The Lawhead Team would like to share the latest One Cool Thing from the CAR about housing prices for would-be buyers.

With interest rates and home prices rising in the first half of 2015, housing affordability remains an issue for many would-be buyers.

• 30 % – The percentage of buyers who could afford to purchase a median-priced, existing single family home declined in the second quarter.
• $485,100 – Statewide median-priced, existing single family home in the second quarter of 2015.
• $96,160 – The minimum annual income needed to qualify for the purchase of a median-priced, existing single-family home.
• $2,404 – The monthly payment, including taxes and insurance, on a 30-year, fixed-rate loan.*

*assumes a 20% down payment and an effective composite interest rate of 3.9%.

Source: CALIFORNIA ASSOCIATION OF REALTORS

The Lawhead Team would like to share the latest “One Cool Thing” from the California Association of Realtors on the impact that home staging has on a house for sale.

Most homeowners know it is important to keep a home clean, bright, and free from clutter while it is on the market for sale. But, sometimes taking the extra step to stage a home can make a difference in how a buyer values it and the price a seller might get for it.

49% of REALTORS® representing buyers say home staging impacts most buyer’s final decision.

Top reasons a buyer’s decision is impacted by a staged home

• 81% – Easier to visualize the property as a future home
• 46% – More willing to walk through a home viewed online
• 45% – Will positively impact home value of home if decorated to buyer’s taste
• 28% – Overlook other properly faults
• 10% – Will negatively impact home value if decorated against buyer’s tastes
• 5% – More suspect of home features

Source: NATIONAL ASSOCIATION OF REALTORS® 2015 Profile of Home Staging

When it comes to buying a home, the majority of buyers agree they need a Realtor® to negotiate for good prices and better terms of sale.

Did you know 88% of home buyers have used a Realtor® in 2014?

Here’s what else a Realtor® can do for you:

• 79% of home buyers used a Realtor® to find the right home for them.
• 75% of home buyers used a Realtor® to negotiate the price for them.
• 60% of home buyers used a Realtor® to negotiate the terms of the sale for them.
• 56% of home buyers used a Realtor® to determine the comparable sales for them.
• 30% of home buyers used a Realtor® to determine the affordability of the home they could buy.

Source: California Association of Realtors® “One Cool Thing” from the 2014 Survey of California Home Buyers.

The latest “One Cool Thing” from the California Association of Realtors’ brought to you by The Lawhead Team – Social Media Use Is On The Rise.

From searching for home-buying tips to looking for an agent referral, buyers are increasingly using social networking tools to aid in the home-buying process.

Percentage of California buyers using social media:

• In 2011, 52% of buyers were using social media.
• In 2012, 68% of buyers were using social media.
• In 2013, 75% of buyers were using social media.
• This year, in 2014, 77% of buyers are using social media to find a home.

What are buyers using social media for?

• 44% are using social media for buying tips and suggestions from friends.
• 44% are using it to get neighborhood information from friends.
• 42% of buyers use social media to check out an agent’s Facebook Page. Are you consistent with updating yours??
• 35% of buyers are using social media for agent referrals.
• 23% use social media to obtain home buying info and tips.
• 23% also use social media to check out neighborhood profiles.
• 20% of buyers use social media to check out an agent’s YouTube profile.

How much do you use social media when it comes to buying or selling a home?

California Association of Realtors recently shared their One Cool Thing reporting the increase in home prices and the benefits it has on home sellers.

The report took sellers opinions on home prices for 2012 and 2013. The following reflects the survey taken in 2014:

• Only 9% of home sellers thought home prices would rise in one year.
• Only 12% of home sellers thought home prices would rise in five years.
• Only 20% of home sellers thought home prices would rise in 10 years.

The following reflects the survey taken in 2013:

• 43% of home sellers think home prices will rise in just one year.
• 58% of home sellers think home prices will rise in the next five years.
• 74% of home sellers think home prices will rise in 10 years.

The reasons for selling were much more positive in 2013! The number one reason for selling in 2012 were due to financial difficulties. The number one reasons for selling in 2013 was because the time and price were right for moving up!

Home sellers are feeling excited about home prices and they anticipate they will get more for their homes in the next few years. Visit the California Association of Realtors “One Cool Thing“.

Wonder how often homes were sold for more than the asking price?

The Lawhead Team would like to share the latest “One Cool Thing” from the California Association of Realtors®.

Just exactly how often were homes sold for more than the asking price? See below to find out!

