2010 January Home Buying Seminar

984 views
918 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
984
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

2010 January Home Buying Seminar

  1. 1. Buy A HOME ON THE SAN FRANCISCO PENINSULA 2010<br />Aimee Snodgrass Klarich<br />Realtor ® <br />Alain Pinel Realtors<br />Burlingame, Ca <br />Business 650-931-2957<br />aklarich@apr.com<br />www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />San Mateo, Ca<br />Business 650-645-1775<br />eileenhoran@mortgagecalifornia.com<br />
  2. 2. Home Buying Seminar<br />Presentation Topics<br /><ul><li> How the Stimulus Plan benefits first time home buyers
  3. 3. Tax Credits available for home ownership
  4. 4. Why buy a home in 2010?
  5. 5. Steps for a successful home or condo purchase
  6. 6. Differences between owning a condo vs a single family home in San Mateo County
  7. 7. How to finance your home purchase?
  8. 8. State of the San Mateo County real estate market
  9. 9. 2010 Peninsula Real Estate Forecast</li></ul>Aimee Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  10. 10. WHY BUY A HOME IN 2010?<br /><ul><li> Stimulus Plan benefits local buyers by enabling them to qualify for specific loan programs with lower interest rates.
  11. 11. $8000 First Time Home Buyer tax credit on purchases through 6/30/10 for qualified buyers.
  12. 12. $6500 Tax Credit for current qualified homeowners
  13. 13. San Mateo County is a Buyer’s Market giving home buyers more negotiation power than we have seen in years.
  14. 14. Mortgage rates remain historically low but are projected to increase.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  15. 15. WHY BUY A HOME?<br /><ul><li>You build wealth as value appreciates
  16. 16. It can be a tax write-off
  17. 17. House expenses usually increase slower than renting
  18. 18. You have much more flexibility in how you use, decorate and make physical changes to your home
  19. 19. Pride of homeownership</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  20. 20. STIMULUS PLAN<br />The &quot;American Recovery and Reinvestment Act of 2009,&quot; was signed by President Obama on February 17th, 2009.<br />On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. San Mateo County, San Francisco County and numerous other counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, 2009 and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009. <br />On Nov 13th, 2009, congress extended this thru Dec. 31st, 2010. <br />This means lower interest rates for those getting a loan between the $729,750 and $625,500.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  21. 21. STIMULUS PLAN<br />The bill also increases the first-time home buyer credit from $7,500 to $8,000.<br />It also extended the expiration date for the credit from July 1, 2009 to Dec. 1, 2009. However, on November 3rd, 2009, it was extended until June 30th, 2010. <br />See Appendix for more details<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  22. 22. Other Tax Credits<br />Homeowners who currently do not qualify for aid under the federal housing-rescue plan still may qualify for tax credits on energy-efficient upgrades. <br />Homeowners may qualify for up to $1,500 in tax credits for adding qualifying windows, doors, insulation, roofs, heating and cooling equipment, water heaters, and wood and<br />pellet stoves. <br />The installations must take place in 2009 or 2010 to qualify for the tax credit.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  23. 23. Renting vs Buying a home<br /><ul><li>$1000 per month in rent
  24. 24. 5% annual rent increase
  25. 25. After 5 years you have spent $66,307 in rent.
