10 Painful and Costly Mistakes Home Buyers Often Make

1. Don't use your "Aunt Mabel".
• Although your friend or family member will surely have your best interest at heart, without an intimate understanding of current, local market trends, you're either going to struggle...or pay too much.  Neither of which is ideal.  Use an established and respected local area expert. Why? They get the job done; repeatedly.  They know what's out there and they know what's coming.  They also have established working relationships with the other players in the mix: Title, escrow, lenders, other agents, etc.
2. Remember, until it's yours...it's only sticks & bricks.
• Until you get the keys, do your very best to remember that the deal you're working on is literally just a stack of raw materials and labor.  Don't go order your new sofa or that 80" HDTV. Until it's actually yours, believing otherwise often leads to headaches and heartaches.  
3. Not doing recommended inspections.
• There are typically only two circumstances when I'll subscribe to the idea of 'no home or pest inspections'.  A) New Construction. B) When the buyers have the ability and willingness to recover from unexpected problems with the property; mold, plumbing, electrical, foundation, roof, etc.  These inspections are crucial in making an informed decision as to whether you proceed with a purchase, walk away...or renegotiate terms of your contract.  "But what if we pay for these inspections and find out that we don't want to buy the home?"  THAT, my friends, is exactly why you do the inspections.  Better a $275 risk...than a $475,000 risk.
4. NEVER change your financial circumstances while in escrow. 
• Don't pay more, borrow more, sell something, buy something, or make an investment...and please...don't guy buy a new car! "But I thought paying off my credit card debt would be helpful!"  Don't think; ask!  It might be helpful.  It might have been better, though, to have used those funds to buy down your interest rates. So, if you're going to do anything other than buy groceries (exaggerated...but just a little bit) while you're in escrow, tell your lender immediately.  Better than that, ASK your lender.  I promise that you don't want to be stuck in a contract that you cannot close.  It's no bueno! 
5. Don't leave yourself Mortgage Broke
• Mortgage Broke is when you can comfortably afford your mortgage payment...but nothing else.  No baseball games, no Disneyland trip, no back to school clothes, and no new tires for the car.  Most Americans have an almost unquenchable material appetite. In a funny way, we want to WANT as much as we want to HAVE.  So, just because you're approved to a loan amount of $600,000 doesn't mean that you HAVE TO buy a $600,000 home.  It's your home...not your life.  Make sure that you're comfortable enough to absorb a few financial hits along the road and smile through them.  Enjoy that occasional ski trip.  Take a weekend away, now and then.  Leave just enough breathing room to keep you 'in love' with your home, not burdened by it. 
6. Negotiating with home builders on your own.
• Most home buyers would never consider taking their real estate agent into a new home community.  Over the past 4 years, nearly 25% of my business has been the result of successful negotiations with home builders on behalf of clients.  Think about it for a minute.  Imagine if you and your spouse could walk into a new car showroom with YOUR OWN car salesman to help you negotiate.  Seriously!  This guys know what goes on behind the scenes.  Next, imagine that his or her service was free AND did not raise the price of the car you were going to buy!  It's the same way with new home construction.  You CAN bring help.  As your agent, yes, I do get paid, but those funds typically come from the builder's advertising budget, not the sales price of your house.  I learned this early, watching a Realtor who I know and love negotiated terms on my first new house.  It was fantastic.  Click here to read more. 
7. Know your lender.
• Some random "WannaBuyAHouse.Com" loan website probably isn't the most ideal relationship to foster when your financial future is at stake.  Find a local lender that you can speak with in person, on the phone, via text, or however you prefer.  This person is far more likely to invest time and some serious effort into someone they've personally met.  Are the employees on the other end of some website interface going to be busting their butts for someone they've never even met?  You can't be sure.  So drop into your bank or credit union.  Even better than that would be to work directly with a lender that already has a strong working relationship with your real estate agent.
8. Don't expect that fun new iPhone app to turn you into the local area expert.  

