Buyers • August 23, 2023

Timeless Wisdom: Initiate the Home-Buying Journey TODAY, Even If It’s Just a Consideration

by Kirsten "Kris" Jardino

For enthusiasts of HGTV, the process of buying a house might seem deceptively swift. The show portrays a few house visits over a couple of days, followed by a casual outing to deliberate over choices. Before the real estate agent even joins, decisions are made, and the dream home is yours in the blink of an eye.

However, reality diverges significantly from the edited TV version. While nobody assumes purchasing a house takes just half an hour, the actual duration can be surprising to many. If you’re contemplating buying a house, initiating the process now could prove wise, as it may take more time than anticipated.

Closing Timelines: The Challenge of Estimation Estimating the time required to close on a house proves challenging. According to a Rocket Mortgage article, closing usually takes 30-45 days, yet the subsequent sentence suggests an average of 50 days. This uncertainty exemplifies the difficulty in providing a definitive answer.

Most agents might agree with this estimation. Thirty days is swift, 45 days is more realistic, and even 60 days isn’t unusual. Cash deals that bypass mortgage processes might close faster, but other factors can still influence timelines. However, this refers solely to the closing process. The entire house buying process could require several additional months.

Factors Influencing Duration Determining exact days for each phase is futile due to regional variations and individual circumstances. Nonetheless, certain factors can potentially extend the house buying timeline:

House Selection: Finding a house aligned with personal taste varies. Some decide within a day, while others take months of searching.
Missed Opportunities: Delayed offers or unsuccessful negotiations can cause missed opportunities.
Owner Considerations: A seller’s circumstances may demand a longer closing period.
Inspection and Repairs: Scheduling inspections and addressing issues may extend the process.
Mortgage Underwriting: Underwriters’ pace can impact the timeline even after swift document submission.
Appraisal and Title Work: Appraisal results and title searches might necessitate additional time.
Closing Coordination: Coordinating closing with multiple parties can lead to scheduling challenges.
Final Walk-Through Issues: Identifying issues before closing can postpone the process.

A Cushioned Timeline for a Smooth Experience Even with seamless progression, planning to start the buying process about three months before moving is prudent. The early stages involve identifying suitable homes and understanding market dynamics. The more time you allocate, the smoother your journey will likely be.

To pinpoint the right starting time, collaborate with a local real estate agent. They’ll factor in market conditions, available properties, and your circumstances to offer a tailored timeline. If buying a house is on your horizon, connecting with an agent is your first step towards a successful purchase.

Sellers • August 22, 2023

“Unlocking Home Equity: 3 Essential Insights You Must Know Discover the Impact of Home Equity on Your Sale Proceeds

by Kirsten "Kris" Jardino

Understanding home equity is paramount as it directly shapes the cash you’ll pocket upon selling your property. But let’s delve deeper: What exactly constitutes home equity, and why is it a crucial consideration before listing your home for sale?

Unveiling Home Equity: Unveil the Essence

Home equity, defined as the variance between your home’s market value and your outstanding mortgage balance, plays a pivotal role. Picture this: Upon selling your home, it signifies the funds at your disposal after mortgage clearance.

Significance of Home Equity Building: Why It Matters

Home equity isn’t just a financial term—it’s a cornerstone. It dictates your post-sale earnings post-mortgage settlement and associated expenses. Beyond this, it morphs into an invaluable asset—a financial resource for investments or even as a down payment for a second property. Moreover, for many, it constitutes a significant slice of overall net worth.

Strategic Equity Accumulation: The Ideal Approach

Navigating the ideal quantum of equity isn’t a one-size-fits-all equation. However, aiming for a minimum of 20 percent equity prior to selling is a prudent strategy. As your equity shifts in response to market dynamics, loan refinancing, cash extraction from equity, or the initiation of a home equity line of credit, a consistent trend emerges: The longer you reside in your dwelling, the more your equity flourishes. This trajectory inevitably enhances your potential profit upon eventual divestment.

By grasping these core tenets, you pave the way for astute management and utilization of home equity, ultimately driving enhanced real estate outcomes.”

Buyers • August 16, 2023

Top Fears Buyers Have about Mortgages

by Kirsten "Kris" Jardino

Embarking on the journey of purchasing a home sparks both excitement and trepidation. For a segment of potential buyers, the most daunting aspect of this venture revolves around securing a mortgage.