  26. 26. Net equity gain: $ 0
  27. 27. You have nothing to show after spending all this money.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California <br />
  28. 28. Renting vs Buying a home<br />The rent you pay could build equity in your own real estate.<br />Using this chart, find your month rental payment and you can determine how much money you are “giving away” in rent and interest (5%) over 10, 20, 30 years.<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  29. 29. HOMEOWNERS HAVE TAX DEDUCTIONS<br />The government rewards homeownership through write-offs and deductions on your taxes.<br />Homeowner Deductions<br /><ul><li>Mortgage Interest Payments
  30. 30. Property Taxes
  31. 31. Discount points (closing costs)
  32. 32. It is customary in San Mateo County that buyers pay closing costs. This is negotiable.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  33. 33. TAX DEDUCTION EXAMPLE: <br />3 Bedroom 1 Bath Single Family Home<br />East Side San Mateo<br /><ul><li>Home Price
  34. 34. 20% Down Payment
  35. 35. Home Mortgage
  36. 36. Interest Rate
  37. 37. Annual Interest Paid
  38. 38. Annual Property Tax
  39. 39. Total Deductions
  40. 40. $500,000
  41. 41. $100,000
  42. 42. $400,000
  43. 43. 5.50%
  44. 44. 22,000
  45. 45. 6,250
  46. 46. $28,250</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  47. 47. TAX DEDUCTIONS = TAX SAVINGS<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  48. 48. Tax Deduction Example<br />2 Bedroom 1 Bath Condominium<br />West Side San Mateo<br />Purchase Price $340,000<br />Buyers Combined Annual Salary $65,000 (28% Tax Bracket)<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California <br />
  49. 49. WHAT is a BUYER’S MARKET?<br />Months of Inventory is used as an analytical tool in determining who holds the power in negotiations.<br />Months of Inventory = # homes of sale/#homes sold<br />Supply and Demand…<br />Months of Inventory &lt;4 = Seller Market <br />Months of Inventory =4 = Flat Market<br />Months of Inventory &gt;4 = Buyer Market<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  50. 50. BUYERS MARKET: <br />SAN MATEO COUNTY SINGLE FAMILY HOMEs<br />In Sept 07, months of inventory increased and moved the home market into a buyers market.*<br />San Mateo County Single Family Homes<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />* Cities within the county vary from the total.<br />
  51. 51. STATE OF THE MARKET (May 09): <br />SAN MATEO COUNTY SINGLE FAMILY HOMES<br />At an aggregate level, San Mateo County continues to be a buyers market. Months of Inventory based on closed sales was 4 last month vs 4.7 a year ago.<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  52. 52. STATE OF THE MARKET (May 09):<br />SAN MATEO COUNTY SINGLE FAMILY HOMES<br /><ul><li>Inventory was down 25% to last year
  53. 53. Unit Sales were down 14% to last year
  54. 54. Most note worthy was the significant increase in pending sales: up 5% to last year.
  55. 55. Average Days On Market was 54 days vs 48 last year
  56. 56. Avg Sales Price vs. Original List Price: 93%</li></ul>Median Sales Price: $728,000 (-14% to last year)<br />Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas.<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  57. 57. STATE OF THE MARKET (May 09): <br />SAN MATEO COUNTY SINGLE FAMILY HOMES<br />What drove the 14% decrease in the median home price?<br /><ul><li> A significant increase in home sales below $500,000
  58. 58. A significant decrease in home sales above $1,000,000</li></ul>All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California <br />
  59. 59. BUYERS MARKET: <br />SAN MATEO COUNTY CONDOs &TOWNHOMEs<br />In August of 07, months of inventory increased and moved the condo market into a buyers market.*<br />San Mateo County Condos and Townhomes<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />* Cities within the county vary from the total county picture.<br />
  60. 60. STATE OF THE MARKET (May 09): <br />SAN MATEO COUNTY CONDOS & TOWNHOMES<br />At an aggregate level, San Mateo County continues to be a buyers market. Months of Inventory based on closed sales was 4.5 last month vs 5.3 a year ago.<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  61. 61. STATE OF THE MARKET (May 09): <br />SAN MATEO COUNTY CONDOS & TOWNHOMES<br /><ul><li>Inventory was down 21% to last year
  62. 62. Unit Sales were down 7% to last year.
