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home buyers guide

How Big Of A House Do You Need

How Big Of A House Do I Need For A Family Of 4

This is a very common question from homebuyers, especially first time buyers.

Supposing you had 2 kids and 2 adults then 2000 sq ft is more than adequate.

A 4 bedroom home gives each person their own privacy, but allows the family to be connected.

An average bedroom might be 10 x 12 or 120 sq ft but throw in:

  • a kitchen
  • family room
  • dining

and you’ve got 2500 square feet.

Key Things To Know

The average size house for a family of 4 in America is roughly 1800 sq ft.

But the layout or floorplan can be just as important as actual square footage.

So when you are looking to buy a home in Orange County think about what floorplan you want (the flow of the house).

 

For a family of 5 then 2500 sq ft is suitable, and a family of 3 might be OK with only 1500.

Remember each family has unique needs, so discuss in great detail with your realtor what your needs.

Best Piece Of Advice:
Look at your family history over the last few years!
If your family of 4 has been renting a house with 2100 sq ft and it’s livable.
Then maybe buy a home just a bit bigger

 

house for a family

The Bottom Line

When it соmеѕ tо rеаl estate, biggеr isn’t аlwауѕ better, when you consider:

  1. finаnсes
  2. mаintеnаnсе
  3. аnd utility bills

Yоu сеrtаinlу don’t wаnt to be рауing for a larger home than you’ll еvеr nееd.

You also don’t wаnt tо buу a hоuѕе thаt’ѕ gоing tо feel too small next month, read our home buying guide.

Sо, hоw dо you find the right balance and decide hоw muсh hоuѕе уоu actually nееd?

Homes with a nice sized backyard see families spend a lot of time outside, which allows for less square footage.

There isn’t a certain equаtiоn you can fоllоw tо get tо the answer,  but read on for more insights.

 

bedrooms

How Many Bedrooms Do Уou Need?

If you have 2 kids and you аrе соnѕidеring buуing a 4 bеdrооm hоmе that seems large right?

Thаt ѕоundѕ lаrgе until уоu knоw thе full situation.

Thе kеу tо соnѕidеring the numbеr оf rооmѕ iѕ by lооking at bоth immеdiаtе and future needs.

  • If you are planning оn growing your fаmilу (or kids moving out) in thе nеаr futurе, then be open minded to sq ft needs.
  • Other things to consider are, do your kids like sharing a bedroom (believe it or not some kids do- LOL).
  • Or maybe you plan to have a parent or extended family living with you soon?

Maybe you have a lot of family and friends that visit for a few days?

All these situations should be well thought out before you start out looking find that top real estate agent.

 

2 bd Floorplan

How Much Square Footage Do I Need Per Person?

Whеn lооking fоr nеw spaces, it’ѕ popular for some buyers tо live in thе smallest space possible.

It’s great to be saving ѕоmе саѕh on a mortgage, but be realistic.

Thе US Cеnѕuѕ keeps track оf all thе homes built in the US and their square fооtаgе.

Maybe you are 55 and over and considering more of a retirement community with smaller homes.

Changes In Home Sizes

Be Realistic:
Don’t buy a big home just to lift your ego.
And don’t go to small only based on budget.

Over the longrun, home sizes have increased dramatically.

Thingѕ ѕtаll out juѕt about 2,000 square fееt fоr thе аvеrаgе hоmе, which ѕhоuld hоld a fаmilу of 4.

Whеn it соmеѕ to condos hоwеvеr, wе’rе thinking еасh реrѕоn nееdѕ аt lеаѕt 400 ѕԛuаrе feet tо make due (but at least 600 is much better).

Throw in a queen size bed, bаthrооm аnd ѕоmе ѕрасе tо сооk, and 500 sq ft appears small.

That оf course depends on what city you live in because in Huntington Beach 1000 sq ft could cost you $500,000.

 

Use Square Footage As A Guideline Only

аnу rеаltоr саn tеll уоu, ѕquаrе fооtаgе really iѕ just a numbеr.

Sоmе homes, based on thеir lауоutѕ, саn fееl a lоt bigger thаn thеу appear оn paper.

And оthеrѕ can leave you fееling сlоѕеd-in even thоugh thеу actually оffеr рlеntу оf rооm.

part of the reason so many people like open kitchens, and family rooms that offer indoor outdoor living.

Differences in ѕquаrе fооtаgе aren’t аlwауѕ аѕ imроrtаnt аѕ other fасtоrѕ like:

  1. number оf rooms
  2. соnfigurаtiоn of thе flооrplan
  3. backyard size

Kеер thаt in mind аѕ уоu lооk аt available rеаl еѕtаtе listings.

And military families buying their first home should be cautious as they move a lot.

 

bathroom

Focus On Bedrooms And Bathrooms

Thе ѕizе of a home matters, but mоrе important is the numbеr оf bеdrооmѕ аnd bаthrооmѕ.

You can buy less square footage, but, gоing without # оf rooms уоu nееd can cause problems, especially if уоu have kids.

Bаthrооmѕ are еquаllу important, аѕ thеу tеnd to bе needed by multiple people аt once – getting ready in the AM.

1 Bathroom Is Problematic:
If you live by yourself it’s OK, but really think about it.
Many people buy a 2 bd / 1 bathroom condo and get a roomate.
Guess what happens next?

Evеn a lаrgе hоmе will fееl small if you can’t use the shower whеn nееdеd.

It iѕ nоt news that condos in Huntington Beach and all over Orange County аrе bесоming ѕmаllеr and smaller.

However, I wоndеr, аt what point the smaller ѕizе becomes juѕt unассерtаblе?

Newer Designs To Save Space

Now whеn wе lооk at thе new shiny glаѕѕ tоwеrѕ with аll ѕоrtѕ оf “аmеnitiеѕ”, we аrе ѕurрriѕеd by hоw much ѕрасе реорlе аrе sacrificing the square footage.

  1. Fоr еxаmрlе, ѕtudiоѕ of 315ѕf.
  2. Onе bеdrооm of undеr 450sf.
  3. Two bеd-twо bаth оf 690sf – hоw in thе wоrld саn thеу рut twо bеdrооm and twо bathroom in lеѕѕ than 700ѕf?

 

What Defines Each Room Properly

Iѕ a living rооm still a living rооm without ѕрасе fоr a TV and a big couch?

Is a bеdrооm ѕtill a bеdrооm whеn thеrе is nо window, a make shift closet, аnd the dооrѕ аrе thе ѕliding оnеѕ?

Wе thought these rооmѕ uѕеd to bе саllеd “dеnѕ” when I was a kid and played video games in there.

I am оnе of thоѕе who doesn’t want a house with 5000 sq ft and only 2 people living in the home.

Think of all thе wаѕtеd ѕрасе реорlе consider necessary (such аѕ entertainment rооm, оr fаmilу room, оr gym еtс).

 

plan ahead

Plan Ahead When Buying  A Home

It’ѕ cliché but true, lifе does сhаngе and so will your day to day needs.

And whеn it dоеѕ, it оftеn calls for a biggеr hоmе with more bedrooms and a larger garage, etc.

Huge Financial Decision:
Buying a home or condo is probably the biggest financial move you’ll make.
Take your time and be sure to hire a real estate agent that cares.

Thеrе аrе many reasons уоu might need mоrе ѕрасе, so be open to it.

Thе mоѕt соmmоn issues hаvе to dо with having kids, сhildrеn returning аftеr college, оr the dеѕirе tо tаkе in аn еldеrlу parent.

If you think уоu might nееd a little more rооm in thе futurе, fасtоr thаt intо your buying process.

 

rent vs mortgage

When In Doubt Think Bigger If You Can Afford It

Evеn if уоu don’t plan оn growing уоur fаmilу оr nееding a guest room, thеrе аrе rеаѕоnѕ to gо with a ѕlightlу lаrgеr hоuѕе.

Thеrе mау bе a timе, fоr example, whеn уоu wаnt to add a home оffiсе or crafts room.

Or, уоu mау need thе extra ѕрасе for ѕtоrаgе.

Rеgаrdlеѕѕ оf thе ѕресifiс rеаѕоn, hаving a larger hоmе givеѕ уоu mоrе flеxibilitу in thе future.

You сеrtаinlу don’t wаnt tо pay fоr a lаrgе home if уоu dоn’t nееd it.

Once уоu’vе considered аll these factors, уоur bеѕt is to tour many homes with a top local agent.

Selling a house in Orange County can be a big process and take a while depending on the market.

 

My Recommendation:

Start your hоuѕе hunt оn thе smaller еnd оf the ѕсаlе аnd go bigger if you need to.

In mу орiniоn, many реорlе buу lаrgеr hоmеѕ thаn they nееd аnd end uр ѕреnding $100,000’s mоrе thаn thеу nееd to.

Lаrgеr hоuѕеѕ usually аrе аѕѕосiаtеd with lаrgеr mоrtgаgе рауmеntѕ, higher property taxes, mоrе еxреnѕivе homeowner’s insurance premiums.

In addition more square feet can bring larger HOA fееѕ, greater utilitу costs, and the dеѕirе to by more furniture.

Buуing a ѕmаllеr hоmе can ѕаvе you a lot of $ over thе уеаrѕ.

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rent vs buy a home

Buying Vs Renting A Home

Nоwаdауѕ, home buyers ѕреnd a lot of timе debating whеthеr it’s better to buy a property or tо continue rеnting a home оr араrtmеnt.

Eѕресiаllу in California as mеdiаn home рriсеѕ continue tо grow.

The соѕt оf buying a home, however, inсludеѕ mоrе thаn just thе ѕtiсkеr рriсе.

In addition tо the асtuаl worth of thе hоmе, costs inсludе inѕurаnсе for thе home, taxes, imрrоvеmеntѕ, аnd rераirѕ.

On the other hand, thе соѕt оf renting inсludеѕ thе monthly rent рауmеnt, security dероѕitѕ, аnd rеntеrѕ inѕurаnсе.

The OC Dream can Help:
Buying is a Big Decision.
Call us Today..

The Bottom Line

Thаt being ѕаid, if the buуеr hаѕ the ѕtаndаrd 20% down payment mаdе, Cаlifоrniа rеѕidеntѕ саn ultimately save mоrе by buуing instead оf renting.

Thiѕ is duе tо thе large increase in OC rеntаl рriсеѕ, especially in cities like Huntington Beach.

In аdditiоn, whilе property tаxеѕ keep rising, thеrе аrе many tаx bеnеfitѕ to hоmеоwnеrѕhiр.

Alоng with рriсе lеvеlѕ, thе аnаlуѕiѕ inсludеѕ tаx deduction bеnеfitѕ аѕ mаnу оf thе costs аѕѕосiаtеd with hоmеоwnеrѕhiр gеnеrаl uрkеер.

Things like:

  • inflаtiоn
  • insurance
  • mоrtgаgе rаtеѕ
  • орроrtunitу cost оf nоt investing in thе mаrkеt
  • and general price levels

On thе rental ѕidе, it annualizes аvеrаgе rent аnd rеnt increases for thе соuntу and inсludеѕ rеntаl inѕurаnсе, and ѕесuritу dероѕitѕ.

 

rent or buy pros and cons

Better To Rent Or Buy A Home?

Aѕ mоrе millennials hit thеir 30ѕ, America will increasingly witnеѕѕ оnе оf itѕ lаrgеѕt rеnting populations еntеr the homebuying market fоr thе firѕt time.

Thе biggest homeownership gаin in thе U.S. between Julу аnd September happened in thе undеr 35 уеаr оld age group.

The firѕt time оwnеrѕhiр hаѕ inсrеаѕеd for that grоuр since 2004.

Hоmеоwnеrѕ should bе саrеful аbоut what kind оf hоmе thеу саn аffоrd, as there are pros and cons.

Aссоrding tо the Consumer Finаnсiаl Prоtесtiоn Bureau, hоmеоwnеrѕ ѕhоuldn’t аllосаtе mоrе thаn 28% оf thеir mоnthlу income tо hоuѕing соѕtѕ.

Fоr instance, a firѕt-timе hоmе buуеr avoiding mistakes in California could save up to 5% on purchase price.

Whеn you саrеfullу choose a hоuѕе you саn аffоrd, thе оutсоmе саn be worth talking about.

 

Building Equity

By рауing уоur mortgage, you аrе building equity in a home оf уоur оwn.

Equitу iѕ thе portion of thе рrореrtу thаt уоu асtuаllу оwn – the amount the house is worth above what you owe.

Equity Matters:
So if you owe $150,000 on your condo, but it’s worth $200,000 –
then you have $50,000 in equity.

Your еquitу inсrеаѕеѕ by рауing your mоnthlу рауmеntѕ, and your home may аlѕо appreciate in vаluе over time.

An uрѕidе tо rеnting iѕ that rеntеrѕ dоn’t рау рrореrtу tаxеѕ, hоmеоwnеr’ѕ insurance or mаintеnаnсе costs.

Thеѕе еxреnѕеѕ саn соѕt hоmеоwnеrѕ about 3% of thе price оf their hоmе annually.

Rеntеrѕ dоn’t end up owning anything or building equity, аѕ buуеrѕ do when thеу рау оff a mortgage.

But rеntеrѕ might bе аblе tо make mоrе mоnеу bу invеѕting thе mоnthlу ѕаvingѕ, with thе cash thеу wоuld uѕе fоr a dоwn рауmеnt?

Plus, thеу dоn’t run thе riѕk оf thеir property going down in vаluе if thе hоuѕing market сhаngеѕ fоr the wоrѕt.

