Michael Wolff's Real Estate & Finance Blog

Checking the Hot Sheet today shows me that there were 20 NEW Residential Property Listings* in the San Fernando Valley. put on the market ranging from a $174,950 Condo in Tarzana to a $1,399,000 Single Family home in Sherman Oaks.

Additionally, there were 18 Closed Sales*. Closed sales range from a Co-op in Studio City sold at $280,000 to a Single Family house in Encino that closed at $1.2m.

These numbers are higher than they were a few days ago!

Southern California has been a market to watch. Home prices swelled earlier in the decade only to drop as much as 20-30%+ over the last 9 months alone. With the flood of foreclosures and short-sales prices may continue to decline which really hurts those in the market to sell. However, it is a perfect time for First Time Home Buyers and Investors to pick up properties at huge discounts.

If you find this information useful, please let me know.  Local Realtors all have access to this information but without being a member or an affiliate member of the local Association you may not get all of the details.

*information from MLS and includes only the following cities: Van Nuys, Encino, Sherman Oaks, Studio City, Woodland Hills & Tarzana

Studies indicate that over 80% of today's home buyers visit the Internet long before seeking the professional assistance of a REALTOR®. This means that, thanks to popular realty-themed websites that compete for your business, your clients are already armed with more information than ever before.

That's why today's savviest real estate agents must change their perspective and fight back. And the best way to do this is to visit and become familiar with these kinds of sites and the features they offer. This data will not only prepare you to answer any questions your clients might have, it will allow you to provide a more complete service that your clients will want to recommend to all of their friends and family members.

Property Listings & More

1) Redfin.com: In addition to listings, this site offers information such as how long a home has been for sale, its last sales price, and its current value. It also provides virtual tours to listed homes.

2) Trulia.com: Like Zillow.com, which offers satellite views and the estimated values of each home, Trulia's “heat maps” show how hot or cold an area is based on prices, sales, and popularity among its users. Trulia.com also has free tools real estate agents can easily add to their own websites to increase functionality and traffic.

3) Maps.Google.com and Maps.Live.com: For bird's-eye view, even 360 degrees in some cases, these amazing map sites offer a virtual perspective of available homes that's truly hard to beat.

4) Walkscore.com: interesting site that rates any address based on the walking distance of its nearby stores, restaurants, schools, parks, coffee shops etc.

5) SchoolMatters.com: A Standard & Poor's company, this site offers parents (and potential homebuyers) an objective rating of public schools and public school districts by region, including test scores and demographics. GreatSchools.net offers similar info and ratings on private schools based on region.

Government Websites

Government loan programs offer great opportunities for many consumers in many regions across the country, especially first-time buyers and veterans. The following websites are likely one of the first of many sites potential homebuyers visit during this process:

1) HUD.Gov is the official website for the U.S. Department of Housing and Urban Development (H.U.D.) This site lists HUD homes and provides information for home buyers, including financing options and home buying programs available through the Federal Housing Administration (FHA).

2) Homeloans.va.gov: This site houses information about government home loan programs specifically for veterans.

Give me a call if you think of any more sites I should add to my list. I look forward to developing ways that we can grow our business together.

Checking the Hot Sheet today shows me that there were 15 NEW Residential Property Listings* put on the marketranging from a $219,900 Condo in Woodland Hills to a $2.3m Single Family home in Studio City.

Additionally, there were 11 Closed Sales* as of this post (3:45pm).  Closed sales range from a condo in Encino sold at $205,000 to a Single Family house in Sherman Oaks that sold for $3.8m.

Southern California has been a market to watch.  Home prices swelled earlier in the decade only to drop as much as 20-30%+ over the last 9 months alone.  With the flood of foreclosures and short-sales prices may continue to decline which really hurts those in the market to sell. However, it is a perfect time for First Time Home Buyers and Investors to pick up properties at huge discounts.

*information from MLS and includes the following cities: Van Nuys, Encino, Sherman Oaks, Studio City, Woodland Hills & Tarzana

Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.

If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require the borrower to provide less than 3 percent of the loan amount as down payment. FHA lenders rule that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.

Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that “home” is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.

A Qualified Mortgage Consultant Can Outline Your Options.

If you want more information, please do not hesitate to drop me a line!

Michael Wolff

michael@WolffFinancial.com

(818) 776-9272

(888) 989-6533

Today I drove around to some open houses to meet some local Realtors and to see how their business was going, what they're doing to cope with the changes and in general get a feel for their attitudes.  Although there was some "Doom and Gloom" speak they we're slightly optimistic and had a 'Hang in there!' attitude.

I stepped back as potential buyers came through the properties and what really struck me was the following:

1. Realtors really made no effort to get to know the future clients.

They didn't actively ask for their names, ask them to sign the registry, or even ask them what they were looking for!  I asked not even ask them to fill out the registry, capture their email addresses or anything! I was told: "I used to do that, but they usually dont want to, or they already have someone working with them."  I said: "If they are already working with someone, why wasn't their agent with them??".

2. They didnt pick up on verbal cues from the future clients.

One young couple with a 14 month old child asked "Is the seller willing to help with closing costs?".  Agent replied "Yes, probably around $10,000".  That was the END of the conversation!  Why not ask about financing? Are they approved? How far along the process were they? Etc.  Client left probably never to be heard from again.

Next was a Father/Son pair.  The son commented to the Father "This property is over 7,000 square feet!".  The Agent thought nothing of it.  Maybe ask the future client "Have you thought about expanding this home? What about the size of this lot do you like"?  Anything to start a conversation!

Another observation I made was the complete lack of financial information available to future clients! Also, complete lack of any take-away material branded with the Agent's personal or company info.

In this (and really every) market, we have to make every effort to stand out and to connect if we want to succeed.  I have many ideas and tons of materials on this.  Please dont hesitate contact me!