However, what precisely triggers these apprehensions? A recent report from realtor.com has highlighted several prevalent mortgage-related concerns among homebuyers, which encompass:

Insufficient Funds for Down Payment: A prevailing misconception among homebuyers is that a 20 percent down payment is a prerequisite for obtaining a mortgage. This misconception leads to anxiety about their savings falling short of meeting loan approval criteria. A range of mortgage choices exists that necessitate minimal or even zero upfront funds. While private mortgage insurance (PMI) may be applicable, the absence of a 20 percent down payment does not generally impede mortgage eligibility.
Inadequate Credit Score: Apprehensions regarding credit prerequisites, specifically not fulfilling them, constitute another significant concern among mortgage seekers. While a superior credit score (ranging from 760 to 850) enhances qualification for the most favorable interest rates, possessing a reasonable credit score (650 or higher) is typically sufficient for eligibility for a conventional loan. Furthermore, options like FHA loans accommodate more lenient credit criteria, with a credit score requirement of only 580.
Meeting Monthly Mortgage Obligations: Anxiety concerning mortgages persists beyond loan approval, as numerous homebuyers fear their ability to manage monthly mortgage payments. Should such concerns arise, bolstering your savings is recommended — ideally, with reserves equivalent to half a year’s living expenses. By doing so, you can confidently meet mortgage payments, even during periods of financial challenges.

Buyers • August 11, 2023

Don’t Let These “What If’s” Stop You From Buying a Home

by Kirsten "Kris" Jardino

Investing in a home is a substantial financial commitment, prompting many prospective buyers to become entangled in apprehensions about potential pitfalls. These concerns often hinder them from realizing their aspiration of purchasing their ideal home.

However, it’s essential to recognize that the majority of these apprehensions have reasonable explanations and need not thwart your homeownership aspirations.

So, what are the prevalent worries deterring individuals from making purchases in the present real estate market? A recent publication on realtor.com has elucidated several prevailing “what if” queries that arise for buyers navigating the home acquisition process. These encompass:

What if I purchase a home now and housing prices decline? Given the perception of elevated home prices in today’s market, a predominant fear among potential buyers is procuring a home, only to witness a subsequent drop in prices. Nonetheless, while market fluctuations occur, historical trends show an upward price trajectory over the long run. Your investment should remain sound if you refrain from selling your home when its value is beneath your initial purchase price.
What if I acquire a property now and mortgage rates plummet? In tandem with escalated home prices, prevailing mortgage rates are also elevated, prompting apprehension among buyers that they might become ensnared in a high-rate mortgage, only to see rates decrease post-purchase. By the way, the prospect of refinancing could fix this problem if mortgage rates decline in the future, so that you can reduce your interest rate.
What if I buy a residence, but subsequently encounter job loss or financial setbacks? Another prevailing worry is the potential scenario where a homeowner purchases a property and then confronts financial difficulties due to job loss or unforeseen expenses. Ideally, maintaining a financial cushion through savings is recommended; however, engaging with your lender is advised in situations without such reserves. Transparency and open communication about your financial situation can lead to collaborative solutions, as lenders prefer finding alternatives over foreclosure.

In summary, addressing these common “what if” fears in the home buying journey is pivotal. Prospective buyers can navigate these uncertainties by acknowledging logical explanations and fostering open dialogues with lenders while progressing towards their homeownership aspirations.

Sellers • August 2, 2023

Turning a Lowball Offer into a Winning Deal: Strategies for Sellers

by Kirsten "Kris" Jardino

When it comes to selling your home, receiving an offer is an exciting moment, but it can quickly lose its charm if the offer is far below your expectations. However, a lowball offer doesn’t have to be a deal-breaker! With the right approach, you can potentially turn it into an offer you’d gladly accept, or even be excited about.

Firstly, remember not to take the lowball offer personally. Many sellers feel insulted, thinking the buyer is trying to take advantage of them. However, there could be various reasons behind a low offer, such as the buyer’s lack of knowledge about the market. Instead of getting offended, view it as a starting point for negotiations.

To transform the lowball offer into a more acceptable one, consider responding with a counteroffer. Be strategic in your approach and avoid undervaluing your property just because the initial offer was low. Offer a moderate discount, say $5,000 to $10,000, while providing an explanation for your pricing decision. You can support your counteroffer by presenting comps of similar homes nearby or showcasing your property’s top features. This helps the buyer understand the value you see in your home and realize if their initial offer was too low.