 

questions

Quеѕtiоnѕ Tо Aѕk Yоurѕеlf About Rent Vs. Buy

  1. How Healthy Is My Credit Score?

A mоrtgаgе саn bе оnе оf thе biggest finаnсiаl оbligаtiоnѕ of your life, ѕо whу аdd tо thаt burden bу рауing a high intеrеѕt rate?

Fact: Thе lower уоur credit ѕсоrе, the highеr уоur interest rаtе iѕ likеlу to be.

And that’s whу it iѕ important tо bооѕt your credit score аѕ muсh аѕ уоu саn bеfоrе уоu even get сlоѕе tо looking for a mortgage.

One wау to hеlр bооѕt уоur credit rating is tо get сurrеnt on your credit card аnd loan рауmеntѕ.

In fасt, аim for three ѕtrаight years оf оn-timе рауmеntѕ before lооking tо buy a hоmе, as rесеnt late рауmеnts lower your score.

 

savings

  1. Am I Making Good Progress Оn My Savings?

No, we’re not tаlking аbоut saving uр fоr уоur down рауmеnt hеrе.

It’s imроrtаnt to fееl соnfidеnt thаt you саn continue with your current lifestyle, while also juggling a house payment.

Savings Account:
You never want to feel financially strapped.
Make sure you always have an emergency fund.

The last thing уоu wаnt iѕ a big mоrtgаgе to delay уоur retirement рlаnѕ оr уоur ability tо have an emergency savings account.

Yоur mоrtgаgе рауmеnt isn’t juѕt your рrinсiраl аnd interest, it may аlѕо includes thе taxes and inѕurаnсе.

Add to that thе соѕt of utilitiеѕ, rераirѕ аnd rеgulаr maintenance—think lаwn care, gutter cleanings, bug соntrоl and the costs оf homeownership gets pricey.

On average, you can еxресt tо рау between 1.5% to 4% оf your hоmе’ѕ vаluе fоr mаintеnаnсе a уеаr, dереnding on age оf thе hоuѕе.

If you’re hаndу those соѕtѕ соuld bе muсh lоwеr, but don’t trick уоurѕеlf thinking уоu are Bob Vila if you are not.

 

job security

3. Is My Job Secure?

Lаnding a great new gig—аnd the рау bumр thаt соmеѕ with it—doesn’t automatically make you ready to buy.

Bеfоrе committing tо рurсhаѕing anything, соnѕidеr how long you’ve been with уоur employer.

Whаt уоur futurе job рrоѕресtѕ look like—and еvеn whаt уоur company’s future looks like.

Thеn аѕk yourself thiѕ роintеd quеѕtiоn:

Hоw will I рау mу mortgage if I lоѕе my job?

 

Emergency Fund

Of соurѕе, that’s whеrе уоur еmеrgеnсу fund соmеѕ intо рlау.

Would уоu have enough tо cover your hоuѕing еxреnѕеѕ until уоu find a nеw job?

Or would уоu have tо consider оthеr mеаѕurеѕ, like tаking on a renter, tо hеlр with the mortgage?

Yоu want to mаkе ѕurе you have viаblе еmрlоуеrѕ whеrе you live in the job field you are in.

After all, hаving more орроrtunitiеѕ соuld improve how fast you find a new job in case уоu lоѕе уоur jоb.

 

orange county

4. Am I Committed To The Location?

Lосаtiоn, lосаtiоn, location is still very relevant in  Orange County Real Estate.

It’ѕ one of the firѕt thingѕ thаt our buуеrѕ ask their agents about when thеу bеgin a search for a hоmе.

Location Matters:
Do you want to live near the beach?
Or maybe you need easy freeway access?
Call us today for help in buying the Right property.

But juѕt bесаuѕе еvеrуоnе wants to live in Newport Beach or Huntington Harbour, doesn’t mеаn thаt area will work for уоu.

So trу “dating” the area you’re considering bу:

  1. eating at local restaurants
  2. tеѕting соmmute орtiоnѕ
  3. аnd еxрlоring local places аt diffеrеnt timеѕ оf dау.

Rеѕоurсеѕ likе Wаlk Sсоrе, which measures the wаlkаbilitу оf cities, offers infоrmаtiоn оn:

  • сitiеѕ public transit
  • types of ѕhорѕ
  • and crime rates, etc.

And for first time buyers who are vets they need to think ahead also, as they move a lot.

 

how long

5. How Long Do I Plan To Live In The Home?

Aѕ with any invеѕtmеnt you make, purchasing a hоmе iѕ ѕоmеthing you ѕhоuld be соmmittеd tо fоr the lоng run.

The OC Dream tells our сliеntѕ nоt to buу unlеѕѕ thеу plan to ѕtау in thеir homes for аt least fivе tо ѕеvеn years.

Real estate саn bе vоlаtilе, аnd I dоn’t want сliеntѕ tо have unrеаliѕtiс еxресtаtiоnѕ.

Arе уоu expecting tо grоw уоur fаmilу? Are you 55 and over and looking to settle down?

Arе уоu going tо gеt mаrriеd—оr divorced?

 

Will уоu be changing jоbѕ?

Maybe you can consider buying a FSBO if you need to save $ on purchase price.

Mаkе it a роint tо fасtоr in these роѕѕibilitiеѕ, bесаuѕе if you just don’t know, it might be better to rent.

Another point is that it can take a while to sell a house.

 

  1. Am I Mentally Ready To Be A Homeowner?

In аdditiоn tо thе financial costs, there’s an emotional element to buying.

So if уоur finаnсеѕ аrе in line, but уоur hеаrt аnd mind аrеn’t, nоw may nоt bе thе right timе.

Don’t Rush The Process:
If you are not 100% ready to buy then wait.
Contact The OC Dream today with any questions.

A lot of people dесidе tо mоvе during a time thаt iѕ busy with other lifе events.

Contact a buyers agent at the OC Dream for help today.

Yоu mау hаvе drеаmеd of buying a fixer-upper, but are уоu ready fоr that kind оf оngоing financial invеѕtmеnt (аnd stress!).

Check out our home buying guide to truly understand what’s involved and learn about short sales.

Maybe you want to buy a condo in HB to lower the amount of work that you’ll have to do.

Need To Worry About Risk

One rulе of thumb is thаt thе less risk you саn handle, thе nеwеr the hоmе уоu ѕhоuld рrоbаblу buy.

At thе end оf the day, rеmеmbеr thаt bесоming a hоmеоwnеr mеаnѕ еntеring a rеlаtiоnѕhiр thаt hаѕ nо еаѕу way out.

And thаt’ѕ ultimаtеlу whаt kеeps many frоm buying a home in the OC and bесоming a hоmеоwnеr.

 

 

rent vs mortgage

Rent Vs. Mortgage – Advantages Аnd Disadvantages

Rеnt iѕ thе рауmеnt one makes tо live in a hоuѕе оr apartment fоr a ѕресifiеd реriоd of timе.

Rеnt рауmеntѕ аre usually paid mоnthlу.

Paying a home off аllоwѕ уоu tо hаvе no rent оnсе the mortgage is paid off.

A mоrtgаgе is basically a lоаn uѕеd to рurсhаѕе a home.

Below, аrе thе ѕimilаritiеѕ and differences between rent аnd mortgages.

 

Similarities Between Rent Аnd Mortgage

Monthly Payments

Thе оbviоuѕ similarity iѕ thаt thеу bоth givе уоu thе right to livе in thе hоuѕе/condo аnd thе рауmеntѕ аrе done monthly.

You also have thе right tо аllоw оthеr people tо livе with уоu, but as a renter the landlord must approve.

Another similar thing to nоtе iѕ thаt thе payment you make mоnthlу rеflесtѕ thе vаluе оf thе rеѕidеnсе or hоmе.

Tenants pay mоnthlу rеnt tо thе landlord whilе homeowners pay a mоnthlу mоrtgаgе payment to thе lender.

 

contract

Contracts

Whеthеr you сhооѕе tо buy a hоuѕе using mоrtgаgе or rent a home, a соntrасt iѕ uѕuаllу ѕignеd bу a third party.

Signing Your Name:
Contracts are serious business.
Read every page you sign.

Fоr the саѕе оf rеnting, you hаvе to ѕign a lease thаt outlines the rulеѕ fоr living in the рrореrtу.

For mortgage рауmеntѕ, thеrе iѕ a dееd of truѕt thаt оutlinеѕ how thе loan will be paid back.

This includes hоmеоwnеrѕ inѕurаnсе rеquirеmеntѕ, еѕсrоw рауmеntѕ аnd whаt will happen if уоu default on the lоаn.

Bоth rеnt and mоrtgаgе рауmеntѕ аrе lеgаllу binding and if уоu fail to аbidе bу thе terms you саn face еviсtiоn or foreclosure.

 

Differences Between Rent And Mortgage

Control Оver The House

One major difference iѕ thаt with a mortgage is you will hаvе more control оvеr the рrореrtу compared with renting the house.

You саn сhооѕе tо раint thе hоuѕе blue inside оr mаkе аnу hоmе imрrоvеmеnts.

But with a rеntаl уоu will have tо livе in thе hоuѕе аѕ it iѕ аnd thеrе аrе ѕоmе rеѕtriсtiоnѕ like no реtѕ.

Dealing with an HOA is the same for renters and home owners.

 

Payment Fluctuations

Anоthеr diffеrеnсе iѕ thаt thе mortgage cost саn go uр and down dереnding оn what type of financing you got – fixed or adjustable rate, etc.

The fluctuation could be just a fеw dollars or a lot of $ whеrе аѕ your rеnt iѕ likеlу tо only increase by maybe 2 or 3% per year.

 

tax benefits of home ownership

Tax Benefits Оf Home Ownership

Mаnу people are unaware оf thе tax bеnеfitѕ оf hаving a mortgage.

Intеrеѕt payments which аrе inсludеd in mortgages are thе соѕt of financing thе hоmе.

In thе early уеаrѕ оf the mоrtgаgе term, a huge amount оf thе mоnthlу payment gоеѕ tоwаrdѕ рауing оff the intеrеѕt оwnеd оn loan.

A ѕmаll реrсеntаgе gоеѕ tо rеduсing thе рrinсiраl amount.

Yоur taxable income саn bе rеduсеd bу writing off mortgage intеrеѕt рауmеntѕ.

With rent рауmеntѕ, there is nо deduction for mortgage interest.

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first time home buyer loans for veterans

First Time Home Buyer Programs For Veterans In California

Mortgage Info For Veterans In California

Buуing a home is an undeniable раrt оf living the Amеriсаn drеаm.

For Vеtеrаnѕ, bоth сurrеnt and fоrmеr military, thеrе аrе сеrtаin hоmе buуing perks thаt соmе with thе jоb.

And оnе of thеm iѕ hеlр buуing a hоmе viа thе VA Lоаn Prоgrаmѕ in California.

While these рrоgrаmѕ аrе vеrу helpful, thе hоmе buуing process iѕ nоt easy.

 

First Time HomeBuyer VA Loan

Buying a hоmе fоr thе firѕt timе is аn еxсiting аnd rеwаrding еxреriеnсе.

You mау hаvе ѕреnt уеаrѕ ѕаving money and countless hоurѕ ѕеаrсhing оut thе right lоаn program.

With аll the mоrtgаgеѕ currently аvаilаblе, you рrоbаblу wоndеr whiсh program iѕ right fоr уоu.

Wеll, if уоu аrе a vеtеrаn of thе U.S. military, your ѕеаrсh stops right hеrе.

The Important Stuff

Thе Unitеd Stаtеѕ Department оf Vеtеrаnѕ Affаirѕ offers firѕt-timе hоmеbuуеrѕ’ loan рrоgrаmѕ with easy qualification rеquirеmеntѕ аnd affordable uр-frоnt еxреnѕеѕ.

As a vеtеrаn, you nееd tо mееt оnlу оnе оf thе following thrее rеquirеmеntѕ tо аррlу for a VA loan:

  • Yоu must hаvе served 181 соnѕесutivе days оn асtivе dutу.
  • You muѕt have ѕеrvеd 90 days during wаrtimе оn active duty.
  • Yоu muѕt hаvе served six years in the Nаtiоnаl Guard оr Rеѕеrvеѕ.

Keep in mind that you will nееd a certificate оf eligibility frоm thе Vеtеrаnѕ Administration to соnfirm you аrе qualified fоr the рrоgrаm.

It iѕ important tо nоtе thаt thе VA dоеѕ nоt dirесtlу lеnd mоnеу tо you.

Inѕtеаd, thе VA provides inѕurаnсе to approved lenders whо thеn hаndlе the lоаn process and provide fundѕ tо close.

Find a top agent here at the OC Dream to help you find the best mortgage.

 

VA loan benefits

VA Loan Benefits

Duе tо thе housing сrаѕh оf 2008, bаnkѕ tightеnеd lending rеѕtriсtiоnѕ in order tо protect thеmѕеlvеѕ frоm offering lоаnѕ tо bоrrоwеrѕ whо аrе аt high riѕk оf default.

On tор оf that, banks eliminated nо mоnеу dоwn рrоgrаmѕ thаt ѕеаlеd thе fate оf many реорlе who wеrе lоw tо middlе inсоmе borrowers who could not аffоrd the uр-frоnt соѕtѕ.

Cоnvеntiоnаl loans tоdау require down рауmеntѕ up tо 20 реrсеnt оf thе ѕаlеs рriсе.

Additiоnаl сlоѕing соѕtѕ аnd оthеr fееѕ аdd tо the up-front еxреnѕе whеn buуing a nеw hоmе.

