Real Estate Values in Yucaipa - 2nd Quarter of 2014 to 2nd Quarter of 2015

"So Mr. Realtor!  How's the Real Estate Market?"

Well...the facts don't lie, so let's look at the facts. Let's compare apples to apples...to apples.

First...let's take a quick look at the 2nd quarter of 2014 as compared to the 2nd quarter 2015.

Q2 - 2014: 144 homes sold with an average sale price of $313,723
Q2 - 2015: 154 homes sold with an average sale price of $319,116
That is a modest 2% increase in home prices.
Now, consider Q2 - 2013 when we saw 168 homes sold with an average price of just $278,623 and we'll see that from 2013 to 2014 Yucaipa showed nearly 13% growth in home values.

Why does this matter?

Most of the public is still expecting huge growth, but that's not happening right now.  Modest, real, sustainable growth is happening.  However, as a result of the prior year's exaggerated growth rate, many home sellers and their agents (who probably don't 'geek out' on market data like I do) believe that their homes are worth more than they actually are. As a result homes are often listed above market pricing and sell at market pricing, but below the original asking price.  Over the past 30 days alone, 65% of the homes sold in Yucaipa sold at a price lower than the original asking price.  That's 38 of the 58 homes sold actually sold for less than the asking price compared to only 10 which sold at asking and 10 which sold above asking.

And what do I want you to take from this?  Whether you're looking to buyer or sell, don't put so much weight into the asking price of a home.  Trust a real estate professional to run comps on a home you may be interested in. Make sure that they're putting much more weight into "Sold" data than they are into Active or Pending prices.  The "Sold"  price is a fact.  The "Asking" price is a wish.

As always, if you know someone who may be looking to buy or sell real estate, I'd love the opportunity to provide them with the very best service.  If you know folks in a area I don't personally serve, let me find an agent in their area of interest. I'll ask that agent some really tough questions in order to improve the chance that you're exclusively and meticulously represented by an ethical and professional Realtor.

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

A Simple Look at the Home Buying Process.

What does (or should) the home buying process look like?

Below is a Step-By-Step breakdown of a "typical" real estate transaction from a buyer’s point of view. Before I go on, however, it's important to know that ‘typical’ is a word I tend to run from.  I’ve closed hundreds of deals over the past 9 years, and if one thing stands true, it's the fact that each transaction is unique and brings with it its own challenges and rewards. 

Notice too, that I didn’t say that this is a ‘Day-By-Day’ breakdown of a real estate transaction. Buyers and sellers (and I) would love to know a day-by-day schedule, but that's just not realistic.  The number of days necessary to complete each stage, safely, effectively, and efficiently changes from one transaction to the next. With that out of the way, here we go!  

Think first about the lifestyle you want to lead,
then start your search.

1. Find the best real estate agent you can. Find a Realtor that is going to advocate solely for you. Don't use an agent who's going to simply fill out paperwork in hopes that you and one of their other clients will meet at some arbitrary price that’s half way between what you want and what they want. Each team in the Superbowl has it's own coach.  Don't you deserve one too?
2. Meet with your lender and establish your maximum budget as well as what type of financing you’ll be using.  The result of this meeting should be your Pre-Approval Letter.  This letter is your golden ticket.  It enables you to submit offers to sellers, expressing not just your interest and willingness to buy, but your ability to buy as well.
3. Discuss your Needs, Wants, and Budget.  With whom? Your spouse? Your friend? Your Realtor? Your grandparents?  Yes to all of the above.  Each will have a different perspective and help. Keep in mind that what you “Need” is different from what you “Want”, and what you “Can afford” is different from what you “Should afford”.  
4. View homes.  Much of this process can be done online, but there are benefits and pitfalls with
   using the internet to aid in home shopping.  The benefits of this is that you’re not spending days and weeks driving around from place to place when you can easily rule out 75% of active listings with a virtual tour.  A major pitfall is that anxious and eager buyers often depend on Zillow, Redfin, or Trulia type apps more then they depend on their Realtor.  Simply put, too much of the information on these apps is either inaccurate or outright wrong.  
5. Submit the smartest and best offer you can. Notice I did not say the highest offer.  "Best" and "Highest" are not necessarily the same.
6. Negotiate all of the terms of your contact.  Price, Time-frames, Contingencies, etc. if your real estate agent is a true pro, he or she may be able to learn the seller's motivating factors.  This is like know your opponents' cards in a game of poker.  

