This limited time offer is your opportunity to purchase a home and save on each monthly payment for the life of the loan. Read more below . . .

Exclusively offered by First Team Real Estate, this special program provides buyers of owner-occupied residential real estate with a substantial cash savings benefit simply for utilizing an agent of First Team along with First Team’s bundle of essential settlement services (escrow, title, and mortgage lending) in their purchase transaction.

Q. Why is First Team offering this exclusive Program?

A. Recently, Harris Interactive in partnership with the National Association of REALTORS® conducted a public opinion study of consumer preferences when it comes to real estate services. In the study, 96% of the consumers surveyed felt
that receiving all of the real estate services through one provider (known as “one-stop shopping”) would make purchasing a home “more efficient and manageable.” First Team has determined that offering our convenient one-stop shop of essential bundled services, which is the overwhelming preference of the consumer, also provides economies of scale that could enable First Team and certain of its affiliates to join forces in offering a financial reward back to these “one-stop shop” consumers in the form of our exclusive First Team Housing Stimulus Package – a win-win for everyone.

Q. Which Buyers are eligible to apply for the Program?

A. Any buyers of residential real estate who are purchasing as owner-occupants, meaning that the buyers intend to occupy the property as their residence after close of escrow.

Q. What are the requirements to receive the Program benefits?

A. The requirements to receive the Program benefits are relatively simple and straight forward:

1. Buyer(s) must use an agent of First Team to represent them throughout the purchase transaction and must execute a Buyer Representation Agreement, along with the Program Addendum.

2. Buyer(s) may be any purchasers of residential real estate as owner-occupants.

3. Buyer(s) must utilize all three essential bundled Preferred Provider Services affiliated with First Team: Hallmark/Coast Cities Escrow, Western Resources Title, and Bankers Funding (affiliated with Wells Fargo Home Mortgage). (Loans
are subject to GSE Conforming Loan Limit for the respective county of the transaction).

4. Buyer(s) must have an accepted offer on the transaction after August 21, 2010, and no later than October 31, 2010, and close escrow and record title by December 30, 2010.

Q. How are the Program benefits paid?

A. The Program benefits are paid in the form of mortgage payment reductions generated by a one-quarter percent (0.25%) buydown in the mortgage interest rate as published daily by Wells Fargo Home Mortgage. This rate reduction is provided at no additional cost to the Buyer. Other normal loan costs apply, including the normal loan origination fee not to exceed one percent (1.0%).

Q. What’s the size of The First Team Housing Stimulus Package benefit?

A. The total amount of the Program benefit is dependent on the dollar amount of the mortgage taken by the Buyer to complete the transaction and the period of time the mortgage is held. While specific amounts can be calculated for the actual loan amount, examples of the payment reduction, and therefore the cash savings benefit, are estimated in the following page based on the loan amount and the period of time the loan is held by the Buyer:

Q. Is there a limit to the size of the mortgage loan?

A. Yes. The Program is limited to the current GSE Conforming Loan Limits as specified by Federal legislation. The loan limits are defined by the county in which the property is located and are shown in the table above.

Q. Is there a limit to the purchase price?

A. No. While the loan size is limited as shown above, there is no upper limit on the amount of the purchase price.

Q. Can I the Buyer buydown the interest rate even more?

A. Yes. If you wish to lower your interest rate and payments even more, you are free to do so. Consult your First Team agent and Bankers Funding loan officer for further details and costs.

Q. Do the reduced mortgage rate and reduced payments mean I can qualify for
a higher loan amount?

A. Probably so. In most cases reducing the monthly payment amount means that you will be able to qualify for a higher loan amount if you wish, meaning that you could buy more home for the same income. Contact your First Team agent
and Bankers Funding loan officer for more specific details.

Q. What if I as the Buyer am unable to meet all of the Program requirements?

A. While First Team wants every Buyer to take advantage of the excellent benefits of the Program, the benefits can only be paid if all of the Program requirements are met. As explained above, the economies of scale that allow us to offer the program benefits are dependent on the use of all of the essential bundled preferred provider services in the transaction.

Q. How do I get started with the Program?

A. That’s the easiest part. Contact your First Team agent, and we’ll take it from there. We’ll provide our complete services from identifying properties for your consideration to handing you the keys to your new home after closing.

The home purchase must be for a principle residence and it can include a boat, motor home or traditional house, condo or townhome up to an $800,000 limit. There are income limits to the new benefits extention. They are $125,000/yr for a single person and $225,000 for a couple.  A purchase by a dependent is not allowed. See your tax advisor for more details.

The good news is that more people can get tax relief when they purchase their next home through April 30, 2010 or have a binding contract to purchase on April 30th and close by July 1, 2010.

