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 Lawhead Team would like to share a recent article from Realtor®.com about buying your first home. If you are new to home ownership, read these steps to getting ready to own your first home:

Firm Up Your Finances – Anticipate the new costs that you will incur, such as taxes, homeowners insurance, utility bills and commuting. This will help determine the maximum price you can spend on a house. If your daily budget will change with your first home, consider a trial run living on that budget for a few weeks, to make sure you can. Enlisting the help of a financial expert will give you an objective view of your finances. Remember, the first year is the most difficult. After that you will begin receiving tax benefits.

Partner With an Agent – Even though the Internet gives you access to endless amounts of market information, don’t be tempted to go it alone. Instead, interview several real estate agents and find one you like who listens to you. He or she can line up properties to view, answer many of your questions and make connections for you in your new community. Agents often have the inside track on new properties just coming on the market.

Accept Some Risk – Realize that there is uncertainty in everything, but no matter what happens, you will deal with it. Ask family and friends about their experiences and learn from them. Be sure to keep some cash reserves in the bank as a safety net. And remember, you have homeowner’s insurance for a reason.

Fine Tune Your ‘Must-Haves’ – Is there a community that you absolutely must live in? Are you adamant about a garage, a fireplace or a finished basement? Make your list of what’s vital. You may find that you are willing to sacrifice one feature if the rest are fabulous. If you are not crazy about the house, don’t bid. It’s important that you love it at the outset.

Be Ready to Bid – Regardless of the market, great houses do not stay available for long. One open house can lead to three offers. If you love it, be ready to make your best offer. If you are wavering, ask yourself, “How will I feel if I don’t get this house?” You might just get it, and if not, at least you will know you tried.

Reap the Reward – Owning a home can be one of the most exciting and satisfying things you will do in your life. A first home is an investment that can pay you personal dividends as well as financial benefits.

Read entire article about preparing to buy your first home from Realtor.com.

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 Lawhead Team would like to share the North San Diego County Association of REALTORS® latest key points in the housing market for North County San Diego.

If you are looking to buy or sell your home in North County San Diego, call The Lawhead Team, because two Lawheads are better than one^TM!

• The median price for all North County home sales – attached and detached – increased to $478,500 in December 2013 compared to $475,000 in November 2013.
• Detached homes in North County increased 0.19 percent to $540,000 in December 2013 compared to $539,000 in November 2013. Year-over median price for SFD homes in North San Diego County increased 10.32 percent, compared to $489,500 in December 2012, continuing a 17-month trend of year-over median price increases.
• Detached home prices OUTSIDE North County decreased 2.86 percent to $441,250 in December 2013 compared to $429,000 reported in November 2013. Year-over non-North County median price jumped 15.21 percent compared to $383,000 in December 2012, continuing a 21-month trend of year-over median price increases.
• Attached home prices in North County decreased 3.14 percent to $339,000 in December 2013 compared to $350,000 in November 2013. Year-over SFA North San Diego County median price jumped 21.07 percent, compared to $280,000 in December 2012, the 24th straight month of year over price increases.
• Non-North County attached home prices increased 0.53 percent to $282,000 in December 2013 compared to $280,500 in November 2013. Year-over non-North County SFA median price increased 15.57 percent, compared to 244,000 in December 2012.
• The number of North San Diego SFD listings (active and contingent) decreased 13.42 percent in December 2013 compared to November 2013, and decreased 3.42 percent year-over compared to December 2012 – the 28th straight month of year-over declines in listings.
• The number of sold North San Diego County SFD units decreased 3.16 percent in December 2013 compared to November 2013. Year-over sold SFD units declined 15.97 percent compared to December 2012.
• Median days-on-market for single-family detached homes sold in North County increased to 33 days in December 2013 compared to 32 days in November 2013.
• The HomeDex affordability percentage for all homes in North San Diego County – attached and detached – remained at 33 percent in December 2013.