• In 2005 about 37% of homes were sold above the original asking price.
• In 2006 about 12% of homes were sold above the original asking price.
• In 2007 about 11% of homes were sold above the original asking price.
• In 2008 about 10% of homes were sold above the original asking price.
• In 2009 about 21% of homes were sold above the original asking price.
• In 2010 about 28% of homes were sold above the original asking price.
• In 2011 about 16% of homes were sold above the original asking price.
• In 2012 about 26% of homes were sold above the original asking price.
• In 2013 about 50% of homes were sold above the original asking price.

2013 saw an all-time high of 50%! This is the highest ever recorded!

Source: California Association of Realtors® Annual Housing Market Survey.

The California Association of Realtors® “One Cool Thing” recently sent out a diagram of where exactly your home’s water is being wasted.

A typical three bedroom, single family home in California uses approximately 174,000 gallons of water a year!

Here is where most families are using that water:

• Kitchen and bathroom faucets – 9%
• Shower – 17%
• Toilets – 4%
• Clothes Washer – 4%
• Landscaping – 57%
• Overwatering – 9%

Did you know approximately 1 gallon of water equals $10? The following is a cost breakdown for the water used in your home:

• Low flow toilets save 6.4 gallons per flush and cost anywhere from $60-$200.
• Faucet aerators save 1.5 gallons per minute and only cost $2.
• Low-flow shower heads save 2.5-3.5 gallons of water per minute and only cost anywhere from $10 to $40.

The California Senate Bill 407 states that by January 1, 2017 all residential properties in California that were build prior to 1994 will be required to retrofit with the following:

• Toilets that use no more than 1.6 gallons of water per flush.
• Shower heads with flow rates of no more than 2.5 gallons per minute.
• Other interior fixtures that use less than 2.2 gallons of water per minute.

Source: California Association of Realtors® and the California Homebuilding Foundation.

The California Association of Realtors provides their One Cool Thing which shares valuable information pertinent buying a home.

Here are the Top Questions To Ask When Buying a Home:

1. Where is the seller’s disclosure? Even if you are in love with the home, be aware of all its flaws.
2. What is the home’s zoning guidelines? This is especially important if you want to make any structural changes to the house.
3. What home inspections are available? To avoid costly problems down the line, get as many types of inspections as you can.
4. Why is this house for sale? This simple question may provide useful insight when writing your offer.
5. Has the property been tested for radon? This is another question that can be a life saver, literally.
6. Are smoke detectors properly installed and located? Make sure you account for this crucial detail.
7. Has this home ever had a mold inspection? If so, looking at the inspection may provide important details about the home’s history.
8. What is the neighborhood’s crime rate? This can be easily looked up online, but getting a local’s take may be even better.
9. What is the neighborhood noise level? It is important to learn, before you buy, if you live next door to a nightmare drummer.
10. Are there many kids or dogs in the neighborhood? This will either be a positive or a negative, depending on your home buying desires.

Click Here to view this info in your browser. Source: California Association Of Realtors.

The California Association of Realtors shares some helpful home ownership insight on the income effect of native born and foreign born homeowners.

Income Effect on Home Ownership – Between the foreign born and native born population, those born in the U.S have the advantage of established networks, and no language barrier to have a higher median household income. Accordingly, the native born population is more likely to own a home than the foreign-born population. 

Furthermore, a large income gap exists between the foreign-born who are naturalized citizens and those who are not. Those who are U.S citizens nearly have twice the median household income of those who are not citizens. Numerous factors such as language barriers, lack of network and difficulty in obtaining a mortgage can account for the large income gap between the two categories of the foreign born population. Accordingly, the trend follows in home ownership rate.

Naturalized immigrants had a home ownership rate of 63 percent in 2011 in the state, while non U.S citizen immigrants had a mere 28 percent rate. Interestingly, if only comparing the native-born and the naturalized foreign-born, the latter had a higher home ownership rate than the former in 2011.

Length of Stay –  Examining immigrants by their length of stay suggests that the longer an immigrant lives and assimilates in the U.S, their likelihood of home ownership increases.  In 2011, immigrants who have been living in the country for more than 21 years have a home ownership rate that surpasses U.S-born citizens. Comparatively, immigrants who have been in the U.S for less than 11 years are two-third less likely to own a home.

Immigrants who have had more than 10 years of residency in the country on average earn nine percent more than those who have entered in the year 2000 or later. For those with more than 20 years of residency, on average earn more than 20 percent than those who entered after 1990, and about 30 percent more than immigrants entered in the year 2000 or later.

As an immigrant increases their length of stay, they become more assimilated, increase the expansion of their network, and gain more experience in the local area. Therefore, length of stay increases skill acquisition, raising their average income and thereby making home ownership more financially feasible.