  63. 63. Average Days on Market was 67 days vs 59 last year
  64. 64. Avg Sales Price vs. Original List Price: 92%</li></ul>Median Sales Price: $420,000 (-21% to last year)<br />Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas.<br />All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  65. 65. STATE OF THE MARKET (MAY 09): <br />SAN MATEO COUNTY CONDOS & TOWNHOMES<br />What drove the 21% decrease in the median condo & townhome sales price?<br /><ul><li>A significant increase in home sales below $500,000
  66. 66. A significant decrease in home sales between $500,000 - $1,000,000</li></ul>All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  67. 67. MORTGAGE RATES ARE HISTORICALLY LOW<br />Aimee Snodgrass Klarich<br />Realtor®<br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  68. 68. WHY BUY A HOME ON THE <br />San FRANCISCO PENINSULA?<br />LOCATION, LOCATION, LOCATION<br /><ul><li>Bridgeless commutes to San Francisco and Silicon Valley
  69. 69. Employment opportunities
  70. 70. No more land to build upon since we are flanked by the bay and the ocean
  71. 71. Moderate weather
  72. 72. Good schools</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California <br />
  73. 73. WHY BUY A HOME ON THE <br />San FRANCISCO PENINSULA?<br /><ul><li> The foreclosure rate of existing homes is low vs other counties allowing the county to bounce back faster</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  74. 74. WHY BUY A HOME ON THE <br />San FRANCISCO PENINSULA?<br />San Mateo County sub-prime loans are only 1.5% of total housing units.<br />SOURCE: FirstAmerican CoreLogic, LoanPerformance Data, U.S. Census Bureau, and Federal Reserve Bank of New York<br />Dec 07<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  75. 75. Advice FROM First-Time Home Buyers: <br />Top 10 Answers from a Survey of 1000 Buyers by California Association of Realtors on advice they would give other home buyers.<br />
  76. 76. Who’s Who In Real Estate ?<br /><ul><li>Lender: Qualifies buyer and provides the home financing.
  77. 77. Buyers Agent (Realtor ® ): Fiduciary responsibility to buyer(s)
  78. 78. Selling Agent (Realtor ® ): Fiduciary responsibility to seller(s)
  79. 79. Escrow Officer: Neutral 3rd party manager of the transaction
  80. 80. Appraiser: Hired by lender to confirm property values
  81. 81. Inspectors: Provide insight into the condition of a home </li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  82. 82. Timeline of Buying a Home<br /><ul><li>Initial Consultation and Planning: Lender or Realtor
  83. 83. Get Pre-Approved for a loan
  84. 84. Search for a Home
  85. 85. Find a Home
  86. 86. Submit an Offer and Negotiate
  87. 87. Final Agreement on Terms and Price
  88. 88. Open Escrow with a Title Company.
  89. 89. Deposit your earnest money deposit into Escrow Account
  90. 90. Appraisal and other further needed inspections and reports
  91. 91. Secure Home Insurance as a requirement of the lender
  92. 92. Removal of remaining contingencies
  93. 93. Final Inspection and Walk Through of Home
  94. 94. Secure loan funds. Deposit your remaining funds into escrow.
  95. 95. Record Deed of Title
  96. 96. You take possession of property</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  97. 97. Financing a Home Purchase<br />Meet with a Lender to see how much you qualify for.<br />Your qualifications are based on the following:<br /><ul><li>Credit
  98. 98. Income
  99. 99. Assets</li></ul>The most important part of this is for you to decide how much you WANT to pay on a monthly basis.<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  100. 100. Is my credit good enough?<br /><ul><li>It’s a fact: qualifying criteria has gotten tighter than in previous years.
  101. 101. Homebuyers need to pay more attention to their credit scores than they did before.
  102. 102. Credit history
  103. 103. Your credit score may impact your interest rate.
  104. 104. Your credit score may impact your down payment requirements.