The Lawhead Team is proud to be a REALTOR®, which sets us apart from those agents or brokers who are not.

We would like to share a valuable article from REALTOR® about choosing a Realtor for your home buying and selling needs:

How to Choose a REALTOR®

Not all agents or brokers are REALTORS® — there is a difference.

As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world’s largest professional trade association. They can then call themselves REALTORS®.

The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR® who belongs to an MLS will give you access to the greatest number of homes.

Using an agent and the obligations that are owed to you – An agent is bound by certain legal obligations. Traditionally, these common-law obligations are to: Put the client’s interests above anyone else’s; Keep the client’s information confidential; Obey the client’s lawful instructions; Report to the client anything that would be useful; and Account to the client for any money involved.

NOTE: A REALTOR® is held to an even higher standard of conduct under the NAR’s Code of Ethics. In recent years, state laws have been passed setting up various duties for different types of agents. As you start working with a REALTOR®, ask for a clear explanation of your state’s current regulations, so that you will know where you stand on these important matters.

The difference between a buyer’s and a seller’s broker – Suppose you sign an offer to buy a home for $150,000. You really want the property and there’s a chance other offers are coming in, so you tell the broker that “We’ll go up to $160,000 if we have to. But of course don’t tell that to the seller.” If you’re dealing with a seller’s agent, he or she may be duty-bound to tell the seller that important fact. In most states, the seller’s agent doesn’t have any duty of confidentiality toward you. Honest treatment might require that the agent warn you that “I must convey to the seller anything that would be useful so don’t tell me anything you wouldn’t tell the seller.”

TIP: If you’re dealing with seller’s agents, it’s a good idea to keep confidential information to yourself. These days many home buyers prefer instead to hire a buyer’s broker, one who owes the full range of duties, including confidentiality and obedience, to the buyer. A buyer’s broker is often paid by the seller, regardless of the agency relationship.

How to evaluate an agent – In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent. The first question you should ask is whether the agent is a REALTOR® . You should then ask:

• Does the agent have an active real estate license in good standing? To find this information, you can check with your state’s governing agency.
• Does the agent belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service? Multiple Listing Services are cooperative information networks of REALTORS® that provide descriptions of most of the houses for sale in a particular region.
• Is real estate their full-time career?

Read the entire article at REALTORS website: http://www.realtor.com/basics/buy/looking/realtor.asp?source=web

The Lawhead Team would like to share a recent article from Realtor.com about choosing the right neighborhood for your new home.

Any good Realtor will share the mantra, “location, location, location” when talking to you about what attributes help a home hold onto its value and potentially appreciate. However, no one neighborhood is right every buyer. Determining which community meets your needs and your budget requires research and some soul searching about your priorities.

Establish your priorities – Before a Realtor can begin to help you look for a home, you (and your spouse or partner) should develop a list of needs and wants. For some buyers, the home itself is of paramount importance: they want a particular style or size or a big yard. For others, the neighborhood is more important. If you have an unlimited budget you may be able to find the perfect home in a desirable neighborhood, but since most buyers need to meet a budget, you may have to compromise on either the house or the community.

Next, think about what amenities you’d like to have nearby or whether you’d like to live in a rural area without neighbors. If you like to swim or golf or play soccer or your kids do, facilities for those sports should be on the list of things you look for in a neighborhood. On the other hand, you could be more focused on easy access to cultural amenities or nightlife. Think about whether you’d like to live in place where residents interact often or whether you prefer to have cordial but distant relationships with your neighbors.

Schools matter – even if you don’t have kids. If you have children or are planning to have a family in the future, buying a home in a community with good schools is already likely to be a priority. Even if you don’t have children to educate, though, you should be aware that homes located in a good school district typically hold onto their value better than those in less highly regarded districts. In fact, Redfin real estate company completed a nationwide study in 2013 that shows that Americans pay $50 per square foot more for homes served by a top-ranked school than for homes served by an average-ranked school.