The other good news for home buyers is the historically low mortgage interest rate and the reduced market values for homes. This is a combination that probably won’t be seen again in our lifetimes. Contact your realtor to find the best buying opportunites in your area.

I have lovely coastal homes in all price ranges from Orange County to Long Beach, CA. I will find the right one for you. I’m only a click away!

Many of these first-timers bought “starter” homes that were bank owned or in the foreclosure process or distressed “fixers” that needed TLC.  The investor-buyer has also benefitted with the significantly reduced values (down 25% to 40%), often buying distressed homes in “bulk”, fixing them and selling them for a profit.  The inventory of “low-end” properties in California is down and the demand is up.

All of this activity has put a floor (of sorts) in the Cailifornia market so that the CAR is now forecasting a slight increase in values for 2010.  All real esate is local and markets vary.  So, it’s important to find a knowledgeable realtor to assess your niche market value.

The bottom line for California going forward is an opportunity for the “move-up” buyer = someone who currently owns their home and wants to move into the next bigger, better, newer home while the “getting” is good.  Mortgage rates are historically low for everyone.  But they won’t stay low forever. Property values are low, but they are destined to go up again. First-time buyers are buying. That’s why NOW makes sense for the move-up seller.

Some economists predict an increase in interest rates as early as the second quarter of 2010.  Home values may or may not go down a little more in the coming months.  The banks are not dumping their “shadow inventory” of foreclosed homes, but releasing them slowly to maintain values or selling them in bulk to investors.  The window of opportunity will be open only so long.  Anyone who can buy a property and hold it for 2 to 3 years will be glad they bought in 2009/2010.

To qualify you cannot have owned a house/condo, etc during the past 3 years. There are income caps and credit hurdles to pass, but most first time home buyers can benefit from this government largess. 

It is important to find your next home now and get into escrow ASAP.  Most escrows will take 45 to 60 days to close.  So, don’t delay!  Get pre-approved for a loan with a direct lender and make the all-important appointment with your realtor.  

There’s talk of extending the program, but noone is certain. The government coffers are hard-pressed paying for so many bailouts and stimulus plans.  So, if you qualify for the $8,000.00 credit, get it while you can.  

There is still time to find good buying opportunities. The $8,000.00 first-time home buyer’s credit is still in effect through November 30th. There are still bank owned homes and short sales available. However, the room to negotiate a lower price is probably gone.

Here’s more information for the fence sitters to consider. Read the highligts of the NYT’s article. The information is from national survey’s such as the S&P/Case-Schiller Price Index, the NAR and from CAR’s chief economist, Leslie Appleton-Young.  Contact a Realtor in your local market to learn what is happening there.

The New York Times

3-year descent in home prices appears to be at end

According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end.  Eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March, according to Standard and Poor’s/Case-Shiller Index.  For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
 

MAKING SENSE OF THE STORY FOR CONSUMERS

·      Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively.

·      Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing.  June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979.  The year-to-year decline in June also was the smallest in the past 16 months.

·      The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April.  It was the first month-over-month increase in the index in 34 months.  “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s.

·       One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December.  The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers.

·      Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales.  “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.

Here are some highlights from that article and important things to know before becoming a first time home buyer:

       Buying a home is a very serious event no matter how many times you have done it. You may be signing a contract binding you for the next 30 years. Many FTHBs make a few similar mistakes over and over again. They ask too few questions of their lender and end up missing out on the best deal. They do not act quickly enough and let someone else buy the home. They do not find the right agent for them, one who is willing to help throughout the home buying experience. When they have found their prospective home they do not do enough to make their offer look appealing to the seller. And, they do not think in the longer term about the resale of the home before they buy. To make sure you are making the right moves here are a couple of tips to prevent any mistakes or regrets in your home buying transaction.

• Be picky, but don’t be unrealistic. There is no perfect home.
• Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
• Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs
• Don’t wait to get a loan. Talk to a lender and get pre-qualified for a mortgage before you start looking.
• Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
• Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
• Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.
• Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
• Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

The best way to insure that you satisfy the above quoted advice is to work with an experienced Realtor who will jump these hurdles with you. A first time buyer cannot possibly know what the requirements are and how to satisfy them; where the pitfalls are and how to avoid them.  Would you go to court without a lawyer?  Would you avoid seeing a dentist for a painful tooth?  Then it is just as important to seek real estate help from an experienced realtor.  

Remember that a home is a place to live, grow and thrive. It is not just an investment.