  105. 105. But you don’t need perfect credit to buy a home.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  106. 106. How much money do I need?<br /><ul><li>For a down payment?</li></ul> Source of Down Payment:<br /> Checking/Savings<br /> Money Market/Stocks<br /> Gift Funds<br /> Borrow from a 401k, 403b, etc.<br /> Your money must be seasoned<br /><ul><li>For closing costs?</li></ul> Appraisal<br /> Processing and Underwriting<br /> Title & Escrow<br />What are Pre-Paids?<br /> Interim interest<br /> Insurance<br /> Impounds<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  107. 107. How much money do I need?<br />Monthly Payment Expenses:<br /><ul><li>Your monthly payments include:
  108. 108. Principal & Interest.
  109. 109. Property Taxes
  110. 110. Insurance
  111. 111. Mortgage insurance - if your down payment is less than 20%.
  112. 112. Association fees - if applicable.
  113. 113. Your maximum monthly payment is calculated using:
  114. 114. Your housing monthly debt.
  115. 115. Your other debt
  116. 116. Again, the most important part is to be comfortable with the calculated monthly payment:
  117. 117. Repairs and maintenance costs are part of homeownership.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California <br />
  118. 118. What type of mortgage should I get?<br /><ul><li>What type of documentation will be required?
  119. 119. 2 pay stubs
  120. 120. 2 years W2s and Federal Tax Returns
  121. 121. 2 months bank statements
  122. 122. What type of product?
  123. 123. What kind of rate?
  124. 124. How long a term?</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  125. 125. What type of mortgage should I get?<br /><ul><li>We’ll help you select the product type that meets your needs:
  126. 126. Conforming loans up to $417,000* for a single-family.
  127. 127. Jumbo Conforming loans $417,001 up to $729,750*
  128. 128. Jumbo loans greater than $729,750*.
  129. 129. Combination loans: conforming first + a second mortgage.
  130. 130. Government loans: FHA & VA.</li></ul>*The conforming ceiling of $417,000 has been raised in high-cost housing markets starting 01/01/2009. The loan limit on these “conforming jumbo” loans varies by location but doesn’t exceed $729,750 in the continental U.S.<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  131. 131. What type of mortgage should I get?<br />What kind of rate?<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  132. 132. What type of mortgage should I get?<br />How long a term?<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  133. 133. Timeline of Buying a Home<br /><ul><li>Initial Consultation and Planning: Lender or Realtor®
  134. 134. Get Pre-Approved for a loan
  135. 135. Select Your Team of Professionals
  136. 136. Search for a Home
  137. 137. Find a Home
  138. 138. Submit an Offer and Negotiate
  139. 139. Final Agreement on Terms and Price
  140. 140. Open Escrow with a Title Company.
  141. 141. Deposit your earnest money deposit into Escrow Account
  142. 142. Appraisal and other further needed inspections and reports
  143. 143. Secure Home Insurance as a requirement of the lender
  144. 144. Removal of remaining contingencies
  145. 145. Final Inspection and Walk Through of Home
  146. 146. Secure loan funds. Deposit your remaining funds into escrow.
  147. 147. Record Deed of Title
  148. 148. You take possession of property</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  149. 149. Choosing the Right REALTOR<br />Things to consider…<br /><ul><li>How well does the agent know the market you are considering? How will the agent help focus your search?
  150. 150. How well does he or she listen to you?
  151. 151. Do you feel that the agent will be respectful of your desires, enabling (not forcing) you to make your own decisions?
  152. 152. Do you feel they will negotiate hard for you?
  153. 153. Do you feel a rapport?
  154. 154. Are they clear on their services and expectations?
  155. 155. Per the survey of Home Buyers from CAR:
  156. 156. Check references
  157. 157. What online services does the Realtor provide?</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  158. 158. Choosing the Right Home<br />Meet with a Realtor®<br /><ul><li>Discuss present and future housing needs and wishes
  159. 159. Single Family Home, Condo or Townhome
  160. 160. Number of bedrooms and bathrooms
  161. 161. Home square footage and lot size
  162. 162. One story vs two story
  163. 163. Desired neighborhoods
  164. 164. Location vs. commute to work/school
  165. 165. Desired amenities (garage, laundry, pool, etc)
  166. 166. Your family size- current and projected
  167. 167. Hobbies or special needs to accommodate
  168. 168. Preferred condition of the property (fixer upper?)