The Fair Housing Act prevents Realtors from providing information directly to buyers about specific schools, but they can share links to websites that rate schools and to local school systems.

Transportation issues – A major consideration for most home buyers when it comes to choosing where to live is how they’ll get to the places they go regularly. In communities near or in a city, prime locations are typically close to public transit options. Many suburban communities are being designed around a “town center” concept so that residents can walk to restaurants, shops and entertainment and sometimes even to work.

When you’re looking for a home, you should consider how convenient it is for you and for future potential buyers when you’re ready to sell.

Homes that are located close to a subway station or to popular commuter routes are often more costly than those that require a longer commute to a city center, so ask your Realtor to show you areas that may have similar attributes but are less expensive. Alternatively, if living in a particular neighborhood is your number one priority, you may need to compromise in terms of the size home you buy or its condition.

How to compare communities – It’s important to visit a prospective neighborhood at various times of day and on both weekdays and weekends to get a feel for what it would be like to live there. Look at how the homes are maintained to see if they meet your standards. Try to talk to residents about what the community is like and test out your commute at the time of day you typically go to work.

Finding the right neighborhood takes some legwork, but it’s important to choose a place to live where you want to come home every night.

Article from Realtor.com – http://www.realtor.com/advice/how-to-choose-the-right-neighborhood/

Only about one third of all licensed real estate agents in California are Realtors, which means they are active members of the National Association of Realtors (“NAR”).

To become a member of the NAR, the licensed agent must join a local real estate board or association. Real estate associations are often organized by county or region, such as the North San Diego County Association of Realtors (“NSDCAR”) which The Lawhead Team are members of.  Once a licensed agent becomes a member of a local board, they are automatically extended membership into the national organization.

New NAR members must take an online course on the ethics code and pass an exam. Current members are required to take an online ethics refresher course every four years. Membership in a local real estate board or association requires an annual fee that covers membership dues for the NAR and any state-level real estate associations.

To qualify for membership, the agent must agree to adhere to NAR’s strict code of ethics and standards of practice. The official ethics code is revised yearly to reflect the latest issues in real estate law and practice, and its core message is to “treat all parties honestly” [source: National Association of Realtors]. Although the primary responsibility of a buying or selling agent is to his or her client, Realtors take an oath and promise never to mislead or withhold information from anyone involved in the real estate transaction — including the other real estate agent and his or her clients.

The NAR ethics code is what separates Realtors from non-member real estate agents. Although the study of ethical principles is included in many state education and licensing programs, the NAR code obligates Realtors to follow the code of ethics and standards of practice discussed earlier. Part of the incentive for becoming a Realtor is to capitalize on the good reputation of NAR members. The idea is that consumers will opt to work with a real estate agent who has sworn to treat all parties fairly and honestly.

We bring this to your attention because two thirds of all the licensed real estate agents in California are not bound by a strict code of ethics and standards of practice.  As Realtors and active members of the NSDCAR and the NAR, The Lawhead Team believes that you should demand and receive professional, ethical representation without exception and we would be honored to assist you or someone you know with your residential real estate needs.

If you are looking to buy a home in the near future, there is a good chance a lot of the properties you look at will be short sales.  The Lawhead Team would like to share some helpful short sale tips for prospective buyers.

A short sale is an attempt by the current owner to sell a home instead of the bank taking it back to partially save their credit and lift the burden of the huge mortgage debt they were paying.  Unfortunately, with a short sale the entire process relies on the hope that the bank will take a loss, approve the sale and eliminate the costly process of foreclosing, clearing and reselling a home.

This article, “Making an Offer on a short sale? What You Need to Know” is from Realtor Magazine.