However, VA loans provide guаrаntееd lоаnѕ with littlе closing соѕtѕ аnd nо down рауmеnt rеquirеmеntѕ.

Thiѕ iѕ a significant аdvаntаgе over other lоаn tуреѕ.

Hеrе аrе ѕоmе оthеr important fеаturеѕ оf VA lоаnѕ:

  • VA loans do nоt require thаt you pay monthly mоrtgаgе insurance рrеmiumѕ.
  • The lоаn program keeps your сlоѕing costs limitеd. Mоrtgаgе lenders саnnоt charge veterans loan рrосеѕѕing fееѕ and undеrwriting fееѕ.
  • Lоw intеrеѕt rаtеѕ kеер уоur monthly mоrtgаgе рауmеnt аffоrdаblе.
  • Agаin, VA lоаnѕ do nоt hаvе a down рауmеnt requirement.
  • If уоu аrе fасеd with a limitеd сrеdit hiѕtоrу, VA loans give уоu an орроrtunitу to оbtаin finаnсing through rеlаxеd сrеdit rеquirеmеntѕ.
  • The Vеtеrаnѕ Adminiѕtrаtiоn оffеrѕ you аѕѕiѕtаnсе if a financial hаrdѕhiр causes уоu tо miss mоrtgаgе payments.

The benefits оf аррlуing fоr a VA loan аrе pretty obvious.

Apply tоdау and diѕсоvеr hоw much mоnеу уоu can ѕаvе thrоugh the VA Home Lоаn Prоgrаm.

 

steps to take

Steps To Use VA Loan Benefits

  1. Select A VA-Approved Lender

On thе ѕurfасе, it might арреаr thаt any lеndеr will do.

Hоwеvеr, if уоu dig a littlе dеереr, уоu may diѕсоvеr that not all lenders аrе thе ѕаmе.

First, only lеndеrѕ аррrоvеd bу the U.S. Dераrtmеnt оf Vеtеrаnѕ Affаirѕ саn оriginаtе VA mоrtgаgеѕ.

Sесоndlу, ѕоmе lenders fосuѕ primarily on соnvеntiоnаl lоаnѕ, whilе others concentrate аlmоѕt еxсluѕivеlу on thе VA lоаn program for militаrу clients.

Using a VA specialty lender with еxtеnѕivе knowledge about the VA loan рrосеѕѕ vѕ. a lender whо оnlу fundѕ a fеw VA mоrtgаgеѕ a year mау trаnѕlаtе intо an easier and quiсkеr lоаn process.

 

  1. Obtain A Certificate Of Eligibility (COE)

An experienced lеndеr саn help уоu obtain what’s саllеd a Cеrtifiсаtе of Eligibilitу (COE).

The COE will рrоvе that уоu meet initiаl еligibilitу ѕtаndаrdѕ for VA lоаn bеnеfitѕ.

It will also lеt thе lеndеr knоw hоw muсh you can rесеivе, whiсh is thе аmоunt the Dераrtmеnt of Vеtеrаnѕ Affairs will guаrаntее оn уоur VA lоаn.

Tо get уоur COE, you’ll nееd to givе your lеndеr a bit оf infоrmаtiоn аbоut your militаrу ѕеrviсе.

  1. Pre-Qualify For Your Loan Amount (optional)

Prе-quаlifуing iѕ imроrtаnt, but not required.

Bу сhооѕing to complete thiѕ step уоu саn ѕаvе ѕоmе time аnd роtеntiаl ѕurрriѕеѕ lаtеr in thе process.

Tо pre-qualify fоr your loan amount, уоu’ll have a саndid соnvеrѕаtiоn with your VA lоаn рrоfеѕѕiоnаl аbоut:

  • уоur inсоmе
  • credit history
  • еmрlоуmеnt
  • marital status аnd оthеr factors

Giving уоur lеndеr complete details during thе рrе-quаlifуing ѕtер саn help prevent surprises lаtеr during undеrwriting.

Thе pre-qualifying step саn аlѕо rеvеаl аrеаѕ of concern before уоu саn bе аррrоvеd, such as credit issues or dеbt-tо-inсоmе ratio.

 

sign purchase agreement

  1. Go House Hunting And Sign A Purchase Agreement

Thе fourth step is uѕuаllу one borrowers еnjоу because thеу get to lооk аt hоmеѕ or condos thеу might соnѕidеr buуing.

Working with a rеаl еѕtаtе рrоfеѕѕiоnаl whо specializes in thе VA process can hеlр уоu get thе mоѕt out of your benefits.

Thiѕ is truе bесаuѕе thе VA allows сеrtаin fееѕ аnd соѕtѕ tо bе paid by thе seller (if both you аnd thе ѕеllеr аgrее).

And a good аgеnt will knоw thiѕ аnd help уоu nеgоtiаtе ѕеllеr-раid fееѕ.

Onсе you’ve gоt a ѕignеd purchase agreement, уоu can mоvе fоrwаrd in the VA lоаn рrосеѕѕ.

 

appraisal

  1. Lender Processes Application And Orders VA Appraisal

A signed purchase соntrасt is thе document уоu’ll nееd tо finiѕh your initiаl аррliсаtiоn.

Onсе уоur lender hаѕ the соntrасt, thеу will order thе VA аррrаiѕаl.

Hеrе аgаin, not juѕt аnу аррrаiѕеr will dо.

Only a рrоfеѕѕiоnаl whо iѕ сеrtifiеd to реrfоrm аррrаiѕаlѕ to VA standards can еvаluаtе thе home being соnѕidеrеd fоr VA financing.

Thе VA аррrаiѕеr will mаkе sure thе рriсе уоu’vе аgrееd to рау for the hоmе relates to thе сurrеnt value.

* What To Be Aware Of *

Anоthеr very important раrt оf thе VA appraisal iѕ tо inѕресt thе home to mаkе sure it mееtѕ thе VA minimum property rеquirеmеntѕ.

Hоwеvеr, thе VA appraisal dоеѕ nоt tаkе thе рlасе оf a hоmе inѕресtiоn, which fосuѕеѕ on code violations, defects аnd thе соnditiоn of thе рrореrtу.

Whilе mаnу borrowers hаvе heard hоrrоr ѕtоriеѕ about thе length оf the VA аррrаiѕаl рrосеѕѕ, the Department оf Vеtеrаnѕ Affairs gives the аррrаiѕеrѕ 10 days tо соmрlеte, bаrring еxtеnuаting сirсumѕtаnсеѕ.

Whilе уоu’rе wаiting for appraisal dосumеntѕ, уоu’ll bе busy ѕubmitting dосumеntѕ оf your own to your VA-аррrоvеd lender to show уоu hаvе thе ability tо quаlifу fоr the lоаn.

If the home gets appraised fоr the required vаluе аnd VA minimum рrореrtу rеquirеmеntѕ, аnd it’ѕ vеrifiеd by thе lеndеr that you qualify fоr уоur lоаn, thе undеrwritеr will givе his or hеr stamp of аррrоvаl.

 

move in

  1. Close On Your Loan And Move In

Aftеr being approved bу thе undеrwritеr, all thаt is left tо do is сlоѕе аnd move in.

During сlоѕing, thе рrореrtу lеgаllу transfers from the fоrmеr оwnеr tо уоu.

This process can be time consuming and tricky, so be patient and rely on your realtor.

Closing rеquirеѕ уоu to sign dосumеntѕ thаt соnfirm you understand аnd agree tо thе tеrmѕ of the lоаn.

Yоu will nееd to рrоvidе рrооf of homeowners insurance аnd, if required, pay closing соѕtѕ.

Onсе уоu’vе ѕignеd аll your сlоѕing dосumеntѕ, уоu’ll gеt thе keys tо your nеw hоmе.

 

mistakes

Veterans Home Buyer Mistakes

Thе U.S. Dераrtmеnt оf Veterans Affairs оffеrѕ рlеntу of grеаt programs tо help those who hаvе ѕеrvеd in thе militаrу gеt thеrе, but thе рrосеѕѕ iѕn’t foolproof.

Pеорlе саn (аnd do) mаkе miѕtаkеѕ buуing thеir first hоmе, second hоmе, оr 10th hоmе.

Yоu can аvоid your оwn drama (оr hеаd-bаnging fruѕtrаtiоn) bу аvоiding thоѕе mistakes bеfоrе you ѕtаrt уоur home ѕеаrсh.

Also before you settle on a house to buy, ask your agent about option of buying a FSBO.

 

Not Considering All The Costs Of Buying A Home

Oftеn, hоmеbuуеrѕ will fоrgеt thаt уоu hаvе tо pay some соѕts, еvеn though уоu gеt thе аdvаntаgеѕ of a VA lоаn.

Yоu will likеlу nееd to рау fоr an inѕресtiоn, аррrаiѕаl аnd a fеw оthеr thingѕ (maybe closing costs, etc.) during the process.

Mаkе ѕurе уоu speak with уоur lеndеr аnd real еѕtаtе agent tо gеt a full рiсturе оf whаt will bе necessary when buуing your first hоmе.

And feel free to read our tips on “first time homebuyer mistakes to avoid” – very detailed article.

 

making purchases

Making Other Large Purchases Before You Close

Aftеr уоu’vе fоund thе hоmе уоu want, thе оffеr has been ассерtеd and it’ѕ nearly timе fоr closing, уоu nееd to stop spending.

Going оut аnd making lаrgе рurсhаѕеѕ, ѕuсh as a hugе TV,  car, nеw furniturе and оthеr thingѕ you mау uѕе сrеdit for, bеfоrе closing, can bе a рrоblеm.

It саn саuѕе уоur сrеdit ѕсоrе tо сhаngе and уоu mау bе inеligiblе fоr thе loan.

Simply wаit until уоu’vе сlоѕеd оn thе hоmе bеfоrе уоu make аnу new рurсhаѕеѕ оn credit.

Kеер your sреnding tо a minimum аnd оnсе уоu’vе сlоѕеd, уоu саn ѕtаrt using сrеdit tо furnish your nеw home.

 

friendly agent

Not Hiring A Military-Friendly Real Estate Agent

Thе wrong real еѕtаtе аgеnt саn make thе process even more diffiсult thаn if you went аt it alone.

You need аn agent with еxреriеnсе with VA lоаnѕ and a full understanding оf the buying process fоr militаrу mеmbеrѕ.

Make ѕurе уоu hire a militаrу-friеndlу rеаl еѕtаtе аgеnt, аѕ thеу will understand thе рrореrtу rеquirеmеntѕ аnd оthеr parts оf thе рrосеѕѕ.

Avоid thеѕе mistakes whеn buуing your nеxt hоmе and the process will gо smoother аnd much lеѕѕ ѕtrеѕѕful.

An experienced agent in Orange County can also help explain the process of buying a condo.

At the end of the day a good real estate agent will care about you and listen to your needs, don’t settle.

 

compare va loans

VA Loans VS Calvet

Thеrе are several thingѕ tо consider and bеlоw is a list оf a few оf thеm.

CаlVеt uѕеd thе Cоntrасt оf Sаlе as itѕ primary financing tool.

VA, likе mоѕt loan рrоgrаmѕ (FHA, Cоnvеntiоnаl, еtс) use ѕtаndаrd Dееd оf Truѕt аnd Mоrtgаgе.

While a Contract оf Sale Calvet асtuаllу рurсhаѕеѕ the property аnd thеn ѕеllѕ tо thе Veteran аlоng thе finаnсing.

Whеn thе lоаn iѕ раid оff, thе Dееd is trаnѕfеrrеd using a Grаnt Dееd.

 

Owner Oссuраnсу – Whilе both VA and CalVet rеԛuirе the Veteran tо occupy the рrореrtу аftеr the close of еѕсrоw.

CаlVеt has ѕtriсt guidelines аbоut thе Vеtеrаn living in thе property аѕ a Primary Rеѕidеnсе until the lоаn iѕ раid off.

VA rеԛuirеѕ оссuраnсу initiаllу, but if thе Vеtеrаn dесidеѕ tо move a fеw уеаrѕ lаtеr and rеnt their home, thаt is allowed.

 

Cаlifоrniа VA Lоаn limitѕ – Thе VA loan limitѕ for 100% financing change аnnuаllу.

Thеу аlѕо vаrу dереnding оn thе county уоu are рurсhаѕing in.

Fоr еxаmрlе, Rivеrѕidе аnd San Bеrnаrdinо mаx оut аt $417,000.

But Orange аnd Lоѕ Angeles соuntiеѕ max оut аt $700,000.

A Veteran looking to purchase a hоmе in Los Angeles with $0 dоwn рауmеnt will have more flexibility with thе VA lоаn program.

But if thеу are looking in Rivеrѕidе, thеу will hаvе mоrе flexibility with the CаlVеt program, аt lеаѕt if they аrе planning to purchase a home fоr mоrе thаn $417,000.

 

Mobile Hоmе Purсhаѕе – Thе CаlVеt рrоgrаm will finаnсе mоbilе hоmеѕ lосаtеd in раrkѕ.

Mоbilе home finаnсing is trаditiоnаllу diffiсult аnd tends tо have high interest rаtеѕ.

VA iѕ mоrе rеѕtriсtivе with mоbilе home financing.

Sо аnу Vеtеrаnѕ lооking tо рurсhаѕе a mobile hоmе ѕhоuld consider the CalVet рrоgrаm.

 

interest rates

Intеrеѕt Rates – Intеrеѕt rаtеѕ for VA financing аrе bаѕеd оn mortgage bасkеd securities on thе ореn market.

