The Lawhead Team would like to share the latest One Cool Thing about calling in the experts when it comes to home purchase inspections:

When purchasing a home, one of the most important steps are the home inspections. While this will tell you a lot about the house, there are some items that a home inspector simply cannot evaluate.

• Evaluations of pools or septic systems: Inspectors are not certified to inspect everything in a home. A pool inspector or an expert on septic systems or wells may need to conduct more thorough inspections of some areas in the home.
• Hidden flaws: Inspectors check for what they can physically see without having to move anything. So, they may not be able to say whether the foundation is cracked behind the wood paneling or an electrical plug behind a sofa isn’t working.
• Termites, rats or mold: Most inspectors aren’t licensed to determine whether these types of infestations exist. Instead, they may note evidence of things such as sagging floors (termites), shredded insulation (rats), or black discoloration on the walls (fungal growth), which could indicate problems.
• Unnecessary repairs: Some inspectors are very thorough and may note every little flaw in a home, from chipped paint to window scratches. Don’t get overwhelmed if your report is several pages long. Your REALTOR can review the report with you and provide their advice on what is normal wear and tear and what you may want to request in your repairs.

Source: HouseLogic and REALTOR Magazine

The Lawhead Team would like to share another great One Cool Thing from the California Association of Realtors about choosing your next house:

There are a lot of assumptions about the housing market, but some of those beliefs may be causing you to miss out on a great house.

Check out some of the biggest misconceptions that home buyers have:

1. Assuming you need 20% for a down payment. If you’ve been waiting to save 20% for a down payment, you may be missing out. About 60% of home buyers actually put down less than 6% on their home purchase.
2. Refusing to consider a house that doesn’t have everything on your list. A list of everything a buyer wants in a home is a starting point, but compromising is likely for some features.
3. Judging a house on price alone. You may find an appealing home that’s way under budget. But if the home is in need of some major TLC, you’ll need to factor in the fix-up costs to determine whether it’s still a great deal.
4. An online home value estimator is always accurate. Several real estate websites offer home value estimator to see what a home is worth – but consider this a ballpark on value, not fact. Your Realtor will provide the most accurate estimate, taking into consideration the home and the current market.
5. Fixating on a few grand. If you and the seller are only a couple of thousand dollars apart on the sales price of the home, you may want to consider the bigger picture. Is it worth it to lose the home over a few thousand dollars that could merely add only a few dollars to the monthly mortgage payment?

Source: HouseLogic.com and REALTOR Magazine.

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

This home is being offered fully furnished except for art work, grandfather clock, and master bedroom furniture.

• 3 bedrooms/2.5 bath
• 2 fireplaces
• Gated community
• Gourmet kitchen
• Oversized rooms
• Plantation shutters
• Central air
• Travertine flooring
• Community pool, spa and BBQ area

Click here for full listing and more photos!

The Lawhead Team would like to share the following article on what young adults need to know before buying their first home. 

Reasons Young Adults Can’t Buy Homes Today

Many young adults are sitting on the sidelines of the housing market, and there’s no shortage of theories as to why. Maybe millennials can’t land jobs that will let them move out of their parents’ basements, or maybe they’re too buried in student loan debts to contemplate adding a mortgage to their financial obligations.

But new data shows that one huge factor is the competition — some might say unfair competition — young adults face from investors who can just swoop in, drop a pile of cash and buy the houses they want. These investors then turn around and rent these properties to those same young adults for increasing amounts every year, making it even tougher for young would-be homeowners to ever save up enough money for a down payment.

As of October, a huge number of homes — one in four — that sold were bought by investors paying cash. That’s down some from the peak of a few years ago, when almost one in three houses were snapped up by cash buyers. But it’s still a far cry from the 17% of homes that were bought by investors back in 2000 before the real estate bubble grew and burst, according to the Wall Street Journal.

Investors are most likely to snap up cheap, starter homes — the kinds of houses that millennials are most likely to be looking for and able to afford. “Home supply is diminishing but investor demand is not going away,” Lawrence Yun, chief economist for the National Association of Realtors, told the Journal, which reported that the number of homes on the market below the $100,000 mark fell by about 11% in only a year.

During the height of the foreclosure crisis, investors were buying up foreclosed and short-sale properties at rock-bottom prices with the intention of flipping them and reselling for a profit once the market picked back up. But now, more are hanging onto the homes they buy and renting them out.

It’s a good move for investors who have the cash to spare already, but it’s bad news for the people who want to buy low- and mid-priced homes. Across the country, rental rates are skyrocketing: One prediction said rents could rise by an average of 8% this year, with much higher increases in in-demand markets where young adults are most likely to live and work. And this is on top of increases that have already taken place. “The median asking rent for new market rate apartments hit $1,372 last year, a 26 percent increase from 2012,” a report published in December by Harvard University’s Joint Center for Housing Studies said.  

Source: Time Money

The Lawhead Team would like to share the latest One Cool Thing from the C.A.R. about how public transit influences the home price Americans are willing to pay. 