You’re a good candidate for a short sale purchase if:

• You’re very patient. Even after you come to agreement with the seller to buy a short sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you’re serious about purchasing a short sale property, it’s important for you to have expert assistance. Here are some people you want to work with:

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who’s knowledgeable about the short sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.
• A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)
• Title officer. It’s a good idea to have a title officer do an initial title search on a short sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.
• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.
• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

If you are in the market for a new home, please call The Lawhead Team for all your Real Estate needs. Article can be found at: http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-buyers/making-offer-short-sale-what-you-need-know

The Lawhead Team recently came across and article from Realtor.com about the Fiscal Cliff and what it means for the future of interest rates.

This article on Fiscal Cliff, QE3, and the Future of Interest Rates is from Realtor.org:

The ‘Fiscal Cliff,’ QE3, and the Future of Interest Rates

Economists from the Mortgage Bankers Association sounded an optimistic note at a press conference yesterday afternoon during the organization’s Conference & Expo in Chicago, with predictions that unemployment will go down, home purchase loan originations will go up, and mortgage rates will remain low in 2013. All of these point to a continued housing recovery, but they cautioned that major economic challenges loom that could bring about a reversal — particularly in interest rates.

“The most immediate threat is the fiscal cliff,” said Jay Brinkmann, the MBA’s chief economist and senior vice president of research and education, referring to the deep cuts in taxes and government program spending that will take place at the end of this year if some sort of financial compromise isn’t reached by legislators on both sides of the aisle before then. The Congressional Budget Office estimates that U.S. gross domestic product will fall four percentage points in 2013 if an agreement isn’t forthcoming, which would make it a recessionary year.

Mike Fratantoni, vice president of single-family research and policy development for the MBA, predicted there will be some sort of resolution. “It may not be clean, and it may not be timely,” he added. Any major delays would likely lead to a spike in interest rates and, consequently, declines in home sales.

Over the long haul, interest rates will likely remain below historical lows because of the flight of global capital to the U.S. caused by the continuing European debt crisis and the Fed’s rollout of another round of quantitative easing (often referred to as QE3). This Fed initiative — which will probably last at least a year and possibly as long as two — will involve the central bank purchasing tens of billions of dollars in mortgage-backed securities each month.

“[QE3] wasn’t surprising,” Fratantoni said. “The aggressiveness, the open-ended nature of it, and extreme focus on the mortgage market was a surprise.”

However, if the Fed determines that they’re crowding liquidity out of the market with QE3, they may shift to purchasing longer-term securities such as Treasuries, Brinkmann added.

Article on Fiscal Cliff, QE3 and the interest rates can be found here: http://realtormag.realtor.org/daily-news/2012/10/24/fiscal-cliff-qe3-and-future-interest-rates

If you are in the market for a home, there are many reasons why you should hire a professional realtor especially if this is your first home you are buying.

Buying a home for the first time can be overwhelming. While it may be tempting to avoid realtor fees and handle things on your own, having a professional realtor by your side can make the process go more smoothly and provide valuable insight into what’s likely one of the biggest purchases of your life.

Check out these reasons you should hire a realtor when you are in the market for a new home:

• A realtor has access to every home that’s on the market via MLS (Multiple Listing Service) and all other sources, including ones that may not be listed publicly.
• A realtor has inside track to the deals before they even hit the market.
• They have the ability to combine what you want in your dream home within your price range.
• Realtors have knowledge of recent comps — what similar properties have sold recently and for how much.
• A realtor has knowledge of neighborhoods in the area you are looking to move.
• A realtor has the ability to negotiate with the sellers on your behalf.
• A realtor has the inside scoop from the sellers’ agents.
• Your realtor will have the expertise it takes to negotiate and close the deal.
• A realtor has the experience to manage the legalities of foreclosures or other distressed properties.
• Realtors have the muscle to get a deal through the escrow or “under contract” period.
• Most realtors have a litany of referrals for inspectors, mortgage brokers, and even tradesman for renovations.
• A realtor will offer objective professional advice when you have your buyer’s remorse meltdown.

If you are in the market, call The Lawhead Team for expert advice on your first home purchase, Because Two Lawheads Are Better Than One^TM.