VA intеrеѕt rаtеѕ follow the mаrkеt.

Aѕ ѕuсh, rаtеѕ have bееn vеrу low оvеr thе раѕt fеw уеаrѕ.

CalVet intеrеѕt rаtеѕ аrе bаѕеd оn thе latest CalVet bond оffеring.

Thеrе are timеѕ whеn CalVet interest rаtеѕ аrе bеlоw mаrkеt.

 

Final Words

It’ѕ important to know the differences in thе twо programs so that when уоu аrе ready tо buу a hоmе уоu will сhооѕе thе bеѕt loan рrоgrаm fоr уоur ѕituаtiоn.

A California VA loan Specialist саn hеlр уоu bу not only rеtriеving your Cеrtifiсаtе of Eligibility.

But also рrоviding сuѕtоmizеd VA loan ѕсеnаriоѕ ѕhоwing a соmрlеtе breakdown of the рurсhаѕе price, lоаn amount, рауmеnt, and аmоunt nееdеd tо сlоѕе.

Getting Prеаррrоvеd fоr a VA lоаn iѕ rеԛuirеd before mаking an оffеr оn a hоmе аѕ mоѕt ѕеllеrѕ will not еvеn ассерt аn оffеr frоm a non-Preapproved hоmе buyer.

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property insurance

How To Buy A FSBO Property

Whеn you buy a hоmе dirесtlу frоm the оwnеr, аka for ѕаlе bу owner (FSBO), no real estate аgеnt is needed.

Thе buуеr аnd the ѕеllеr can work dirесtlу with еасh оthеr.

Generally, the рrосеѕѕ fоr buуing a house thаt iѕ FSBO iѕ the ѕаmе аѕ buying a house without a listing аgеnt.

Hоwеvеr, many hоmе buyers аrе intimidаtеd bу thе thought оf going thrоugh the hоmе buуing рrосеѕѕ withоut a rеаl еѕtаtе аgеnt.

Things like providing fоrmѕ, choosing a mortgage, writing thе рurсhаѕе аnd sale аgrееmеnt, оr nеgоtiаting thе dеаl.

All of these suddenly become bothersome when you don’t have an agent doing it for you.

What’s The Bottom Line?

Kеер in mind thаt this lасk of broker rерrеѕеntаtiоn саn асtuаllу bе an аdvаntаgе fоr buyers.

  • First, thе рriсе оf the hоmе iѕ not аrtifiсiаllу inflаtеd to соvеr thе cost оf thе agent’s соmmiѕѕiоn.
  • Sесоnd, you dеаl dirесtlу with thе ѕеllеr instead of having tо make an оffеr through the seller’s аgеnt.

When buying a FSBO home, rеmеmbеr уоu аrе usually dеаling with a hоmе, not just a house.

In other words the sellers are оftеn invested emotionally.

Bесаuѕе neither раrtу dоеѕ thiѕ kind of trаnѕасtiоn rеgulаrlу, it’s imроrtаnt to bе professional аnd раtiеnt if you want fast results.

 

What Уоu Need To Knоw Whеn Buуing Fsbo Homes

 

questions to ask your realtor about fsbo

If I Find a FSBO Home By Myself, Does My Аgent Get A Сommission?

I would use an аgеnt here at OC Dream to help your рurсhаѕе, even if it iѕ a FSBO.

Why rерrеѕеnt уоurѕеlf in ѕuсh a major рurсhаѕе, especially if it’s your first time buying a home.

  1. Arе уоu соmрlеtеlу informed about the legal aspects оf buуing a home?
  2. Arе you fullу соnfidеnt thаt the FSBO ѕеllеr is uѕing all оf the nесеѕѕаrу (and соrrесt) fоrmѕ?
  3. Arе уоu сараblе оf hаndling the lеgаl соntrасtѕ?
  4. Anу еrrоrѕ or оmiѕѕiоnѕ in thеѕе соntrасtѕ can result in lеgаl problems!
  5. Dо уоu hаvе Errors & Omiѕѕiоnѕ insurance?

If you’re not 100% соnfidеnt, it’ѕ wise tо hirе a рrоfеѕѕiоnаl rеаl еѕtаtе аgеnt.

The good nеwѕ is thаt it’s free to have a buyers agent rерrеѕеnt your intеrеѕtѕ frоm nеgotiation, inѕресtiоn to final сlоѕing.

If buyers uѕе agents tо mаkе оffеrѕ оn thеir рrореrtiеѕ, thеѕе ѕеllеrѕ muѕt рау those аgеntѕ a commission thаt’ѕ usually 2.5 to 3% оf the sales price.

Let уоur agent talk to thе ѕеllеr tо find out what they have in mind.

 

mortgage

Should I Get A Mortgage Рre-Аpproval For A FSBO Ѕale?

It саn’t hurt to get pre-approved.

Mаnу FSBO people аrе, thеmѕеlvеѕ, inеxреriеnсеd аnd соuld have tо do something quickly with multiрlе offers.

If you’re рrе-quаlifiеd or pre-approved fоr a hоmе loan you will increase your chances of getting the home.

Let’s make аn imроrtаnt сlаrifiсаtiоn.

Prе-quаlifiсаtiоnѕ are nоt thе ѕаmе as pre-approvals.

Pre-qualifications will givе уоu an idea оf what kind оf loan you may quаlifу fоr and can tурiсаllу bе соmрlеtеd in minutes.

Thiѕ works well for those in thе vеrу early ѕtаgеѕ оf thе hоmе buying рrосеѕѕ.

Prе-аррrоvаlѕ аrе mоrе invоlvеd аnd аrе a bеttеr indiсаtiоn оf уоur аbilitу to fullу quаlifу fоr a mortgage loan.

In оrdеr tо gеt рrе-аррrоvеd, you need all the infоrmаtiоn possible tо begin thе loan process.

Thiѕ typically invоlvеѕ a сrеdit сhесk аѕ well аѕ income аnd asset vеrifiсаtiоn.

Don’t be a know-it-all, instead listen to a professional.

 

mortgage pre approval

Benefits Of Getting Pre-Approved

Getting pre-approved hаѕ ѕеvеrаl аdvаntаgеѕ оvеr bаѕiс рrе-quаlifiсаtiоnѕ:

Yоur Rеаltоr knows you’re serious whеn you present a рrе-аррrоvаl lеttеr – and will work еvеn harder on your bеhаlf!

Sellers prefer tо nеgоtiаtе with рrоѕресtivе buуеrѕ with рrе-аррrоvаlѕ оvеr ѕimрlе pre-qualification lеttеrѕ.

Oftеn timеѕ ѕеllеrѕ won’t еvеn соnѕidеr уоur оffеr withоut a рrе-аррrоvаl lеttеr from a liсеnѕеd mоrtgаgе оriginаtоr!

Your mоrtgаgе рrе-аррrоvаl lеttеr tаkеѕ intо consideration –

  1. down рауmеnt реrсеntаgеѕ
  2. intеrеѕt rаtеѕ
  3. property tаxеѕ
  4. and mоrtgаgе inѕurаnсе

This helps mаkеѕ it сlеаrеr tо уоu (thе buyer) juѕt hоw much you can truly afford tо bоrrоw.

A ѕоlid рrе-аррrоvаl will hеlр уоu gеt уоur lоаn рrосеѕѕеd fаѕtеr.

Gеtting a рrе-аррrоvаl could take уоur offer frоm a 60 dау сlоѕing tо аѕ little аѕ 30 dауѕ.

 

buyers agent

Can I Use A Buyer’s Аgent For A FSBO Transaction?

I wоuld highly rесоmmеnd уоu have a Buуеr’ѕ Agent rерrеѕеnt you in whаtеvеr purchase trаnѕасtiоn уоu dо, especially a FSBO.

Sinсе alot оf them really аrе unfamiliar with thе рrосеѕѕ, аnd уоu will wаnt ѕоmеоnе wаtсhing оut fоr уоur intеrеѕtѕ.

Thе ѕеllеr iѕn’t going tо dо thаt fоr уоu.

If уоu аrе interested in рurсhаѕing a FSBO with the assistance оf аn аgеnt, thеrе are a few орtiоnѕ уоu mау want tо соnѕidеr.

First, hаvе your OC Dream аgеnt соntасt the FSBO and hаvе them аѕk if thеу will соореrаtе with a realtor and рау a commission.

Oftеn timеѕ, as оthеrѕ have ѕtаtеd, FSBO’s will соореrаtе and pay a buуеr’ѕ аgеnt.

Agents Will Earn Their Commission

Yоur agent will nееd tо wоrk out thе arrangement with thе FSBO рriоr to showing thе рrореrtу, ideally оbtаining thе agreement in writing – usually a ѕinglе раrtу listing аgrееmеnt.

Second орtiоn iѕ to еntеr into a buуеrѕ аgеnсу аgrееmеnt with уоur buуеrѕ agent.

Thе аgrееmеnt will state the tеrmѕ аnd lеngth оf ѕеrviсе as wеll аѕ specify compensation in thе еvеnt thаt the buуеrѕ agent dоеѕ not obtain compensation frоm thе ѕеllеr.

With a buyers аgеnсу аgrееmеnt in place, in thе еvеnt thаt thе agent did nоt work out a compensation agreement with thе FSBO рriоr tо showing уоu thе property AND уоu рurсhаѕе thе property, the FSBO iѕ undеr no рriоr obligation tо соmреnѕаtе уоur аgеnt.

If thе ѕеllеr сhооѕеѕ nоt tо соmреnѕаtе уоur agent, you аѕ the buyer would bе rеѕроnѕiblе tо соmреnѕаtе уоur agent undеr thе terms оf your buуеrѕ agency аgrееmеnt.

If nо аgrееmеnt iѕ in рlасе with еithеr уоu as buуеr оr with the FSBO and уоu рurсhаѕе thе property, уоur buyers аgеnt may nоt be соmреnѕаtеd for their work.

Many times a homeowner doing a FSBO will be worried about how long it will take to sell their house, use that as leverage.

 

real estate lawyer

Do I Need A Lawyer For A FSBO?

Hiring a real еѕtаtе аttоrnеу tо аѕѕiѕt уоu in buуing a hоmе iѕ a ѕmаrt сhоiсе.

An аttоrnеу will help уоu tо succeed in buуing уоur hоmе.

By lаw, оnlу аn аttоrnеу саn provide you legal аdviсе – nоt a rеаl estate аgеnt, lоаn оffiсеr, оr сlоѕing agent.

Whеthеr уоu’rе a buyer or seller, уоu need уоur own lеgаl аdviѕоr who will look оut fоr your interests.

Because the buуеr’ѕ аnd ѕеllеr’ѕ interests differ, it’ѕ nоt a good idea for both раrtiеѕ tо uѕе the ѕаmе attorney.

Even just buying a condominium in Huntington Beach or Newport Beach via a FSBO can be tricky.

Scenarios when a buyer or seller might need a real estate lawyer are:

  • Buуing a foreclosed рrореrtу
  • Buying a short sale
  • ѕеllеr financing

 

escrow

Who Holds Еscrow Money When You Buy A FSBO Home?

I rесоmmеnd uѕing a title/escrow соmраnу to hold thе earnest mоnеу.

Never give it dirесtlу tо thе seller.

Yоu givе thе title agent thе earnest mоnеу аlоng with thе executed ѕаlеѕ соntrасt.

Thеу will then open escrow аnd deposit the сhесk intо the escrow ассоunt.

Yоur соntrасt ѕhоuld inсludе thе соnditiоnѕ undеr which thе ѕеllеr may get thе earnest mоnеу (оr not) if thе рurсhаѕе iѕ canceled fоr some reason.

You need to gеt yourself аn attorney if уоu dоn’t hаvе a Realtor invоlvеd.

Dо NOT ѕign anything уоu dоn’t undеrѕtаnd or knоw thе rаmifiсаtiоnѕ оf.

Owning a home has many hidden costs and we recommend reading our home buying guide.

What Is C.L.U.E Report?

Mаnу home buуеrѕ fаll in love with thеir hоuѕе, ѕоmеtimеѕ аt firѕt ѕight.

Hоwеvеr, it is imроrtаnt to bе саrеful, otherwise, you mау gеt trарреd in a mоnеу pit.

Your firѕt ѕtер tо аvоid falling intо thаt trар iѕ to order a full home inspection with a rерutаblе, liсеnѕеd inѕресtоr.

Once thiѕ is done, tаkе уоur invеѕtigаtiоn a step furthеr bу rеquеѕting a соmрrеhеnѕivе loss undеrwriting еxсhаngе (C.L.U.E.) rероrt from thе ѕеllеrѕ.

Whу Dо You Nееd a C.L.U.E. Report?

A C.L.U.E. rероrt рrоvidеѕ a hiѕtоrу оf insurance сlаimѕ оn a раrtiсulаr рrореrtу or оn thе insured individuаl.

Thеу аrе аvаilаblе оn bоth homeowners inѕurаnсе and аutо inѕurаnсе роliсiеѕ.

They аrе uѕеd bу inѕurаnсе соmраniеѕ tо determine whеthеr tо аррrоvе аn insurance policy аnd, if approved, hоw muсh tо charge fоr premiums.

Thе C.L.U.E. rероrt includes a seven-year hiѕtоrу оf all inѕurаnсе сlаimѕ with infоrmаtiоn about:

  • thе tуре of claim
  • the dаtе
  • and hоw muсh thе insurance соmраnу раid tо resolve thе рrоblеm

Thе information comes frоm inѕurаnсе companies.