If you’re still unable to reach an agreement on the price, explore negotiating other terms to make the deal more appealing. For instance, you can request the buyer to waive certain contingencies, which may increase their confidence in closing the deal. Alternatively, if you’re juggling multiple mortgages due to already purchasing another property, you can propose an earlier settlement date. This way, you save money by eliminating the original mortgage payment sooner.

Remember, successful negotiations involve patience and open communication. Engage with the buyer constructively and professionally, focusing on finding common ground. With the right approach and a positive mindset, you might turn a seemingly disappointing offer into a winning deal for both parties.

Sellers • July 28, 2023

Preparing Your Home to Sell on a Budget: Smart Tips for Success!

by Kirsten "Kris" Jardino

Selling your home requires some dedicated effort, and the more you invest in getting it ready, the better your chances of a quick and profitable sale. However, we understand that not everyone has a huge budget to spare. Don’t worry, though; with some clever tricks and strategic planning, you can still get your home market-ready without breaking the bank.

Choose the Right Rooms to Paint: Painting is a cost-effective way to revitalize your home’s appearance. If your budget is limited, focus on rooms that will have the most impact, such as the living room, which is a central space for potential buyers. Additionally, bathrooms and the kitchen can benefit from a fresh coat of paint too, as they often have less wall space and more cabinets.
Jazz Up Your Wood Floors: Refinishing wood floors can be costly, but you can achieve impressive results even with a tight budget. Consider using a water-based polyurethane wood floor restorer, which adds a beautiful high-gloss finish and helps to conceal scratches. Your floors will look shiny and rejuvenated without the hefty price tag.
Get Professional Stager Insights at a Discount: Hiring a professional stager for the entire space might be beyond your budget, but that doesn’t mean you can’t benefit from their expertise. Inquire about their hourly rate, and then pay for a few hours of their time. During this period, seek their advice on how to stage the house effectively for a successful sale. Their valuable insights can make a significant difference in how your home is presented to potential buyers.
By following these budget-friendly tips, you can maximize your home’s appeal without overspending. Selling your home on a tight budget is absolutely doable, and with some creativity and resourcefulness, you’ll be on your way to a successful sale in no time.”

Buyers • July 28, 2023

Timeless Advice: Why It’s Crucial to Begin Your House Hunt NOW in Pasadena, California

by Kirsten "Kris" Jardino

If you’ve ever indulged in an HGTV show, you might believe that buying a house is a breeze, taking only a short while to find your dream home. However, the reality of the real estate process is far from the edited TV version. If you’re even contemplating buying a house, it’s essential to start the process right away, as it might take longer than you anticipate.

The Lengthy Journey to Closing:
According to a Rocket Mortgage article, the typical time to close on a house ranges from 30 to 45 days. However, the average time is closer to 50 days, showcasing the difficulty in pinpointing an exact timeframe. While 30 days may be possible for a swift closing, a safer bet is around 45 days. In some cases, the process may even extend to 60 days, which isn’t uncommon for many real estate agents to witness.

Factors Affecting the Timeline:
Numerous variables can impact how long it takes to buy a house, making it challenging to estimate specific timeframes. Here are some key factors to consider:

Finding the Right House: The duration of your search depends on personal preferences and market conditions. Some might find their ideal home quickly, while others may need months to explore various options.

Missing Out on Houses: Delayed decision-making or competition could lead to losing out on potential homes before securing one.

Seller’s Timeline: The seller’s circumstances, such as needing more time to move out, can affect the closing date.

Home Inspection Issues: Discovering problems during the inspection may require negotiation and additional time for repairs.

Mortgage Underwriting: Delays in the underwriting process might result in requests for more documentation.

Appraisal: If the appraisal comes back lower than expected, it can lead to negotiations or adjustments.

Title Work: Issues found during the title search could add time to resolve legal matters.

Closing Scheduling: Coordinating a convenient closing date with all parties involved may take time.

Final Walk-Through: Identifying issues during the final walk-through might delay the closing until they are addressed.

Start Early and Consult Your Real Estate Agent:
Given the uncertainties of the process, it’s advisable to begin your home buying journey at least three months before your intended move-in date. However, starting even earlier will be beneficial.

To gauge the optimal starting time for your unique situation, connect with a reputable real estate agent in your area. Their expertise will provide insights into current market conditions, available houses, and the potential duration of your house-hunting journey.

In conclusion, purchasing a house is a significant undertaking that demands time, patience, and careful consideration. Don’t underestimate the process; take proactive steps now to embark on your house hunt and make your dream home a reality in picturesque Pasadena, California.