  169. 169. Any non-negotiable points for you
  170. 170. Current housing and terms of current contracts
  171. 171. Learn and discuss types of sales</li></ul>Aimee’s Buyer Services Packet in Appendix<br />Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  172. 172. Timeline of Buying a Home<br /><ul><li>Initial Consultation and Planning: Lender or Realtor®
  173. 173. Get Pre-Approved for a loan
  174. 174. Select Your Team of Professionals
  175. 175. Search for a Home
  176. 176. Find a Home
  177. 177. Submit an Offer and Negotiate
  178. 178. Final Agreement on Terms and Price
  179. 179. Open Escrow with a Title Company.
  180. 180. Deposit your earnest money deposit into Escrow Account
  181. 181. Appraisal and other further needed inspections and reports
  182. 182. Secure Home Insurance as a requirement of the lender
  183. 183. Removal of remaining contingencies
  184. 184. Final Inspection and Walk Through of Home
  185. 185. Secure loan funds. Deposit your remaining funds into escrow.
  186. 186. Record Deed of Title
  187. 187. You take possession of property</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  188. 188. NEGOTIATION HOMEWORK: How much should I offer?<br /><ul><li>Know the sales history of similar sold properties within the area over the past 3-4 months.
  189. 189. Compare sale and list price
  190. 190. Months of Inventory
  191. 191. Days on market
  192. 192. Know the current property offer and disclosure packet activity, if any
  193. 193. Know the property condition and short-term repair expenses (including HOA Assessments)
  194. 194. Know the seller's situation and motivation for selling.
  195. 195. Examples of other things to negotiate on other than price:
  196. 196. Closing Costs
  197. 197. Repairs
  198. 198. 30 day rent backs
  199. 199. Know your financing options and have your pre-approval letter from your lender for the exact offer price</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  200. 200. Making an offer on a property<br /><ul><li>Your offer will be written on a Purchase Contract by your Realtor.
  201. 201. Traditionally, the accepted deposit (earnest money) is 3% of the offer price.
  202. 202. The down payment and amount financed will be determined.
  203. 203. Understand what is included with the purchase of the home as in fixtures & appliances and negotiate accordingly.
  204. 204. Decide on needed inspections and contingencies to be negotiated into the contract
  205. 205. Examples of Contingencies
  206. 206. Financing
  207. 207. Appraisal
  208. 208. Property Condition
  209. 209. The close of escrow date will need to also be negotiated
  210. 210. The lender will most often influence the closing date so your lending partner must be involved during the negotiation process</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  211. 211. You’re In Contract… Now what?<br /><ul><li>Open Escrow with a Title Company.
  212. 212. Traditionally done by your Realtor.
  213. 213. Deposit your earnest money deposit into the Escrow Account
  214. 214. Complete appraisal and inspections
  215. 215. Secure home insurance as a requirement of the lender
  216. 216. Remove contingencies (if all is satisfactory)
  217. 217. Final Inspection and Walk Through of Home
  218. 218. Secure loan funds. Deposit your remaining funds into escrow.
  219. 219. Record Deed of Title
  220. 220. You take possession of the property</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />
  221. 221. Economy Through 2009<br /><ul><li>Recession through mid--2009
  222. 222. Improved outlook in second half 2009
  223. 223. Weak job picture, unemployment rate up
  224. 224. Inflation no longer a concern – for now
  225. 225. Permanent Stimulus Package in 2009
  226. 226. CRITICAL CONCERN: How soon will financial system stabilize and enable economic activity to return to normal? Once the market turns around, the fed level to slow inflation will be increased interest rates.</li></ul>Aimee Snodgrass Klarich<br />Realtor ® <br />http://www.AimeeKlarich.com<br />Eileen Horan<br />Mortgage Broker<br />Mortgage California<br />

×