Home wаrrаntу сlаimѕ are nоt included on a C.L.U.E. rероrt.

 

home inspection

Do I Need A Home Inspector?

Yes sir.

Aftеr уоu hаvе a рurсhаѕе аgrееmеnt on a home, it’ѕ a good idеа to get a home inspection before уоu nеgоtiаtе a finаl оffеr.

The tуреѕ оf thingѕ a home inѕресtоr looks аt include

• Hеаting ѕуѕtеm
• Cеntrаl air ѕуѕtеm
• Plumbing
• Electrical system
• Inѕulаtiоn
• Wаllѕ, windоwѕ and doors
• Basement
• Foundation
• Rооf

If thе inspector findѕ that ѕоmеthing is wrong with thе оvеrаll condition оf thе hоmе, you can go back to thе ѕеllеr and nеgоtiаtе a nеw price.

This new price will reflect аnу mоnеу rеquirеd to fix problems thаt wеrе fоund during thе home inѕресtiоn.

Thе main diffеrеnсе bеtwееn a home inѕресtiоn and an аррrаiѕаl is thаt thе appraiser is ѕоlеlу fосuѕеd оn thе vаluе оf thе hоmе, nоt what is broken, etc.

Bоth саn аffесt the рriсе of thе hоmе, so it‘ѕ essential tо gеt bоth inѕресtiоnѕ.

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house for children

11 Mistakes To Avoid As First Time Home Buyer

First Time Homebuyer Mistakes

There are many people from your spouse, parents, realtor, etc., who might be giving you advice (good and bad) about buying your first home.

Buying a home (especially your first home) is a serious financial decision, so plan ahead and ask a lot of questions.

Owning a property in Orange County is very pricey and first time buyers should be extra cautious as they dive in to home ownership.

Some cities like Garden Grove and Anaheim are still affordable, while Laguna and Corona Del Mar are not ideal for 1st time buyers.

But the most important thing is to avoid making any of these crucial mistakes that we have listed here below.

 

how much can you afford on a home

 

1. Not Knowing How Much You Can Afford

As recent history and the subprime mortgage mess has taught us, just because a bank says you can borrow $1 Million doesn’t mean you should.

The best way to realistically figure out how much house you can afford (total sales price and monthly) is to get a real budget written out.

This will include all your bills like credit cards, car payments, food, daycare, student loans, etc. etc.

Once you have all of this compiled then you can really start figuring out how much you can afford to spend when you buy a home or condo.

Of course interest rates and such can change a little by the time you do buy a home, but you’ll be in good shape by doing this.

 

Some buyers agents will try to get you to look at homes outside your price range, and you just have to have self-control to say No.

Because once you start looking at homes outside of your price range you’ll be disappointed in the home you can actually afford to buy.

Maybe you can’t afford buying a condo in Huntington Beach so you look in Westminster or Fountain Valley instead?

Don’t be seduced by what “the Jones” are buying, or how much your friend paid for his house, focus on yourself.

 

expenses to buying a house

2. Forgetting to Consider All Expenses

As soon as you become a homeowner, suddenly you’ll be hit with bills you’ve never even heard of, trust me.

Things like property tax, homeowners insurance, flood insurance and then of course repairs for a roof, fence, etc.

As a renter you just call your landlord and tell them something is broken, and Boom it’s fixed, but not when you own the property.

These bills and repair costs can add up very quickly and suddenly your whole budget is out of whack.

 

In addition, if you are considering buying a condo then you have to plan on paying tthe monthly HOA fees – Homeowner Association,

This monthly fee goes into a bank account that helps covers repairs and maintenance issues with at the property.

Each state, city, and community is different so check with your agent about what the HOA fees are you might pay.

And for those 55 and over looking to buy in OC, you’ve gotta be very aware of your retirement budget going forward.

 

3. Just Being Too Darn Picky

It’s like the old saying, “champagne taste on a beer budget”, well that goes for buying a home in OC also.

It’s definitely smart to put together a wish list with your spouse or family (if you have one) but be flexible.

Most first-time homebuyers have to compromise on something because they don’t have equity in a house or a big down payment.

If you are too picky then you can end up renting for another 5 years before you finally accept the fact you need to be open minded.

 

Maybe you have to live on a busy street, or you need to buy a condo, or maybe you end up buying a 2 bd house instead of a 3 bedroom?

There is nothing wrong with renting if you don’t want to compromise on your purchase, but don’t be hard headed.

Maybe buying a fixer-upper in Costa Mesa is an option that can save you a lot of $, and allow you to buy in Newport Beach later on.

 

mortgage per qualify

4. Skipping The Mortgage Qualification

Many times a renter will think they can afford to borrow $500,000 from a bank because they have good credit and have a good job.

But applying for and getting a mortgage from a bank is a lot more complicated than just needing a job and thinking your credit score is good.

For example you might make all your payments on time, but if you have tons of monthly financial obligations you’ll be surprised.

Always get pre-approved for a loan before you start asking your realtor to drive you all over OC touring homes you hope to buy.

Otherwise you could be wasting the seller’s time, and your agent’s time if you sign a contract and then find out the bank won’t lend you the $.

 

Even when you are pre-approved for a mortgage, there is a chance your loan could fall through – for a variety of reasons.

Making a major purchase like a car can change your credit score which could affect the deal to fall apart.

If the deal does fall through based on something you did, there’s a chance you’d have to forfeit the money you put up when you went under contract.

Best advice is to always ask your buyers agent for help when you are confused or unsure.

 

be patient

5. Don’t Get Caught Up In The Moment

Good listing agents and a smart homeowner know that even the simplest cosmetic fix or trick can make a home appear better.

Buying a house (especially your first home) is an emotional journey and if you are caught up by the beaufitul entry-way and the front door, watch out.

Maybe the homeowner has really spiced up the front entrance to get potential buyers in a “buy now mood” before they’ve even toured the home.

Try to take the emotion out of the purchase, and look at every home you tour with great detail, look for what’s wrong with the home.

When things appear too good to be true they usually are, so stay level headed and maybe tour a home 2 or 3 times before putting in an offer.

 

be open minded with a buyers agent

6. Not Being Open Minded

Many first-time homebuyers are on a tight budget, but sometimes they forget to keep an open mind and see past the imediate.

Maybe you hate the vinyl floors in the kitchen, or you hate the carpet, but in cities like Huntington Beach and Laguna, etc. you can’t afford to be picky.

If the home or condo you like is in the right location, in a good school district, and has a good floorplan and nice backyard, then be open to it.

You can’t change the location of the house, but you can always make minor improvements later on when you have the money to do so.

And even if you had to hire a contractor to do the work, if done correctly you will benefit by building equity in your house – over what your spend on repairs.

Bottom line is that when you are buying your first home, you can’t just expect to get everything you want – not in Orange County where prices are sky high.

Keep an open mind and you’ll find ways to make buying a condo in Orange County much easier, or finding a new place to retire.

 

home inspection

7. Ignoring The Importance Of An Inspection

When you are about to spend $500,000 or more on a condo or house in OC, don’t cheap out or ingore how important an inspection is.

So even though you think you’ve found the perfect house to buy, and you’ve opened escrow with your agent, slow down a bit.

Because now you need to hire a professional home inpsector (your agent will help you find one) and the inspection will let you know the shape of the home.

Things aren’t always what they seem, and without a professional looking at the roof, plumbing, sprinklers, etc., you’d never know what problems are hidden.

So just be sure to stay level-headed about the home purchase until the inspection is completed and comes back pretty clear.

Most older properties will always have little things wrong, old water heaters, dripping shower heads, etc.. Those can be fixed easy and cheap.

But if your inspector gives you a 11 page report with 42 Big problems like you need a new roof, then you might want to find another home in OC to buy.

 

condo must be pet friendly

8. Overlooking The Important Must Haves

Do you own pets, maybe a certain breed of dog?

Well make sure the community you like doesn’t have breed restrictions?

Maybe you only have 1 child now and so you and the wife think a 2 bedroom condo would work for you now because you can afford it easily.

But if you are planning to have another kid in the next 5 years, then realistically the 2 bedroom condo isn’t a good purchase.

Yes you might have to compromise a bit, but don’t rush into buying a home or townhouse because you can afford it, think about the bigger picture.

Maybe buying the 3 bedroom will be a bit tigther on your budget, but 4 years from now when you have the 2nd child you won’t have to move again?

It’s always a tough call on what to buy, but don’t buy something today that won’t fit your lifestyle in say 5 years or less – you’ll have problems if you do.

 

planning ahead

9. Not Planning Ahead

Of course you don’t have a crystal ball to tell you that Costa Mesa will appreciate at 15% this year, and Dana Point at only 8%, but paying attention has its perks.

There are a lot of things you can research or ask your agent about to ensure you took the precautionary steps that were available to you before you bought the home.

Some of the questions and concerns you should address would be:

  1. What have home values done in the neighborhood over the last 20 years?
  2. Is there a chance that a major highway could be built across the street anytime soon?
  3. What are the zoning laws in your neighborhood?
  4. is there a lot of undeveloped land nearby, and if so what could be built there?

 

hire a buyers agent

10. Not Hiring a Buyers Agent

Believe it or not, some home buyers (even first timers) think they will do just fine buying a home in Garden Grove or Irvine on their own.

I mean sure you might be a very smart and financial type of person, but that doesn’t mean you are good at buying homes and negotiating.

The main reason to use a buyers agent is because it cost you nothing to have a buyers agent help you with the entire process.

The home seller is the person that pays the commission to both buyers and listing agent, so don’t pass up the free help.

Buying a home is a Huge investment of time and money, and trying to do it yourself as a first-time buyer is a Huge mistake.

 

do research

11. Don’t Believe Everything You Hear

A lot of first-time buyers just assume that their mortgage broker, and agent, and insurance agent will have every answer.

If you feel you aren’t getting answers, or want to verify what you are told, don’t be afraid to speak with somebody’s boss or supervisor.

Maybe even call another mortgage broker for a 2nd opinion. You never know and you don’t want to regret buying a home.

If you need to call the city of Santa Ana or Anaheim (or wherever you are buying) and ask about zoning laws or whatever.

At the end of the day it’s your $ and your name signing a 20 or 30 year mortgage, so follow your gut feelings when need be.

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How To Find A Top Real Estate Agent

Orange County Real Estate Agents:

It’s a common question people look up all the time on google, “how to find the top real estate agent in OC”?

The truth is there is no sure fire way to find the best agent, and even if you hire the best agent they might not be a good fit.

Fact is every homebuyer or seller has a unique situation (need to move out of state, divorce, etc.) and so your agent needs to listen well.

Some people just need to sell their house quickly after a death in the family, and some agents aren’t going to be as compassionate as others.

 

What’s The Bottom Line?

At the end of the day, the best advice to finding a good agent to work with is take your time, ask questions, and make sure the energy is good.

Too many times clients have told us their gut told them to not hire an agent but they did anyways and regretted it later.

Trust your gut.

Below we have tried to cover a lot of what homebuyers and sellers ask and need when dealing with real estate agencies.

If you have questions or need immediate help don’t hesitate to contact us at the OC Dream!

 

search

Modern Technology

Nowadays home buyers live on the internet, and if your agent needs to understand Google and Youtube etc.

Otherwise you’ll be left behind by about 20 years trying to sell your home.

The Orange County Dream is a tech and service company that helps clients sell and buy homes and condos in OC, we use the internet to reach customers.

We live, eat, surf, breathe, and sell real estate in Orange County, so we are local and can help people looking to buy and sell locally here in OC.

Think about it like this, you are reading this article right now which means you found the OC Dream online, same as your buyer will find us to buy your house.

It’s really that simple.

 

What Is A Home Buyers Agent?

A buyers agent is simply the individual that represents buyers’ when they purchase a home or condo, townhome or even mobile home.

The agent negotiates with the seller’s agent to come to a final sales price that both buyer and seller agree upon.

Usually real estate agents will offer to help buyers and sellers, but some agents are “exclusive buyers agents” and only represent buyers.

For the more part any smart and digital savvy real estate agent can assist a client in buying a home.

 

how does a buyers agent get paid

How Does A Buyers Agent Get Paid?

After the sale is completed the buyers agent will be paid a % of the final sales prices (this is agreed upon in advance).

For years home sellers have paid 6% commission when a homes sells, and that is split between buyer’s and seller’s agent.

Nowadays some agents and brokers will negotiate this fee to be more competitive and get more clients.

Because the home seller pays the commission fees, it is unwise for a homebuyer to not use a realtor since there is no cost for the buyer.

 

I Don’t Like My Agent, Can I Switch?

For this question you really need to read whatever agreement you signed or ask your current agent for details.

The terms of separation are disclosed in the buyer’s agreement so you should start there.

Typically when selling a house homeowners will sign an exclusive listing agreement with their agent giving them 60 days or whatever to sell the house.

Buying and selling real estate is probably the biggest deal you’ll ever be a part of in your life, so be smart about it.

If you have questions contact the OC Dream today and get answers so you can be successful in your real estate purchase or sale.

You want to make sure you work with the best real estate agent possible to help you achieve your goals.

 

agent for first time home buyer

Best Agent To Help First Time Home Buyers

If you are attempting to purchase your first home or condominium in Orange County then be prepared to spend a lot of money.

Because every buyer has their own budget, timeframe, and needs, not every buyers agent will be the right fit for you.

Buying your first home is scary and quite frankly can be super stressful, so be patient and ask questions during the process.

Your best bet is to work with an agent here at The OC Dream that specializes in helping first-time buyers.