• This has become such a problem within our industry that I already wrote an in depth post about it.  Zillow, RedFin, Trulia, etc. are great if you're looking for a reasonable rule-of-thumb, but as they admit themselves...their data is questionable at best.  Count on your local area expert. He or she knows not just what the price of your new home ought to be...but WHY it ought to be sold at that price.  That expertise; that "why" is crucial when it comes to negotiating a fair price and fair terms.
9. Don't use the wrong "coach."
• Do you know why there were two coaches in the Superbowl this year...and every single other year since the beginning of time?  Because there were two teams; two sides. OK, I know what you're thinking..."Duh!"  But every single weekend, unsuspecting home buyers walk into an open house and tell the listing agent, 'We love it!  Let's write it up!" That's no different than the Patriots marching into the Seahawk's stadium and asking their opponents coach to help them gain the best possible outcome.  It happens all the time.  So what should you do if you do fall in love with that open house?  First, ask if the agent holding the home open is working for the sellers.  Sometimes they're not! If the agent at the open house is working for the sellers, say this, "We absolutely love it!  We're going to go have our agent run comps and write up a competitive offer." Then leave. Find an impartial real estate agent that will advocate or coach your side exclusively. The listing agent has a fiduciary responsibility to the seller. Let someone else advocate for solely you!  
10. Unless your purchase is going to be a rental, make this your home, not just an 'investment'. 
• It's easier said than done, but consider your purchase for what it is; your home.  It may go up in value. It may go down in value. But it will always be your home; at least until you sell it, or will it away! Creating a bit of emotional separation between the idea of investment and home will leave you feeling more peaceful throughout the ups and downs of the real estate market.

There are dozens of other do's and don'ts to keep in mind when buying and selling a home, but I hope that these ideas leave you a bit better equipped to confidently walk the path of buying your next home.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

How long after a Short Sale, Foreclosure, or Bankruptcy do I have to wait?

Did you get caught up in the housing bubble that burst?  Almost everybody did!  In the Riverside, San Bernardino, Ontario metro areas nearly 50% of all homes sold in 2012 were foreclosure related sales. That was just 2012.  Add to that, all of the other distressed homes sold between 2007 and today, and you get a pretty good idea of the scope of that bubble bursting.

Here's the good news though.  If you've survived the stresses of going through a foreclosure, a short sale, or a bankruptcy, you're probably closer than you think to getting back into the market.  How close?  Let's take a closer look.

Below I outline typical wait times for various loan programs based on which financial circumstance you went through.  

• Short Sale 
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Deed in Lieu of Foreclosure
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Foreclosure
• FHA Loan - 3 years. As little as 1 year if borrower qualifies"Back to Work" program. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 7 years
• USDA Loan - 3 years
• Chapter 13 Bankruptcy
• FHA Loan - 1 year if payment period has elapsed. 
• VA Loan - 1 year if payment period has elapsed. 7 years on loans > $417,000
• Conventional Loan - 2 years from discharge date, 4 years from dismissal date
• USDA Loan - 1 year if payment period has elapsed. 
• Chapter 7 Bankruptcy 
• FHA Loan - 2 years from discharge date. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years from discharge date, 4 years from dismissal date
• USDA Loan - 3 years from discharge date. 

I often advise my clients NOT to wonder.  Don't wonder if you're ready.  Find a lender you trust and find out if you're ready.  If you're not ready, the worst thing you would walk away from this experience with is the truth and a plan.  Sounds like a win/win to me.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

14 Reasons why New Homes are better than Pre-Owned Homes

Question: Should I Buy a New Home or a Previously Owned Home?
Answer: This one's an easy one to answer! It depends! See. Pretty easy.

Ok, all kidding aside, I'm a huge advocate for new construction.  My wife and I have owned 3 homes over the past 12 years. Two of those were new construction; the 2nd and the 3rd.  But are new homes better than existing homes?  That question simply can't be answered.  Are new cars better than old cars?  You tell me.

My history shows my personal taste. I love new! But I have friends, family, and clients who absolutely love older homes; the older the better in most cases. Think about it.  You can't buy a new, 1907 Victorian home in Redlands.  You just can't!  And you'd be hard pressed to find a brand new home in a neighborhood filled with 200 year old trees. You probably aren't going to find a new home in Yucaipa on a half acre lot either.

