The Lawhead Team would like to share the latest One Cool Thing about outdated advice you want to make sure you don’t follow when it comes to buying or selling a home. 

People who’ve gone through the homebuying process are often eager to give advice. Unfortunately, sometimes that advice is outdated.

Check out some of the most common advice you may hear, which no longer applies given the current market:

• Wait For Spring – Waiting for the busiest season in real estate won’t always give you an advantage. Yes there may be more houses available but there’s also going to be more competition. Instead, buy when you find the right property that will meet your needs for the day – and the next five to ten years!
• Wait For Home Prices To Come Down – Some buyers may be told to wait until home prices come down before jumping into the market. But it’s important to remember that rents are likely also high. Paying high rent now and hoping you’ll find a better deal later won’t work. 
• Make A Lower Offer So You Have Room To Negotiate – You may hear to make an offer that’s less than what you’re actually willing to pay so you can negotiate. A truly motivated seller is less inclined to engage in the back and forth. Instead base your offer on sales of similar homes in the area. 

Be sure to talk to your REALTOR about the best approach to buying a house in today’s market.

The Lawhead Team would like to share the latest “One Cool Thing” about California renters and their dream of making homeownership happen.

Despite affordability challenges, California renters continue to hold homeownership in high regard and aspire to purchase a home eventually.

Advantages of homeownership, according to renters:

• 21%: provides a good long term investment
• 19%: gives them the freedom to do what they want with their home
• 12%: allows stability to plant roots

What’s hindering renters from homeownership:

• Only 40% of renters are familiar with the credit and loan criteria needed to purchase a home.
• 14% of renters are under the impression that more than 50% down payment is needed to purchase a home.
• Nearly 40% of California renters believe that more than 20% is required to become a homeowner.

These misconceptions result in many renters delaying their home purchase or possibly giving up on the dream of homeownership. If you’re a renter, talk to your REALTOR to find out how you can become a homeowner.

Source: CAR 2018 State of the California Consumer Survey

If you are looking to purchase a home, check out the latest One Cool Thing to find out what the must have essentials are in a home.

When it comes to choosing a home to purchase, which amenities are non-negotiable and which ones are nice to have? These are the top five essential amenities home shoppers say are must-haves in a home.

• 82% must have central AC or heater
• 58.5% claim a private patio or backyard are essentials for a home
• 41.9% say the home must have a guest bedroom
• 32.2% must have a walk in closet in their home
• 31.7% claim the home must face in a good direction

What essentials must a home posses for you?

The Lawhead Team would like to share the latest “One Cool Thing” about surrounding school rankings and how they influence choosing a home to buy.

When it comes to choosing a home, the ranking of a school is very important to consumers of all ages and income levels. Here’s how people perceive the importance of highly rated schools:

• 47% consider the rating of surrounding schools very important
• 23% consider it somewhat important
• 11% feel that school ratings are not very important
• 19% feel that surrounding school ratings are not at all important

43% of consumers age 34 or under believe highly rated schools are very important while 58% of consumers earning more than $100,000 think highly rated schools are very important.

Looking to simplify your home buying process? It is important to work on getting your financing ducks in a row before looking for a home.

Check out the latest “One Cool Thing” from the California Association of Realtors about seeking financing when buying a home:

Most home buyers are following their realtors advice and seeking financing first in their home buying journey. They also want greater speed, simplicity and communication from their providers.

• 73.5% sought out home financing options before looking for a home.
• 75.4% said their agent and lender communicated with each other about their home buying process.
• 49.5% desire a faster or easier home buying experience.
• 34.1% had trouble understanding mortgage fees.

Source: loanDepot and mellohome

The Lawhead Team would like to share the latest One Cool Thing about “Military Members On A Home Buying Mission”.

Did you know active-service military members and veterans make up the smallest group of homebuyers?

Of all home buyers, 2% are active-service military, 17% are veterans and 81% are non-military. Check out what they are purchasing and how:

Active-Service Military Buyers –

• 50% are first time home buyers
• 68% are first time sellers
• 56% completely financed their home with no down payment
• 77% of active-service military buyers use a VA loan to buy their home
• 15% used a conventional loan to buy their home

The average home for active-military home buyers are a 4 bedroom, 2 bath house approximately 2,050 square feet.

Military Veteran Buyers –

• 19% are first time home buyers
• 26% are first time home sellers
• 41% military veterans completely financed their home with no down payment
• 58% used a VA loan to buy their home
• 66% of military veterans use a conventional loan

For military veteran buyers, the average home they bought was a 3 bedroom, 2 bath house with approximately 1,960 square feet.

Non-Military Buyers

• 35% are first time home buyers and 39% are first time home sellers.
• 39% non military buyers are first time sellers.
• 7% completely financed their home with no down payment
• 66% used a conventional loan to purchase their home.

The average home for a non military home buyer is a 3 bedroom, 2 bath house with 1,870 square feet.

Source: National Association of Realtors.

The Lawhead Team would like to share the latest One Cool Thing about HOA‘s and how they protect home values:

69 million Americans live in 342,000 common-interest communities and the majority of owners say Homeowners Associations (HOA‘s) protect home values. Find out why:

• 90% say association rules protect their investment and enhance property values.
• 73% believe their community managers provide value and support to residents and their associations.

The best aspects of living in an HOA community are:

• Clean or attractive neighborhood
• A safe neighborhood
• A maintenance free neighborhood
• Having the association help maintain property values

And the worst aspects of living in a HOA community are:

• Restrictions on exterior home improvements
• Paying dues

Source: Community Association Research

The latest One Cool Thing from Coldwell Banker has some helpful tips for California homeowners about lead based paint.

The Lawhead Team would like to share this great information to help all home buyers! 

Down payment money is the number #1 obstacle for buyers!

Qualifications

What do you need to qualify to buy a home?

• Income verification
• Property type
• Home price
• Is it a primary residence?
• Take a homebuyer education course
• Are they are first-time buyer?

Available Programs

Did you know down payment assistance programs help buyers lower monthly payments and provide cash at closing?

These come in many forms:

• Grants
• Mortgage Credit Certificates
• Matched Savings & Development Accounts
• Housing Finance Agency Boards
• Second Mortgages
• Housing Vouchers, Employer Assistances, etc.
• Programs for Veterans & Public Service Employees (Educators, Fire Fighters, Police, etc.)

The Lawhead Team would like to share the C.A.R.’s latest One Cool Thing about delayed settlements on home sales.

While the majority of home sales close on time, there are some that are delayed or cancelled altogheter. Here are the 5 most-common reasons for a delayed settlement.

• 32% – Issues related to obtaining financing
• 20% – Appraisal issues
• 16% – Home inspection/environmental issues
• 11% – Titling/deed issues
• 6%  – Contingencies stated in the contract

Source: NATIONAL ASSOCIATION OF REALTORS REALTORS Confidence Index