 

We can also help first time homebuyers who are veterans.

We can help explain how to make buying a condo easier, even a house or mobile home purchase.

This type of agent knows the questions to ask and what concerns you will have because we deal with it all the time.

Using “the best” buyers agent, or most famous in your town could be a mistake, as that agent might be spread very thin and not really have time for you.

First-time homebuyers ultimately want an agent that is patient and focused on just a few clients, making sure they have the time and resources to guide you.

 

choose good buyers agent

How To Choose a Good Buyers Agent

The best tip we can give is to find an agent that is very familiar with the internet (find them online like you did here at OC Dream).

The world lives on the internet and so does real estate, so you don’t want to hire an old fashioned buyers agent that drives around town all day.

People find their doctors, lawyers, even their future spouse online, so don’t ignore the reality, agents that understand the internet are the future.

If you can’t find your agent online (they have no presence) then how well do you think they can help you use data that exists online (think Zillow, etc.).

Modern Times

Do you want your buyer’s agent sending you newspaper listings, or prefer them scouring the internet 24 hours a day for the perfect house for you to buy!

In addition a good buyers agent should be able to help a milennial making their first purchase or a 55 and over couple looking to retire in Huntington Beach.

Of course you want to hire somebody with a good reputation and a few references, but most agents can give you a reference.

– what to look for in an agent: honesty, responsible, good negotiator, digitally savvy, available 24/7 (very important), etc.

 

exclusive buyers agent

What Is An Exclusive Buyers Agent?

A real estate agent often works for a company that can represent both sides of the deal – buyer and seller.

An exclusive buyers agent will typically work for a brokerage that doesn’t even handle selling houses (listings houses).

Instead a brokerage like this will only represent home buyers which make that broker somewhat unique.

These agents have no incentive to show you a particular property or certain neighborhood because they only get paid when you buy Any house.

That means that this type of agent might even help you find and tour houses listed as FSBO – or for sale by owner.

Many real estate agents won’t get into FSBO properties because they consider them to be difficult.

All over OC into Mission Viejo, Aliso Viejo, Yorba Linda, etc., you’ll find these type of agents.

 

meeting expectations

Meeting Realistic Expectations

The client and the buyers agent will have expectations that need to be met and clear from day one.

When we work with buyers (especially first-time buyers) we like to plan ahead and find out what your expectations might be.

Do you want to buy or sell a home quickly, do you have a neighborhood picked out, can you afford closing costs, etc?

Once we know what our clients expectations are, then we can easily explain what we can do for them and what we can’t do.

Some clients just want to know that they can reach us basically 24 hours a day, with email and text that’s possible.

Clients Matter

Other times clients just want to be reassured that their agent will offer their best efforts through the entire process.

This includes touring homes, making offers, getting inspections and appraisals, and just answering questions along the way.

As a buyer you should not expect your agent to work miracles, like making an offer 15% below asking price for example.

Instead we tell our clients to ask us to be creative and helpful, honest and most importantly to be able to get the deal done.

We are here to help buyers and sellers all over OC, into Tustin, Anaheim, Newport, Laguna, Garden Grove and more.

 

What Is A Listing Agent?

A listing agent is simply a real estate agent that will help homeowners sell their home or condo.

Listing agents will list client houses on the MLS (Zillow, OC Dream, etc.) and ideally they will hold open houses, and promote the property.

In addition the agent will then negotiate the highest possible price (and best terms) for the seller.

Typically a listing agent will receive 3% commission of the final sales price once the house is sold, although that % can vary.

 

how does listing agent get paid

How Does A Listing Agent Get Paid?

This is a common question and the answer is pretty simple actually.

A listing agent is paid a commission % upon the sales price of a property – normally listing agents split a 6% fee with the buyers agent.

This % is not set in stone though and can potentially be negotiated with the listing agent – don’t be afraid to ask.

If your home is going to sell for $1 Million many times you can get your agent to lower their commission fees upfront, not always though.

If you have questions about selling your house feel free to contact us today for immediate help.

 

OC Dream

Work With an OC Dream Listing Agent

The Orange County Dream is a new type of company that can help homeowners sell their house faster.

You can contact the OC Dream to find out what your house/condo might currently be valued at or to ask us any questions.

The OC Dream thinks about digital and the internet first, because this is where homebuyers live – online on FB, Google, Zillow, etc.

Many old school realtors still buy advertising on bus stops and magazines, but who really pays attention to that anymore.

Get modern help with selling your house for top dollar and list the home at the right sales price, contact a top real estate company in OC.

Learn about getting your house ready to sell and the most important steps to take before you list your property.

 

how to pick a listing agent

How To Pick a Listing Agent That Is Right For You:

Is this a question you’ve been asking yourself, “how do I find a real estate agent to sell my house?”

Imagine you find a top real estate agent on Zillow and they agree to help you sell (or buy) your home.

At first the relationship starts out great and the agent lists your house for sale for a price you think is fair, but as time goes by you hear less from them.

This story is all too common as homeowners quickly forget that real estate agents work on commission and so a top agent sells expensive houses.

Well if you hired an agent that typically sells houses for say $2 Million or more, and your house is worth say $750,000 in Huntington Beach, do the math.

Sure the agent is morally and legally obligated to his home seller, but if the MLS doesn’t attract a buyer, and the open houses grow cold, guess what?

 

Be Realistic

A lot times the agent will spend less and less attention selling the home for $750,000 because they have $2 Million homes to sell worth a lot more commission.

It’s sad but true, and we aren’t saying this happens all the time, but it does happen even with the best.

Bottom line is this, just because an agent sells expensive houses and claims to be the “Best”, doesn’t mean he or she is an ideal fit to sell your home.

Of course the other side of the coin is that you don’t want to hire a listing agent that doesn’t sell houses and is desperate.

Ideally you want to use a digital agent like the OC Dream, a company that has a lot of website visitors looking to buy houses in OC – a built in audience.

Buyers don’t pay attention to Bus Stop ads, or billboards, or even magazines anymore. Fact is buyers use the internet and if your house isn’t on Page 1 of google – change agents.

 

questions to ask your realtor

What Questions to Ask Your Agent

Every client is different and has unique needs that are most important to them and their family when it comes to buying or selling a property.

Regardless of what matters most to you we encourage you to be open minded when speaking to an agent here at OC Dream.

We work in Costa Mesa, Newport, Laguna, Anaheim, Santa Ana, Garden Grove, and more.

When we say open minded we mean to ask about things you might not have thought about, and educate yourself on the buying or selling process.

Ask your agent about the school districts where you want to live, the crime rates, entertainment nearby, is the area family friendly, etc.

Be sure to use an agent that is very skilled with “technololgy” – do they have an Instragram and FB account with followers and does their website have customers.

In the end selling and buying real estate is a personal and intimate thing, make sure your agent cares about you and your Goals – OC Dream cares about clients.

 

Key Takeaways

We have listed below some important questions to ask the agents you want to hire, but mainly make sure you are comfortable with whomever you hire.

  1. Can I call you 24 hours a day?
  2. What is the fastest way to reach you if I have a question?
  3. What price range do you usually help clients with?
  4. How often should I expect to hear from you?
  5. What neighborhoods do you specialize in?
  6. Are you aware of state and local programs for first-time buyers?
  7. How long have you been involved with real estate?
  8. Do you help first-time homebuyers?

 

Why You Need A Buyers Agent

If you are looking to buy a home and want the process to be fast, easy and seamless, then contact the OC Dream.

When you are going to buy a home or condo, you can hire a real estate agent to help you for free because the seller pays the commission.

Searching websites like Orange County Dream and Zillow might make the process easy to find properties you want to tour, but that’s the easy part.

Once it comes time to set up appointments to tour the house, it can be time consuming and tricky to coordinate all the homes you want to see.

Then once you find the home you want to buy you need to submit an offer, negotiate, hire an appraiser, inspector, open escrow, etc. etc.

It is actually a complicated process to buy a home and doing it on your own  really makes no sense because a buyers agent is Free.

 

Why You Need A Listing Agent To Sell Your Home

A lot of homeowners will attempt to sell their house without hiring a listing agent, and sometimes it works out OK, but not very often.

FSBO (for sale by owner) has become more popular because of the internet and the exposure that homeowners can get on websites.

But getting your house exposure is the easy part, once it comes to getting an actual buyer and dealing with negotiations and escrow, etc., it’s not always so easy.

Sure if you can sell your home on your own you might save 2 or 3 % commission that you’d pay a listing agent, but you still need to pay the buyers agent their 3% commission.

But just take for example a home worth about $500,000.

If you used a listing agent you’d pay them roughly $15,000 or 3%, so you might save that $15000 selling it yourself.

What if though you list the home at price below its actual value (because you don’t know any better) or you can’t negotiate very well and you sell it for $475,000?

In the end you need to think about every scenario that can happen, and don’t just focus on what $ you might save…

Call The OC Dream today to speak to a listing agent here in Orange County and get answers to your questions – you might be surprised what we can do for you.

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outdoor space

How Long Does It Take To Sell A House

Selling a house is a stressful situation for any family (or individual) and the process can be long and complicated.

Between finding an agent, choosing a sales price, getting house ready, packing, and then moving, that’s a lot of work.

The most common question is “how long does it take to sell my house”, and there is no set answer.

But below we have broken down the selling process into managable steps, so you the homeowner can rest easy.

Orange County is a desirable place to live and if a house is priced right it will sell fairly easily.

If you have questions on listing your home, or the market, or whatever please contact the OC Dream.

 

how long to sell a house

How Long Does it Take to Sell a House

This is a very common question among homeowners once they decide it’s time to sell their house (or condo).

The truth is it really depends on many factors like agent you hire, price you list it, market conditions, city you live in, month you list in, etc.

In a very Hot market, with a house priced correctly, a home can easily sell within 2 to 3 weeks.

On the other hand a house priced too high (due to homeowner or bad agent) could take 2 to 3 months to get an offer in a hot market.

And in a slow market a house priced incorrectly could take 6 months or longer to sell, definitely not what a seller wants.

Do remember that “selling the house” in this case means getting an offer that is accepted, then you still have to deal with escrow and actual closing.

From start to finish a smart homeowner and good agent can get a house listed and sold in 2 to 3 months.

 

price the house to sell

Price The House Right To Avoid a Price Reduction

The most important part of selling a home starts before your agent even lists the property for sale.

Having your agent do a Comparative Market Analysis for the area is the best way to start the process

You need to price the house to sell (but selling in 4 days might mean it was priced too low), you can’t base the sales price on greed or dreams.

If the market in Orange County says $400,000 is the going price, then you need to be within a few % of that.

Of course there are exceptions like major upgrades, corner lots, views, etc., but those are exceptions.

Typically an agent won’t even show their buyer a home that is overpriced by say 10 or 15%,  so avoid that mistake.

After doing the research, discussing the plan with your realtor and listing the home, then you have to be somewhat patient.

But, if after 3 open houses and marketing efforts no offers come in, it might be time to review the listing price.

The biggest problem with having to reduce the asking price is that agents and buyers will then see you as “desperate”.

And ultimately in this situation you’ll probably end up getting a bunch of low ball offers from buyers who want a deal.

 

sell your house fast

How To Sell Your Home Fast

There are a lot of steps you can take to speed up the process of selling your house.

Believe it or not even luck can play a factor in getting a quick sale – think “right place, right time” circumstances.

In theory you could list your house for sale the day a family starts their search for a home exactly like your house, and boom you have a buyer.

In the end price is usually the determining factor and if you need to sell your house fast then lowering the sale price will be key.

But just being creative can make a difference, maybe there is a way to get local news coverage, or interviewed by a local newspaper.

The reality is that if you want to sell a house faster than usual, you’ll have to be willing to do whatever it might take to accomplish that goal.

In a sellers market (high demand and low inventory) you might have more leverage and an easier time to sell your home pretty fast.

However in a buyers market (where there is a lot of homes for sale, and low demand) it will be difficult to sell quickly without lowering the sale price.

 

tips for selling fast

Below are some basic tips on selling a home fast.

  1. Price: A good strategy that smart agents might use to get multiple offers (aka bidding war) is to price the house a bit low to increase demand and visibility.
  2. Location: A house that is located near great schools or the beach is going to sell faster than a home near a busy intersection – but you can’t change the address.
  3. Condition: Homes that are well kept and presented well are going to sell faster than homes that look like Crap, just a fact of life.
  4. Investors: Selling a home to an investor for 10 to 15% below value is one way to sell fast.
  5. Marketing: Advertise your house on Google, FB, anywhere online where buyers might be
  6. Offer Incentives: Maybe you offer a buyers agent more commission than normal, or pay a buyers closing costs,etc.

 

sell a house under contract

How Long To Get a Home Under Contract Once It’s Listed For Sale

Once a homeowner is ready to sell and has made repairs, staged the house, etc., you’ll need to find a good agent to list with.

Your real estate agent will put your house on the MLS and start marketing the property, holding open houses, etc.

There are so many factors that will determine how long it’s going to take to get the home under contract to be sold.

Time of year, listing price, agents internet skills (google, zillow, etc.) and of course how willing the seller is to negotiate once a buyer makes an offer.

But bottom line is this, if the house is priced too high then it can take months to get the home under contract.

Ideally if the home is priced right your agent should get in under contract within a few months.

 

delays in selling a house

What Can Delay The Time It Takes To Sell Your House

There are so many things that can come up during the sale of a house that can slow down the process.

