and petunias are all low-cost flowers that have long-lasting blooms.

3.  Manicure your lawn.
A beautiful, well-manicured lawn sets the mood. Grab the lawn mower and edger and with just a little bit of sweat and absolutely no dinero, you've got a beautiful yard that invites buyers to look inside. Tip though, make sure and edge after you mow, it goes a long way to making a look that compliments the house and improves its appearance without spending.

4. Make the windows sparkle; Clean up the exterior.
Get rid of the dirt that can make your home look dingy. Giving the windows a good clean will make them sparkle and giving the entire house a high-powered wash with your water hose will remove any dirt and give it that sparkle that will really resonate. Your garden hose should be able to do the job by turning it to its strongest, most powerful setting. Of course, renting a high-powered hose is an option but not necessary.

5. Tidy up your driveway and the entire front.
Weeds can sometimes find a way to peek out from cracks in the driveway. Some weed killer will help take care of unwanted greenery in the driveway and allow you to get them out of there for good. Plus, consider concealing your trash and recycling containers behind the fence or on the side of the house where they won't be seen from the street. Don't park your car in the driveway while your home is on the market. It might give potential buyers the wrong impression about the storage space in the garage. Park in the garage or down the street for that added zing. Also, if there are any toys, bikes or other items in your front lawn or patio, stow them in the garage. Tidying and getting rid of any clutter in the front makes a big impact.

Improving your curb appeal doesn't have to break the bank and first impressions are everything when it comes to buyers. Good luck selling! I would love to hear from you. Post a comment or shoot me an email.