   

   Make sure that your wants don't come before your needs. Is your life glamorous, or is it practical? Can you afford both?
7. Congratulations, our offer was accepted! Now, your contingency time-frames begin. Typically these would be inspections, appraisal, and loan contingencies.
8. Tell your lender that you’re in contract so that he or she can start the necessary lending tasks. Appraisal is ordered by your lender.
9. Investigate and inspect the property.  Unless you’re buying a brand new home, I always recommend having your home inspected by a professional home inspector and pest inspector.  Those professionals may suggest that you have additional inspections done as well: roof, foundation, pool, etc. These are not a condition of the agreement, but more of a security strategy.  You want to know what you're buying...not what they're selling!
10. Discuss, draft, and submit a Request for Repairs, Addendum, or a Modification of Terms.
11. Closing and Title activities are initiated.
12. Order homeowners insurance.
13. Verify that all agreed upon repairs are completed properly.
14. Once you’re certain that repairs were completed properly, the appraisal came in at or above your purchase price, and your lender advises you to do so...it's time to remove all contingencies.  At this point you're all in, and going forward. Your earnest money deposit may be at risk if you back out.
15. Sign loan and closing documents.
16. Documents are reviewed for final loan approval.
17. Your loan funds.
18. Title of your home records with the county.
19. You receive possession of (and keys to) your new home.
20. Maintain access to the property you’re living in for at least a week after your proposed close date in case there are closing delays.

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

Real Estate in Yucaipa; The Data Doesn't Lie!

"Oh...you're in Real Estate?  So how's the market?  It's good. Right?"   

 

If I had a nickle for every time I heard that remark...I'd be a rich man.  But, what is "Good"?  If you're an investor looking to snap up distressed properties for pennies on the dollar, you might think a down market is "Good". If you own a home and hope that the equity you're building becomes your retirement, an increase in home values is "Good".  Data, on it's own, isn't inherently good or bad.  It's just the truth.  So here's the simple truth. 

We're often inundated with News, but more often than not this news has nothing to do with us or where we live. For this post, I personally pulled this local, Yucaipa specific market data in an effort to give homeowners in Yucaipa accurate, concrete market information.  This is not my opinion.  It's not some random journalist out of Washington regurgitating someone else's ideas.  It's not good or bad.  It's just the truth.  

First, let's take a look at the general trends, then I'll point out a few items that I see as important with regard to home values in Yucaipa...and where things are headed in the near term.  

The above listed data is for Detached, Single Family Residences in Yucaipa, California only. 

There are several things I'd like to point out about the graph above.

1. Red is (median) what people ASKED for their homes.  Blue is (median) what they actually received.
2. The beginning of the graph illustrates a decrease in home values; the 'end' of the housing bust.
3. In 2011 and beyond we see aggressive recovery of the local real estate market.
4. When the market was "bad" people listed their homes more realistically.  The gap between Asking and Sold was closer. As the market increased...so did home sellers' optimism and aspirations.  Note the increase in the gap between the blue and the red as median home values increased.
5. At NO point was the median asking price at or below the median sold price.  (sellers virtually always think their homes are worth more than they are.)
6. If you had to forecast the where the blue curve was heading over the next 1 to 5 years where do you see it going?

Finally, below is the proof.  If you want to geek-out on data, the screenshots below show the criteria used to secure the data needed for the simple line graph above. 

I say and write this often, "Don't wonder! ASK!"  

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

Honey!!! Stop the car!

Isn't home shopping fun?  Heck, my wife and I still love looking at open houses even though we're not in the market to buy right now. "Just browsing" is an exciting thing to do!  

We love seeing the upgrades, stealing new decorating ideas, and just being inspired to keep our home looking its best.  

"Honey!  Stop the car!  I LOVE this neighborhood!  I'd love to live here!"