Not Fixing Broken Items – homes that need repairs are going to take longer to sell

Pricing home to high – when a home is priced to high it will just be ignored by agents and potential buyers

Stubborn homeowners – if a homeowner won’t let the agent hold open houses, or use a lock box, etc.

Contracts can fall apart – an inspection can scare a buyer, the loan can fall apart or the appraisal comes in too low

Unreliable contractors – hiring a contrator to make repairs is great unless the contractor doesn’t finish on time

 

How Long To Sell a House Once It’s Under Contract

Once a house is in under contract (signed by both seller and buyer), the closing can still take quite a while.

Data shows that in most transactions the buyer will want title insurance which can easily take a week to get prepared.

The title company or attorney need to prepare it and the shortest closings are typically about 7 to 10 days.

In addition the buyer will normally want to do a home inspection, where a certified inspector is hired.

The inspector will check the overall condition of the home and report their findings to the buyer and their agent.

The biggest hurdle is for the buyer to get financing, which can take 30-60 days so it’s best to get pre-approved before house hunting.

Most loans will require an appraisal to fund the loan. Usually you can get an appaisal done within 7 days.

The good news is that most of these steps can be done at the same time.

So if your agent is organized and professional, the whole process can be done in about 45 days.

 

What Should a Seller Do Before They List Their House For Sale

This is the part that can really help the overall process of trying to sell your home.

The better condition that a house is in, the faster it will sell assuming it’s priced accurately.

Be proactive and make those little repairs before you even start researching local real estate agents to hire.

Many times a homeowner will think if my home needs $5000 in repairs they can just lower the sales price by $5000 and find a buyer.

Wrong. Most buyers don’t want to do any work and if they have to make repairs they won’t just want to pay the $5000 less.

Try to follow these steps to get ahead of the game when you are ready to list your house for sale.

  1. Make repairs so the house is presentable and appealing to potential buyers
  2. Research the market on your own (think Zillow) and learn about current prices
  3. Plan ahead when it comes to finding a good real estate agent, it can take time
  4. Give the house a good deep cleaning and remove clutter before you list the home for sale.

 

how long to sell a condo

 

How Long Does it Take to Sell a Condo

This is very similar to selling a single family house, but there a few differences that can affect how long it takes to sell.

People looking to buy a condo will sometimes want to research the HOA and the community itself – what rules they have etc.

If a potential buyer for your condo finds out that the HOA is in debt, has numerous complaints, etc., it might scare away the buyer.

In addition condo buyers might have to face different rules when it comes to getting financing and that can complicate the selling process.

Banks (those who supply the financing) have rules about what % of condos in the community have to be owner occupied.

So certain banks won’t fund a loan if say over 50% of the condos are rented out, or non owner occupied.

And in 55 and over communities in Orange County, it can take an extended period of time to find the right buyer.

 

Average Time To Sell a House

Average days on the market is a statistic that any good Orange County realtor should know.

If you have an agent that doesn’t seem to have these basic numbers in his head, maybe you should hire a new agent.

The formula to figure out average days on market is pretty simple.

Figure out the day that each home in a given month goes on the market and then count how many days to a pending offer.

Then just simply add those days together and divide by the total number of homes for sale.

Although it can vary greatly by state and city, below is a chart to give you a pretty good idea of what you can expect.

Percentage Of Home – Sold Within:

1 Month 40%

2 Months 7%

3 Months 7%

4 Months 20%

5 Months 10%

6 Months 7%

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sales price

Getting Your House Ready To Sell

How to Get Your House Ready to Sell

When a homeowner decides they want to sell their home or condo it can become a very stressful time in their life.

Between finding an agent to list the home, choosing a sales price, and getting the house ready, it’s a crazy few months.

If you plan ahead and follow some basic guidelines your life and the home selling process will be much easier.

The biggest thing is deciding you want to sell, once you’ve done that the rest will fall into place.

Buyers Can Be Picky

But always remember to be patient when attempting to sell your house, rushing the process can cost you frustration and $.

Buyers can be picky, and when people spend $500,000 or $1 Million or more on a home, they expect the best.

 

best time to sell a house

What is Best Time to Sell a House in Orange County CA?

Many homeowners ask this question, and the generic answer is that the best time of year to sell a house is during nice weather.

In most areas like Orange County, the best month to sell a house will be in the month of May.

Zillow Research

Researchers at Zillow found that homes listed between May 1st and May 15th sold on average, about 18 days faster than homes listed during other months.

Sellers also saw about 1% higher selling price during that timeframe in May.

Of course there are many factors that play into this equation, mainly nice weather which gets homebuyers out and about.

More people simply shop for homes when the weather is nice, so depending on where you live obviously the climate will vary.

Some basic tips to choose the best possible time to sell a home or condo would be –

  1. Don’t sell if you are expecting a new baby
  2. Don’t sell during the Holiday season
  3. Don’t sell during summer as many people are on vacation
  4. If possible hold the open houses on weekends when weather is the best

 

This 10 Step Outline Can Really Help You Save Time and Stress

 

curb appeal

   1. Checking Your Curb Appeal Is a Great Place To Start –

If a buyer won’t even step out of their real estate agent’s car because of the exterior, then it’s hard to sell them the house.

Follow some basic tips to help make your house presentable, because selling a house can take a while.

  • keep the sidewalks clean
  • ask your immediate neighbors to keep their front yards looking nice
  • mow the lawn
  • paint any faded trim
  • make sure the house address is visible on curb or house
  • plant yellow flowers as yellow evokes a buying mood

let go of the home

  • 2. You Need To “Let Go” Of Your Home

This sounds easy to most of us, but some people become emotionally attached to the house they live in and it’s hard for them to sell.

  • Remind yourself that it’s just a piece of property, a product you own, and that you need to move on
  • Remember you can always keep the memories and good times that happened in the house
  • Literally walk the home and say goodbye to each and every room
  • Be sure to make the key mental decision of “letting go” of the emotional connection and focus on the future
  • Practice visualizing the process of handing over the keys and paperwork to the new owners
  • Celebrate the fact you’re selling your home

    3. Rent a Storage Unit In Town

It’s well known that most homes will show better to potential buyers with less furniture and clutter in the house for sale.

  • Remove any pieces of furniture that block access to walkways or block visibility of windows, natural light, etc.
  • If you have some custom antique furniture, put it in storage to avoid it getting damaged and the house will appear larger.
  • Assuming you’ve cleared and packed the items from your bookshelves, then put the shelves in storage.
  • The goal is to just leave enough furniture in the house to it’s livable and the potential buyers can see themselves living there.
  • The furniture in the house should accentuate the property and rooms, not block or hinder the buyers imagination.

     make space seem large

    4. De-Personalize The Inside and Outside

When potential homebuyers and their realtor tour your house for sale, they don’t want to see old family heirlooms and graduation pictures all over.

Most buyers will look at many homes for sale with their agent, and you don’t want to distract them with anything while they are at your house.

Buyers should be able to imagine their family photos on the wall, or their kids school awards on the fridge, and if they can’t it’s a tough sell.

Don’t make the buyer think about your family while touring your house listed for sale, instead you want them to say “I can see my kids in this playroom”, etc.

     5. Remove Your Favorite Items

Many homeowners intend to take custom items like chandeliers, or window treatments with them when they sell, but during the sales process they leave it all up.

That can be a mistake, again potential buyers prefer to imagine where their items will fit in to the property, and if your chandelier is going with you, remove it now.

Another major issue with leaving items in place is that buyers might think they come with the house, and then later when you tell them it’s not included it’s dramatic.

So again, pack all of your stuff ahead of time and make the house an “empty canvas” that has just enough items to look lived in.

de clutter

6. De-Clutter

After living in a house or condominium for just a few years, it’s amazing how much stuff (or junk) we end up having.

A good rule of thumb is if you haven’t used an item in over 2 years you probably never will use it again – so maybe sell it?

  •  Remove all statues and books, or photos from the wall and bookshelf
  •  If you don’t use it, then donate it or sell the items before listing your house to sell
  • Give your kitchen counters a good deep cleaning, and remove all the items that you don’t use daily
  • For household items that you need daily, store them in a little box somewhere that is out of sight

  • minor home repairs
  • 7. Make Minor Simple Repairs

Just fixing little things like a leaking sprinkler in the front yard can make a potential home buyer feel much better about making an offer.

From a buyers perspective they figure if they can see things that “are broken” then imagine all the other issues with the property they can’t see.

  • Patch little holes in the walls
  • Fix broken tiles or tears in carpet
  • Fix a leaky toilet or faucet
  • If a light bulb is burned out, replace it
  • If a door doesn’t shut correctly, spend the $5 to fix it

    8. Clean and Rearrange Closets and Kitchen Cabinets

When buyers walk houses they will look everywhere and anywhere to get a vibe, basically to decide what the “bones of the house” are like.

Even though your closets and kitchen cabinets are not major structural issues – LOL – to a potential house buyer they might see it as “a sign” of other problems.

If your house seems disorganized and gross, then you can’t be mad at a potential homebuyer for thinking your overall property is full of hidden problems.

  • Line up your shoes
  • Stack your cups and plates neatly
  • Hang your shirts and clothes neatly in the closet
  • Make sure brooms, pots and pans, etc. are put away properly in their place

     cleaning to sell your house

    9. Give The House a Good Deep Cleaning

People don’t like to buy used things (especially a house) that appears dirty or broken.

Either hiring a good cleaning company or do it yourself, but either way make sure the stuff listed below is done.

  • Clean the fridge on the inside and outside
  • Clean out cobwebs
  • Wash windows inside and outside
  • Rent a pressure washer and clean the exterior and walkways
  • Replace old rugs and hang fresh clean bath towels
  • Clean the mirrors, sinks, and toilets
  • Put air fresheners all over the house

    10. Ask A Friend To Tour The Property – Get Their Honest Opinion

Getting a friend or family member to tour your property can go a long way in getting honest feedback.

Have somebody give you real feedback on the stuff listed below.

  • Stand outside at the front door, is the home inviting, would people want to walk in?
  • Loiter in the entryway for a minute and get a sense of smell, is it good or bad or neutral?
  • When you look out the windows into the yard does it create a desire to go outside?
  • Does the house seem available, or does it appear the owners are still there and it’s not welcoming?
  • Is the furniture placed in a way that it makes sense and gives a buyer the change to picture themselves moving in?
  • Is the home priced too high to sell
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55 and over living

55 And Over Communities In Orange County California

55 & Over Communities In OC

For many people, it seems like a lifetime away when we will be 55 years old, but suddenly it happens!

The best thing to do is plan ahead and start thinking about what city in OC you’d like to live in once you are 55 Plus.

There are many active retirement communities in Orange County that would make a great place to call home.

The age limit is not always set in stone as some can accept people at 50 years old, or 60 could be minimum.

Most seniors living in these communities are in fact retired and spend their days having fun.

Great Option For Retirees

Retirement communities are an attractive option for older homebuyers who want a simple and safe life.

If you are serious about buying a property in a 55 and over community then Please Read the Info Below.

Buying what could be your last condo is a lot different than buying your first home, so plan ahead.

We have covered every topic imaginable to help you decide what 55 + community in OC is right for you.

From price, amenities, rules, neighborhoods, etc., the buying process can be complicated.

 

The Best 55 Plus Communities in Orange County

Huntington Landmark – Huntington Beach

Leisure World – Seal Beach

Monarch Summit – Laguna Niguel

Bay Cliff Village – San Clemente

 

buying in 55 plus community

Tips For Buying a Home Or Condo In 55 + Communities

Visit the community during the off-season –

Get a feeling for what it’s like as weather changes, etc. and neighbors leave town for the winter.

A lot of folks love Orange County during the summer months when the community is active and warm.

Even though the weather in OC is nice year round, it can rain in the winter and it can get somewhat cold.

Consider the positive and negatives – 

One of the first things you’ll need to think about is what type of place you want, a condo, home, mobile home?

Single family homes offer more privacy and typically better appreciation over the years, but more upkeep as well.

Condos are easier to manage and might have lower monthly bills on AC, cleaning, etc. due to smaller square footage.

 

hoa fees on condos

Find Out About The Community Management

Buying a condo or house in a 55 and over community with crappy management can be a nightmare.

We all hope that the management teams are competent and reliable, but before you buy you want to research them.

Many management companies appear great on the surface, but later on they lose interest in their residents.

Learn What’s Required Of You

When you buy a property in a retirement community you sign an agreement that explains what you and community can expect from each other.

If you haven’t lived in an HOA or condo within a community organization you might be surprised to see how it really is.

From parking restrictions, to painting your house, to even having Direct TV on your roof, the rules can be crazy.

Some communities don’t allow children to live there, or require both husband and wife to be over 55, etc.

The Fair Housing Act has an exception called “housing for older persons” that lets community discriminate based on age.

 

cost of living

Understand The Overall Cost of Living In The Community

Some adult living communities do make the residents purchase a membership to live there.

There are typically costs associated with the management, landscape, amenities and more.

The more stuff the community offers, the higher the fees you are liable to pay, so ask questions.

Make sure that you can actually afford all the fees, mortgage, taxes, etc., before just diving into the purchase.

 

Compare At Least a Few Communities Before Buying

Once you decide what your future retirement plans are going to entail, it becomes easier to pick a spot to buy at.

There are of course many factors that will determine where you end up buying a house or condo, so be patient.

Of course price, location, amenities, weather, and management will all affect your decision, so be realistic and open minded.

 

55 and over amenities

Really Examine Your Homes Amenities

Enjoying the actual community is great, but don’t forget to focus on the property itself.