Transit Talks

Access to public transit is important, and Americans of all ages are willing to pay more to live where cars are not necessary. Here’s who’s willing to pay more for better transit options:

• 70% of Millennials
• 60% of Gen Xers
• 46% of Boomers
• 27% of Seniors

73% of people support changing land use or zoning regulations in their communities to encourage transit-oriented development

Source: HNTB’s America THINKS “Transit Oriented Development in America” survey

The Lawhead Team would like to share the latest “One Cool Thing” about who is coming back as the new home buyer in town.

Recent data shows that we could soon see the return of the female home buyer.

Historically, single women buy more homes than single men, but that declined after the housing crisis.

• 21% of buyers were single females in 2009
• 15% of buyers were single females

They may be poised for a comeback. 

• The majority of perspective one buyer survey respondents have been women since 2012.
• Census Data show rising incomes for single women.

Top CA markets where the share of women wearing more than $100,000 increased the most from 2012 to 2014.

• Fresno
• San Francisco
• Los Angeles

Sources: Redfin, U.S. Census Bureau

The Lawhead Team would like to share the following article from the CALIFORNIA ASSOCIATION OF REALTORS® about home sales in January.

California home sales kick off year higher in January, marking best start in three years

• Existing, single-family home sales totaled 383,670 in January on a seasonally adjusted annualized rate, down 5.4 percent from December and up 8.8 percent from January 2015.
• January’s statewide median home price was $468,330, down 4.3 percent from December and up 9.2 percent from January 2015.
• Year-over-year sales increased in the state’s major regions, including Southern California (6.5 percent), San Francisco Bay Area (6.8 percent), and with the Central Valley posting the largest annual gain of 11.8 percent.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said California existing home sales posted their best January performance in three years as year-over-year sales recovered from delayed escrow closings late last year caused by new loan disclosure rules.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 383,670 units in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2016 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The January figure was down 5.4 percent from the revised 405,760 level in December and up 8.8 percent compared with home sales in January 2015 of a revised 352,640. The January 2016 sales level was the highest since January 2013, when an annualized 421,780 homes were sold.

“While home sales increased year over year in January, they decreased minimally on a monthly basis, primarily due to a stronger than usual sales gain in December 2015, when the backlog of mortgage approvals caused by new loan disclosure rules were carried over from November,” said C.A.R. President Pat “Ziggy” Zicarelli. “Looking ahead, the slowdown should be a transitory interruption to an otherwise positive trend.”

The median price of an existing, single-family detached California home fell 4.3 percent in January to $468,330 from $489,310 in December. January’s median price was 9.2 percent higher than the revised $428,980 recorded in January 2015. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values. The year-to-year price gain was the largest since May 2014 and marks the fifth consecutive month of home price acceleration, reflecting an ongoing shift in sales activity toward higher-priced properties.

Click here to read the entire article.

The Lawhead Team would like to share this story from Coldwell Banker about the experience this first time buyer had with finding a new home.

Looking at Houses Too Soon

Most first time buyers think the best way to buy a home is to look at homes. In reality, the best way to start the home buying process is to speak to a mortgage provider. It could be a bank, credit union, or mortgage banker.

Because the buyer went looking too soon, they began looking in the wrong price range, which was higher than what they were qualified for and were disappointed at first with the homes in their price range.

Counseling Session with Your Real Estate Agent

At first, the buyer did not think it was necessary to have a counseling session with their real estate agent. The counseling session is essential for the agent to become an equal partner in the home search and buying process. This is where the agent asks the first time buyer questions like why they are buying a home, if they have spoken to a lender, what are their needs, what are their wants and preferences. If an agent knows the big picture, we can be more of an asset to the first time home buyer, not just a direction follower.

Excitement — Delay — Disappointment — Excitement

In our continuing story of a first time buyer, the buyer found a house that was in their price range, and it met most of their needs and wants. However, the buyer took too long to think about it and another offer was accepted. So we continued searching.

Our first time home buyer was very excited to look at more homes, so excited they forgot to tell their agent and went to an open house and spoke with the listing agent. The first time buyer told the listing agent how much they loved the home and were getting desperate to find the perfect home and their house was the one. The first time home buyer did tell the listing agent they had their own agent, which was good, but unfortunately most of the negotiating power was lost.

“My Cousin Can Do the Inspection”

Many first time home buyers do not have much extra cash so they are hesitant to hire a professional inspector. Luckily, they listened to advice, had an inspection, and resisted the temptation to have a cousin come by and take a look at it after work one day.

Sometimes You Should Just Pay an Expert

And to bring the story of our first time buyer and the home buying process to an end, the buyer was very hesitant to use the services of qualified title attorneys to prepare the necessary paperwork to buy the home. It can be a pretty complicated process, one that should not be left in the hands of a family friend that does not specialize in residential real estate.

All in all things turned out well in the story of the first time buyer because first time buyers do trust their real estate agents and are very willing to do what they are advised to do by the experts in the world of real estate. Because of this, I love first time buyers.

Ready to buy your first home? The Lawhead Team is here to help!

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

For many California homebuyers, the dream of homeownership isn’t complete after close of escrow, but rather after completion of a full-home renovation. So what does a full remodel look like in California?

• Average remodeling costs: $263,384
• Average household income of renovating homeowner: $155,000
• Average home value of those completing the full renovation: $725, 000
• 93% of homeowner enlist professional help

Did you know? California ranks #3 in a comparison of all 50 states for those completing renovation projects.

Source: Houzz Real Cost Finder