However, if you are actually in the market to buy a home, please take a moment to pause and think about this: Before you walk into that Open House, fall in love, then write your very best offer...stop. Stop for just 30 seconds and think.  Who does the agent holding the home open work for?  Does he or she work for you, or does he or she actually have a fiduciary responsibility to the sellers? Below is a statement taken directly from the National Association of Realtor's website, briefly touching on the fiduciary duties of Realtors.

The image above is taken directly from the National Association of Realtor's website.

Now that you've paused and put a little distance between the emotion of the moment and making intelligent decisions for your future, simply ask the agent this question.  "So...is this your listing?"  If the agent says, "No!" then there's no reason (taking for granted that they're experienced and effective) not to use that agent.  If the agent holding the Open House says "Yes.", then his or her loyalty goes first to the home sellers.  The agent is representing, protecting, and negotiating on behalf of the home sellers.  How can he or she give you that same level of service?

Look at it this way for a minute.  When you walk into the Ford dealership and you're going to spend $40,000 on a new SUV, you know that the salespeople works for Ford.  They represent Ford and Ford's interest.  The same holds true for a listing agents.  He or she represent the sellers and the sellers' interests.  If that agent tells you that they can advocate and negotiate for each of you equally...is that agent actually, ethically representing the sellers?  Meeting in the middle is NOT negotiating.

So what should you do?  Simply walk away and call another Realtor; a local area expert who does NOT have an ethical and professional loyalty to another party.  Go ahead.  Look at the property. Grab a flier. Fall in love with the place.  Even decide you want to buy it.  But don't move forward until you have someone in your corner, representing you, exclusively.

Click here to read the Realtor's fiduciary duties directly from the National Association of Realtors website.

Yes.  I too hold Open Houses.  In fact, its one of my favorite parts of my job.  That said, whenever possible, I hold a colleague's listing open, and I make that known as soon as folks walk through the door.  "Hi!  I'm Andy.  This is not my listing.  It's in the capable hands of one of my colleagues.  I, however, would love to exclusively represent YOU in the event that you like what you see."

I believe that the home buying process will be safer, more effective, and more efficient with your own Realtor on your team!

I say and write this often, "Don't wonder! ASK!"  

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 much do I have to put down to buy a house?

Trying to get your foot in the door…literally?

If you're tired of paying rent; tired of paying so much in taxes; tired of paying someone else’s house payment…let’s get you a place of your own.  With that goal in mind, the process so often starts with the same question: "How much do I need to put down? What can I do now? I can't save $50,000-$90,000 for a 20% downpayment!"

Well, even if your wallet is empty, you may have enough to put down on a house of your own.  How much do you have to put down if you want to buy a house? That depends on countless factors, but the real answer is...20%, 10%, 5%, 3.5%...or...yes, even nothing down. 

“But aren't these Zero-Down programs a just a gimmick to get me to buy?”  

No.  Absolutely not.  

• There are communities; in fact there are entire towns that that fall under USDA guidelines, with 0% down financing available.  
• FHA loans allow for a seller to credit buyers up to 6% toward closing costs.
• VA loans allow for up to 4% seller's credit, but will loan up to 100% of your new home's value. 

True story.  The first time that I looked into buying a house I learned pretty quickly that I just wasn't going to be able to make it happen...

...until...

...I talked to a Realtor.  The agent that I met with put me in touch with a lender whom I learned that I could trust. I put my faith in the experts; my agent and my lender, and before I knew it...I was moving in!

Looking back, the only thing I regret is that I didn't do it earlier.

Our first home. Oakley, CA 2004

I ended up writing a full price offer, allowing the seller to stay in the house for an extra month...IF...they agreed to cover all of our closing costs; 100% of ‘em.  They agreed, leaving me needing only to come up with $9,975 of down payment money.  Well, I didn't even have that.  I really only had about $1,000 in my bank account.  I asked my parents for a few thousand dollars (yes, I was very fortunate) and they were really happy to help me get into my very first house and start growing roots in my new community.  The entire process took 40 days...from the day I met my Realtor until the day I closed escrow.

I say and write this often, "Don't wonder! JUST ASK!"  Ask an expert.  They're either going to give you good news...or good guidance. Both are in the right direction!

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

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