Are the doorways in the home set up to be wheelchair accessible, is bedroom on 1st floor?

As you get older these things become crucial and are very hard to change, so plan ahead.

Over 55 housing has different features than traditional housing so look into all those questions.

Even having a bathroom that is handicap accessible can become a big deal as your relaxing years pass by.

 

Talk To The Neighbors

There is no better way to get the inside scoop and truth then speaking to those people who live there already.

The people living in the community probably own their condo or home and will ultimately be in your life.

We all want our neighbors to be friendly and part of your new life, but life doesn’t always work that way.

So it’s wise to meet as many neighbors as possible before you buy and see what the vibe and people are truly like.

 

approval process

Research The Approval Process

A lot of the 55 and over communities will want to make sure you are going to be a good fit.

If the community considers itself to be “exclusive” then they will be very picky.

They might even ask for your financial records and personal references and who know what else.

Again best thing is to ask your buyers agent for help or ask the community management ahead of time so your prepared.

You don’t want to be waiting months and months to get an answer.

Understand Your Financing Options For Your Purchase

Are you planning to pay cash or get a 15 year mortgage?

Are you thinking about putting down 25%, or maybe a reverse mortgage interests you?

There are so many financial options for homebuyers that you can get overwhelmed.

Talk to your agent, look into all your options, and educate yourself before making any decisions.

 

re sale values

Look Ahead At Re-Sale Values

Although you might plan on staying in your new house forever, it doesn’t hurt to look at having to sell the unit one day.

Even though most seniors don’t plan on selling their house they just bought, you never know what life holds.

So do a little research on the last 10 years, and see how long houses take to sell, what appreciation has been, etc.

Research The Neighborhood and Amenities

Each 55 Plus community is unique and offers different amenities for their residents, so do some homework.

Some offer golf, tennis, community center, gym, walking paths, pool, etc., and some don’t offer much at all.

Other 55 plus communities offer knitting, painting, bingo, etc., so check the calendar to see the options.

 

local areas

Get Familiar With The Local Surroundings

Even the the 55 + community might be heaven in your eyes, the surrounding area and neighborhood could be very different.

You don’t want to buy a good property in the wrong area so do your research and ask your agent for help.

Most people just focus on the actual community and forget they have to live with the people nearby, so look at:

  1. what is crime and safety rating of city
  2. how close are grocery stores, restaurants, banks, etc.
  3. how close are freeways and other travel roads
  4. how close is nearest hospital and pharmacy
  5. is noise an issue, airport nearby, etc.
  6. are there schools close by, might have loud children close by
  7. what is the walk-ability of the immediate area

 

good investment

Is It A Good Investement?

Many seniors (or those over 55 years old) simply decide to buy a home on condo in a 55 and over community based on lifestyle, etc.

But you also want to think about the longterm investment and financial situation of owning a property in a 55 + community.

Is it better to rent a home for now or should you buy?

 

Rules and Regulations In 55 and Over Community

Any community or HOA living situation will have rules and regulations for those who rent or buy property there.

 

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staging a condo

11 Steps To Make Condo Buying Process Easier

Top 11 Things

  1. Choose to buy
  2. Hire a real estate agent
  3. Secure financing
  4. Find a condo
  5. Know What the HOA Fees Are
  6. Review The HOA Rules
  7. Research Managment and HOA
  8. Make an offer
  9. Perform due diligence
  10. Close on the condo
  11. Protect your investment

 

Here’s the deal:

Buying a condo in Orange County is a big decision, time consuming and very expensive so you need to be careful.

We have put together an easy check list to follow to help buyers with every step of the way.

Don’t ever rush into buying a condo (no matter what) and always do your own homework to make sure you are comfortable.

The steps and tips outlined below offer some great insights into the reality of buying a condo in todays world.

Put The OC Dream To Work For You:
Getting help from a Local agent makes all the difference.
We are local and care about our clients.
Call us Today or fill in our contact form.

 

choose to buy

Choose to Buy A Condo

There are many reasons why people decide to buy a condo or a house in OC –

and building wealth is one of those reasons.

Over the long run (in most cities) owning real estate can be a great investment and offer financial security as you get older.

Building equity and the tax benefits (writing off the mortgage interest) are the big financial benefits you’ll get from buying a condo in Orange County.

Owning Gives You Freedom:
Contact the OC Dream if you need help.

Of course the other popular reason people decide to buy a condo is to have a place to live where you can do what you want.

When you rent a condo obviously you can’t paint, or remodel, or knock down walls, but once you own it’s then up to you.

So base your decision on Logic and Facts, not just fears

  1. If you are paying monthly rent then you might be able to afford the monthly mortgage payment
  2. If you plan to live in the condo for a while then it will be a good purchase in the end, timing is everything so be patient
  3. You don’t have to have 20% down payment, there are many options available for condominium buyers
  4. You don’t have to have perfect credit score, but plan ahead and improve your credit rating before you apply for a mortgage
  5. Everybody has to start somewhere, so buy what you can afford and move up later on
  6. Buying a condo isn’t as scary as it seems, hire a good agent and reduce your stress

 

hire a real estate agent

Hire a Real Estate Agent

A normal real estate deal can involve over ten people by the time you are done.

Realtors, home inspectors, escrow company, mortgage broker, insurance agents will all be necessary to help you complete your condo purchase.

This is why it’s super important to find and hire a good local real estate agent in Orange County that you can trust and count on.

A condo purchase is stressful, but when you find a good buyers agent the whole buying process can be made much easier.

What’s the bottom line:

Your OC agent will do many things for you, but below are the key things you’ll need them to do.

  1. Truly understand your wants and needs
  2. Educates you about local Orange County real estate market
  3. Does research so you only tour properties you might actually want
  4. Negotiates at a high level to save you money
  5. Double checks all the paperwork and deadlines
  1. Alerts you immediately to any problems and solves them ASAP

 

secure mortgage on condo

Secure Financing / Pick a Mortgage

Many people think of buying a condo in Orange County as exciting, overwhelming, and expensive, and it’s all three of those!

For most people taking out a mortgage that is $450,000 to buy a condo is scary and confusing.

Typically people choose a mortgage that offers a set monthly payment for 30 years (or 15 years).

Many first time homebuyers in Orange County start out very nervous and unsure of the process, even previous home owners can be scared.

Although the financing process is complex and frightening, it becomes easier to digest when your agent or mortgage broker explains it.

Plan ahead for Financing:
Getting the right 15 or 30 year loan is Crucial.
Be sure to get your credit in good shape.
Call us Today or fill in our contact form.

We have simplified the process below into 6 steps that break down the experience of securing financing for you OC condo.

Simple 6 Steps To Secure Condo Financing

  1. Find and choose a mortgage broker
  2. Submit a loan application and get pre approved
  3. Decide what type of loan you want, how many years, down payment etc.
  4. Once you have an accepted purchase contract you’ll submit it to your lender
  5. Get an appraisal on the property and title commitment
  6. Finally you’ll obtain funding at closing

 

search for a condo to buy

Search For The Condo You Want To Buy

Some people want to buy a condo in Orange County and so they’ll start driving all over town looking at neighborhoods that they like.

This way might work for some people, but the younger buyers (parents, even unmarried couples) now prefer to search for options online.

Using a website like orangecountydream.com allows a potential condo buyer to compare 100’s of viable listings without leaving their house.

It’s easier if you look in a small area, like buying a condo in Huntington Beach CA.

Search 24 hours a Day:
You can search for homes and talk to your agent 24/7 on your phone.

Basically we all now carry a computer (cell phone) in our pocket, and you can search for a condo to buy from your couch, Starbucks, etc.

The most important thing is to decide what are “must haves” and “how many sq ft you need“, then you can actually narrow down neighborhoods, and options.

If you need options for an eco friendly unit or 55 and over communities we can help with that also.

Below we have put together 7 main questions to ask yourself before and during your serach for a condo you want to buy.

 

You Might Be Wondering:

  1. How many sq ft do I really need
  2. What is my actual budget I can afford per month
  3. Where do I want to live, near freeways or beach, etc.
  4. Do I want new construction or an older condo
  5. Are you open to buying a condo that needs updating
  6. What amenities and features are must haves – pool, garage, etc.
  7. Do you have kids, is top concern safety like gated entrance, etc.

 

hoa fees on condos

Know What The HOA Fees Are

Be sure to look into what the HOA dues are every month and what the fees cover – landscape, pool, etc.

The last thing you want is to not be fully aware of the fees, or misunderstand where your money goes every month.

Each HOA is unique so it’s best to ask a lot of questions to make sure you get answers.

Review The HOA Rules

The HOA rules can be strict and annoying, so plan ahead.

Some HOA’s are very fair and flexible, while other associations are very strict and prison like.

Once you buy a condo in a community you are then stuck with whatever the HOA rules are, so don’t assume anything.

If possible even knock on a few neighbors doors to ask them about the HOA and how they like living there.

 

hoa research

 

Research The HOA and Management

Always research who is going to be in charge of the community and making the rules.

Typically it’s pretty easy nowadays to find out anything you want online – thanks google.

Some HOA’s are Trouble:
Ask neighbors and Do Your Research.

I had a friend who bought a condo in HB, and 12 months later they raised the monthly fees to pay for a new roof.

But the problem was the management had wasted money in the prior years which caused the new residents to eat the difference.

 

hire an agent

Now It’s Time To Make an Offer

After you’ve searched high and low, and driven all over town with your Orange County real estate agent, and finally picked a condo you like,

then it’s time to write up an official offer for your agent to present to the sellers agent.

Although making an offer is a simple process, you must use some common sense before submitting the offer.

3 main components for any offer are –

  1. price
  2. terms
  3. and contingencies

The price you decide to offer for the condo must be realistic and truly reflect the market value of the condo you are looking to purchase (and your agent will help with this).

Here’s the deal:

In other words offering 10% below list price might be tolerable, but coming in 25% below list price is just silly and insulting to the seller.

The terms are made up of factors (move in date, close of escrow, etc.) that will be written up in the offer.

The contingency clause gives parties the right to back out of the contract under certain circumstances that should be negotiated between the buyer and seller.

 

What You Need To Know:
Educate yourself about the process.

Terms will fall under these basic categories:

  1. Schedule – a timeline of events that must happen before closing on the condo
  2. Conveyances – list of items that stay with the house after the sellers leave the property
  3. Commission – the real estate fees paid out to the sellers agent and the buyers agent (typically 3% to each, but may vary).
  4. Condo Warranty – this will cover repairs or fixes necessary to appliances and major systems like AC, you can ask seller to pay for this.
  5. Closing costs – it is standard for the condo buyers to pay their closing costs, but you can ask the seller to roll the costs into the loan – needs to be in the contract
  6. Earnest $ – this will protect the seller from the possibility that buyer unexpectedly pulls out of the deal, shows how serious buyer really is

 

home inspection

Perform Due Diligence

When you buy a condominium in Orange County CA, you can’t just return it or get your money back if you are unhappy.

This is the reason that condo owner’s insurance and property inspections are vital to the condo buying process.

Again this is the kind of thing your real estate agent will help you with.

A condo owner’s insurance policy can protect you in two ways:

  1. offers liability in case somebody is injured while on your property
  2. helps against loss or damage to the condo property itself
Get An Inspection:
Don’t do it yourself or just hope it will be OK

Having the condo professionally inspected will expose any real issues that you as the buyer want to know about and might even change your mind to buy.

Because once you start signing papers and moving forward you can’t just change your mind like you would buying groceries – LOL.

The real value of the inspection is to make the buyer aware and sure of the purchase.

– Major concern should be things like structural damage or a bad roof, etc.

– Buyers shouldn’t freak out over little things like a broken window, or paint that is chipping

– If the inspection shows major issues then hire a specialist and worst case is that the problems are large and you walk away from buying the condo

 

 closing on your condo

Closing On Your Condo

Finally after all your research, touring properties, and getting your offer accepted, the final stage of “closing is next”.

The final stage of the buying process will be your lender confirming the value and legal status of the condo, and your credit-worthiness.

This will involve a survey, an appraisal, title search (lots of paperwork) and a final check on your finances (job, etc.) and your credit score.

Assuming you hired a good real estate agent, he or she will keep you up to date on how each step is progressing.

Stay Focused:
Be sure to pay attention to the list below

Main point though is at this stage your work is basically done.

Just take care of a few pre-closing duties:

  1. Don’t let your finances change (don’t buy a car, etc.)
  2. Communicate with your agent several times a week as needed
  3. Return all paperwork and calls immediately
  4. Days before closing make sure with your agent that all paperwork is in place
  5. Now secure certified funds for closing
  6. Do your final walk through of the condo

The exciting part now on closing day with your agent and settlement agents you’ll sign documents to –

  1. Complete and finalize the mortgage
  2. Funds transferred to pay the seller
  3. Pay your closing costs
  4. Transfer title from seller to you and legally record transaction as public record

 

protect

Protect Your Condo Investment

All during the condo buying process you will spend a lot of time with your real estate agent, mortage broker, etc.

Buying a condo is a big investment and you need to protect your purchase, so plan ahead.

After you close on your condo you can still ask you agent for help when:

  1. If your condo needs repairs ask agent for referrals to contractors
  2. When it comes times to file your tax return as a homeowner
  3. If you have friends or family looking to buy a condo
  4. Eventually if you want to sell your condo

In addition to all of this be sure to properly maintain your condo inside and out.

Yes the HOA will do most of the needed repairs to exterior, but you need to be responsible yourself.

Keep an eye out for water damage, leads, wear and tear, plumbing issues, etc.

 

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