Equity sellers who have maintained and up-graded their home may benefit from this buying frenzy, if they are willing to price their home competitively. Special marketing is essential with strong internet presence and the creative techniques of the “New Rules” of real estate. I know how to utilize the “New Rules” and I can provide you with the internet presence that will get your home widely seen. Learn how you can benefit from this specialized knowledge.

If you are having difficulty making your current mortgage payments, contact your lender before you fall behind in your payments. Ask if you qualify for a loan modification from your lender. If you do not, then you have options. Call me to find out about your options. I can help you steer a path in this sea of confusion and shine some light in the right direction. I can be reached at 714-932-5529.   

The question is “Will it last?” Foretelling the future is always risky. So many factors influence the market. The level of unemployment, the availability of credit and the ever-nebulous consumer confidence impact sales to varying degrees. On a larger scale is the balance (or imbalance) of supply vs demand which can tip the scales toward a buyer’s or a seller’s market, driving values up and down.

Right now the inventory of homes on the market is dwindling, shifting the balance toward sellers.  When more properties are brought “on market”, the balance will shift toward buyers unless the homes are mostly distressed properties. A bank-owned or short sale listing will almost always be in high demand and generate multiple offers which drives the price up. Therefore, a large inventory of distressed sales represent a seller’s market.

The public’s perception is that home sales are mostly in the “distressed” end of the residential market. Advertised “Home Auctions” and “bank-owned” properties plus media stories of displaced families due to foreclosure dominate the realty news.  In some communities this is true, where 90% of recent sales are distressed properties.  In other communities the closed sales are dominated by “equity” sales from sellers who are not in foreclosure.  All real estate is local and it pays to know your market.

A first-time buyer and a home seller would be best served by aligning themselves with a professional who knows that local market.  Both parties will benefit from the knowledge of a local expert who actively works in the marketplace daily.  A local Realtor will know the accurate value range of a home and facilitate the disclosure of the home’s condition and the title clearance that is critical in any transaction. A knowledgeable third party can negotiate in an unemotional way to create a win-win for both sides that will appraise and close escrow! An internet entity facilitating a home sale when the on-line contact has no local knowledge, leaves one or both sides open to liability. Buyer and seller beware.

Therefore, take the guess work out of your real estate transaction. Work with an experienced realtor!

Investors with all cash or substantial cash downpayments are competing with firsttime home buyers who want their piece of the American dream. It is so very important for firsttime buyers to be pre-approved for a loan and have it in writing from a “direct lender”. A direct lender backs the mortgage from its assets. A major bank or a credit union is an example of a direct lender. There are others who also qualify as direct lenders. Some mortgage companies are direct lenders. It’s important to know who you are dealing with, because many bank owned listings will sell to a buyer who is financing the purchase with a mortgage only if the mortgage is from a direct lender.

The mortgage interest rate is still historically LOW – below 5% for a fixed rate conforming loan. With house values as low as they are it makes sense to be buying a home at this time. Remember that you are buying a home first, not an investment. As we have seen all too clearly, speculating that house prices will always go up can be a big mistake. But if you have been waiting to take advantage of low interest rates and low home values, your time is here!

You may have to bid above list price to get the house you want. As with any auction you may lose to someone who offers more. Don’t be discouraged. Find an experienced realtor to help you find a house and negotiate for it.  Or, visit the auctions and try your luck there. But it is “buyer beware” out there because you purchase a property “as is” at an auction. There can be tax and reconveyance issues to contend with as well as repairs that may cost you more than you bargained for.

As a member of a special group called ROHRS, I have information about bank owned properties and how to “package” an offer for the bank to consider.  Many offers on bank owned homes never get seen by the bank, if they are not packaged properly. You must work with an experienced realtor who will get your offer seen by the bank’s representative. Once your offer is accepted you will have a limited time to have the home inspected and your loan funded. It’s a balancing act that requires everything to happen correctly. Let me know if I can help you.

Admission is FREE!

As seen in the LA Times Custom Publishing insert on 4/16, the Home Buyer’s Fair will educate home buyers about assistance programs, opportunities for first-time home buyers and how to successfully navigate today’s real estate market.  The free event will feature more than 50 “how to” sessions about the home-buying process as well as 70 exhibit booths offering information and guidance to home buyers. Several sessions will also be offered in Spanish.

You will find seminars on monitoring your credit score, finding and applying for a mortgage loan, assistance programs for first-time home buyers and how to choose and successfully work with a REALTOR.  Popular sessions such as “How to Find and Buy Foreclosures, Short Sales and REO’s” will be repeated so you can make the most of your visit.

Free movie tickets will be distributed by C.A.R. for the first 200 attendees each day, immediately following the welcome and opening remarks. One ticket per person.

For information about the event visit www.homebuyersfair.com