Veronica Hernandez REALTOR®

HIDDEN GEM ESTATES

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4 Big Incentives for Homeowners to Sell Now

The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports that there were 410,000 fewer single-family homes for sale this March than in March of 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons.

Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s actually happening in the housing market today.

1. Homeowners don’t know if they’ll be able to secure their next home before selling.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on the ability to award benefits or eliminate costs on the other side.

In today’s market, buyers have compelling reasons to purchase a home now:

To own a home of their own

To buy before prices continue to appreciate

To secure a mortgage at a historically low rate, while they last

These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a good price. However, this leverage may also be used to negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller finds a new home or has one built.

This gives the buyer what they want while also giving the seller what they need. It’s a true win-win negotiation.

2. Homeowners don’t know if their current home will sell for the asking price or top market price.

This is the perfect time to maximize profits while selling a house. NAR just released a study showing that bidding wars are at an all-time high. The study reveals that when comparing the first quarter of last year to the first quarter of this year, the number of offers on homes for sale doubled from an average of 2.4 to 4.8 offers.

Whenever there’s a bidding war, the price of the item for sale escalates. Bloomberg recently reported:

“For the first time ever, the average U.S. home is selling for above its list price.”

If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.

3. Homeowners don’t know if they will get an offer without their home requiring work or updates.

Again, leverage is the greatest strength a seller has in this market. Due to the lack of homes for sale, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after.

A recent post on whether or not to renovate before selling notes:

“It may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.”

If a seller is worried about doing work or updates on their home, they must realize that today’s historically low inventory likely renders these projects less critical to the sale of the house.

4. Homeowners don’t know if they can have a quick closing process.

When speed is important, there are two points sellers should look at:

The time it takes to find a buyer for the home

The time it takes to close the transaction

In the latest Existing Home Sales Report, NAR explains:

“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. Eighty-three percent of the homes sold in March 2021 were on the market for less than a month.”

Eighteen days is fast, and it’s a new record. Here are the days the average house is on the market in each state:Regarding the time it will take to close the transaction, all-cash sales accounted for 23% of all home purchase transactions in March. All-cash sales can usually be closed in thirty days.

If a mortgage is necessary, the most recent Origination Insight Report from Ellie Mae shows:

“Time to close all loans decreased in March. The average time to close a purchase fell to 51 days, down from 53 the month prior.”

If you’re looking for a quick closing process, there’s never been a market in which the two-step process (finding a buyer and closing the deal) has taken less time.

Bottom Line...

Selling your house can be daunting, especially in a fast-paced market. However, the fact that we’re in such a strong sellers’ market clearly eliminates many common concerns. Let’s connect today so you can learn more about the opportunities for homeowners who are ready to sell.

*Article and information courtesy of keepingcurrentmatters.com

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senior homeowners can now move and take their low property tax with them

Prop 19 Explained

As of April 1, 2021 millions of homeowners who are 55 and older, severely disabled, or victims of California wildfires are eligible for significant housing relief and property tax savings as Proposition 19’s property tax base transfers take effect. This is a win for California homeowners because it opens up new market opportunities. Shifting demographic was recognized showing trends that the population of older Californians would double from 2010 to 2030 and continue to grow over the next few decades.   Thanks to the passage of Proposition 19, homeowners 55+, homeowners with severe disabilities and wildfire victims can now: •    Purchase a new home and transfer their home’s low property tax base to another home anywhere in California up to three times* and realize significant annual property tax savings

•    Transfer their home’s tax base to another home — even if the sales price of the new home is priced higher than their existing home (with an upward adjustment in the tax basis if the replacement principal residence is of greater value). Seniors are the fastest growing population, with more than 11 million people 55 and older expected to call California home by the end of the decade. Now, more than ever, older homeowners need the tax benefits, housing relief and flexibility under Proposition 19. Over the coming weeks and months, we will begin seeing the many positive effects from Prop 19 that will continue growing for years to come: providing housing relief and tax savings for California homeowners; allowing those aged 55+ to affordably move closer to family or medical care; helping older and disabled homeowners, feeling trapped in homes, to relocate to a home that better meets their needs; removing the tax penalty facing fire victims who are forced to move after losing their home to wildfires; opening up inventory for younger families, renters, and first-time homebuyers who can purchase homes from Proposition 19 transferees; and encouraging new housing to be built to accommodate our aging population who want to take advantage of Prop 19 tax savings.   Proposition 19 is a win-win to make our housing market more efficient, allowing those 55 and older to move to homes that better fit their needs, while opening up housing inventory throughout the state for younger families and renters to become first-time homebuyers.

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you don't need a miracle to buy a home, just the right agent

Home Ownership Program (HOP)

CALIFORNIA - HOP is financed with HOME funds provided through the U.S. Department of Housing and Urban Development (HUD) and is subject to the applicable federal regulations. Designed to meet the needs of low-income families, HOP provides loans of up to 20% of the purchase price for down payment and closing costs assistance not to exceed $75,000.

Each loan is a second Trust Deed loan provided at 0% interest with all payments deferred until sale, transfer, refinancing, no longer owner-occupied, or full repayment of the first mortgage. HOP loans are available to first-time homebuyers in the unincorporated areas of Los Angeles County and cities participating in the Community Development Block Grant (CDBG) Urban County Program.

Eligibility

1. The applicants must be first-time homebuyers: no ownership interest in real estate at anytime in the past three years.

2. Homebuyers must occupy the home as their principal residence.

3. The loan is secured by a second Trust Deed and Promissory Note.

4. Applicants must invest a minimum of 1% of the down payment, not including closing costs of their OWN funds.

5. All applicants must complete an 8-hour homebuyer education seminar from an approved HUD counseling agency.

6. Property cannot be occupied by tenants, unless it is a Tenant-Purchaser.

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on your way to talk to a lender knowing you have a 720+ credit score

Credit Score 101

Before you start boosting or building your credit score, you need to know the basics. You need to know what a credit score is, how it is developed, and why it is important to you in your everyday life.

Understand where credit scores come from. Your credit score is a number that lets lenders know how much of a credit risk you are.

Credit score is a number, usually between 300 and 850, that lets lenders know how well you are paying off your debts and how much of a credit risk you are. In general, the higher your credit score, the less risk you are and the more likely you are to be given credit at great rates. Scores in the low 600s and below will often give you trouble in finding credit, while scores of 720 and above will generally give you the best interest rates out there.

WHERE DO CREDIT SCORES COME FROM???? kinda boring info but necessary nonetheless...

Credit bureaus use computers and mathematical calculations to arrive at a credit score from the information contained in your credit report. Each credit bureau uses different methods to do this (which is why you will have different scores with different companies) but most credit bureaus use the FICO system. FICO is an acronym for the credit score calculating software offered by Fair Isaac Corporation company. This is by far the most used software since the Fair Isaac Corporation developed the credit score model used by many in the financial industry and is still considered one of the leaders in the field.In fact, credit scores are sometimes called FICO scores or FICO ratings, although it is important to understand that your score may be tabulated using different software. In simple terms, what this means is that your credit score is in a way calculated on the same principles as your insurance premiums .Your insurance company likely asks you questions about your health, your lifestyle choices (such as whether you are a smoker) because these bits of information can tell the insurance company how much of a risk you are and how likely you are to make large claims later on. This is based on research.Studies have shown, for example, that smokers tend to be more prone to serious illnesses and so require more medical attention. If you are a smoker, you may face higher insurance premiums because of this.