Let's dig a little deeper into what's "better," and for whom.

Here is a list of reasons that might compel you to buy a brand new home as opposed to one that is pre-owned.

1. You have a choice!
With little to no change in sales price, new home builders typically offer choices as to color and styles of the features of your home. These aren't "upgrades," but they're still choices. Carpet color, tile, vinyl, counters, cabinet finishes, etc.  You'll often have 3 or 4 choices in each category to choose from at no extra cost. These choices are made at the design center after we've negotiated the terms of your purchase.  Design center?  It's a complete blast!  You're literally designing the interior of your home!  

2. Possibilities of Negotiation.
When you buy an existing home you have terms with your lender and terms with a seller.  The lender needs to profit, and the sellers obviously want their cut as well.  When you buy new construction; a brand new home, you've got twice as much opportunity to negotiate. Why? Builders want to sell homes.  They'll do everything they can (within reason) to close the deal.  Often builders have an "In House Lender" (an affiliate or subsidiary) that helps buyers get into these homes by putting together attractive loan programs tailored to each unique buyers' financial circumstance. The builder and lender become one, and they typically share in the success of selling these homes. It's no longer two entities looking to profit from selling you a home.  Understanding this allows me, as your agent, to negotiate terms on items such as:

• Sales Price
• Loan Terms
• Closing Cost Credits
• Design Center Credits
• Contingent offers, etc.

3. Shhhh!  Listen! Do you smell something?

Truly a classic, funny line from Ghostbusters.  However, when it's your home, there's nothing funny about "that funny smell." Personally, my favorite smell when I get home is "New House" smell.  Seriously!  I think there's this feeling of certainty that unconsciously reminds me that dinner isn't going to be interrupted a ruptured pipe or blown fuse.  What's that smell?  It's not curry, mildew, cigarettes, or pet odors...it's peace. I remember when our boys were young, crawling and rolling around on the floors. It brought my wife and I peace of mind knowing that not only the carpet was new (and in a color we chose) but the carpet pads and sub-flooring were new as well.  No smokers, no pets, no allergies, and no spills are going to resurface 4 months down the road. If there's gonna be a mess...it's gonna be OUR mess!

4. Competition
When buying new construction you're not likely going to be competing with multiple buyers for the same house. You simply pick your floor plan and elevation (appearance) or your floor plan on the lot you like, negotiate terms, then watch it being built!  

5. Contemporary Styling
Yesterday's "Upgraded" has become today's "Standard" features with new home builders. Dual-pane vinyl windows, energy efficient appliances, and granite counter tops have now become the standard that new homebuyers are looking for. Why worry about updating that dated kitchen when it will already be updated the moment you get your keys?

6. The whole is a sum of the parts
When you buy a 35 year old home, you've got 35 year old 'stuff'.' That 35 year old stuff is connected to other 35 year old stuff.  To a buyer of an older home this often turns a seemingly simple plumbing or electrical problem into a massive investment.  By massive I mean that the backed up sink in the guest-bath could lead to a $7,000 complete re-pipe of your 'new' house. 

7. Infrastructure
In new home communities, you've typically got new sewers, new streets, lights, sidewalks, parks, and more. Sometimes cities even require new home developments to assist in developing the surrounding community as well, including schools, retail outlets, and more.

8. What sounds better; a walk through or an inspection?
With new construction there are no dreaded home inspections!  When you buy a new home, everything is new!  What's to inspect? With pre-owned homes, you've got those anxious days between the time you write an offer and the time you receive your pest and home inspections. After that is the fear of going forward, walking away, or renegotiating.  New home construction closes with a final walk through.  Now THOSE are fun!

9. With new homes, appraisals are your friend!
Yes, your new home must appraise in order for a lender to fund, even on new construction.  That said, it behooves the builder to price their homes accordingly.  Have I seen new homes NOT appraise?  Yes...once.  In that case, the builder simply reduced the price to the appraised value.

10. Home builders sell to FHA and VA buyers!
FHA and VA buyers are typically well qualified and committed to the process. However, from a seller's point of view, FHA and VA offers are less attractive because they bring the results of the inspections in to play.

11. You won't have to buy (or ask the seller to buy) a Home Warranty
Your new home comes with one!  Wait...it comes with several: Foundation, Roof, Fit & Finish, Appliances...everything!

12. Beyond any warranty
You've got a builder's reputation at stake, and they'll stand behind their product.  With pre-owned homes the sellers have likely moved on, and you'll never see or hear from them again.

13. Safety Features
New homes are built to much, much safer building codes.  Fire retardant materials, CO detectors, fire
sprinklers, smoke detectors, GFCI plugs, etc.  Want ground fault circuit interrupters in your pre-owned home?  Let's get a bid for that little upgrade from your local electrician.   

14. Resale Value
"Honey. I'm never leaving this house!  I love it!"...and then...

• Job transfer
• Babies on the way
• Kids are grown and move out
• Parents move in
• Change in family circumstance
• and on and on.

You may plan to live in your next home forever, but at some point you may look at selling.  Reselling a modern home is often a simpler task than selling an older one. 

I could easily create a list that's just as long and just as compelling advocating the purchase of pre-owned homes.  In fact, I'm sure I will.  However, at this point in my personal life, and with a young family in tow, I feel very peaceful living in a newly constructed home and I'm always at peace when I help a client negotiate a deal with a home builder.

Wait!  You mean...I help people negotiate deals with home builders?
Absolutely!  Countless times! Really, at this point I could only guess how many brand new homes I've sold. I've done it enough, in fact, that simply accompanying my clients on their first visit to a builder's model homes pays huge dividends. If I accompany a buyer to a builder's sales office, it affords me the ability to negotiate on their behalf. I've negotiated upgrades, closing cost credits, appliances...even fully landscaped backyards...at no extra cost to the buyer.

But wait, do I get paid a commission?
Yes!  Well technically...no.
Let me explain. It's customary that the sellers of a home pay the listing and buying broker's commissions.  In the case of virtually all new home communities, they don't pay a commission.  They pay a marketing expense; a referral fee.  This is not a line item on your closing statement.  It doesn't come from the sale of the home.  It's paid by a different department all together.  Often the same one that pays for TV commercials, web presence, and print advertisements.  This mean that a) you DON'T pay me; directly or indirectly, and b) I'm absolutely committed to giving you the very best service possible and negotiating aggressively and effectively on your behalf.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com

Hey! What's with the property taxes in Beaumont?

It's the first thing I hear and it's the last thing I hear when I hold an open house in Beaumont.  "Does this place have those super high assessments and taxes?"  My answer: "Yep!  It sure does!"  But as a Realtor, would I ever live in a place with "those super high assessments and taxes"?  Absolutely.  In fact I DO (not in Beaumont specifically, but in one of the newer communities in a nearby city).  

It's not just Beaumont.  It's everywhere: Beaumont, Yucaipa, Redlands, Rancho Cucamonga, and on and on.  

Once I learned what these Mello Roos, or Special Assessments, or whatever you want to call 'em actually pay for, I was all in.  These property taxes go toward proactively building exactly the kinds of communities I want to live in and the community I DO live in. 

If you're a home owner, not just in Beaumont, but anywhere, or if you're looking to buy in the near future, I think that the 6 minutes you spend watching this video will help explain why so many newer developments carry such a high tax burden.

Don't get me wrong.  Not everyone wants to live in a new community.  Some really appreciate the charm of an older, more established and mature setting.  Seriously...you can't buy a new home with a 95 year old oak tree in the front yard.  However, for so many young families, we're looking for convenience, dependability, parks and recreation, and the confidence of knowing that our community has an intelligent and well thought out plan.  

So, now are you ready to pay a bit more in property taxes to live in a bright, vibrant, and intelligently thought out community?  I am!

      Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
Please follow and share at YucaipaRealEstateTrends on Facebook
E-mail me on Andy.Blasquez@gmail.com