Costa Mesa's Neighborhood Blog

Is Now the Right Time to Buy an Orange County Home?

When considering whether or not to buy an Orange County home, there are many things to consider.  The first is what's important to you about buying and Orange County home.  Once you have determined this, it's easier to decide if it's the right time for you.  Other than your personal situation, there are other very important things to consider when deciding whether or not to buy an Orange County home.  Two very important considerations are the current prices of Orange County homes and the interest rates as these two items together will determine how much you will pay for your Orange County home.

For information on the current market to help you to decide if it's the right time to buy an Orange County home, please see the video below.

Please contact me to discuss buying an Orange County home at 714-319-9751.

Should You Buy an Orange County House Just Because You're Tired of Shopping?

I've helped many buyers, both first time buyers and others who have bought before, and they buy for many different reasons.  They may buy because they are getting married, because they are having another child, because they want a second home, a beach house, a retirement home, to build equity, for security.  There are many, many reasons to buy a home.

But, there are also reasons not to buy a home. 

Should you buy a home because the home buyer tax credit is expiring?  This may be heresy, but I don't believe this is a good enough reason to buy.  It may be an impetus, but it should not be a resason in and of itself.

Should you buy a home just because interest rates are historically low or because median home values in Orange County have fallen 40%?  Again, I don't believe these are reasons in and of themselves, but they may certainly be a factor in your purchase.

Each person should have their own reasons, needs and goals they are fulfilling when purchasing a home.

However, I came across one recently with which I disagree.  Buying a home just because you are tired of looking is not (in my opinion) a good enough reason to buy even in this time when so many people are putting in multiple offers because of low inventory. 

You cannot just return a home if you decide you don't want it.  Perhaps you are used to returning an item to the store if you decide later it wasn't right for you. Perhaps you don't mind paying a 5% or 10% or 15% restocking fee. 

It's not that simple when you buy a home.  If you decide the fit of the home isn't right.  Did you ever think about the fact that the "restocking fee" to sell a home you don't like is likely to be 8% or more.  This is $40,000 on a $500,000 home.  This doesn't account for your own closing costs to buy the home.

Now, this does not mean that I believe that everyone will find their perfect, dream home and that they should not buy a home until they find "the one." Because if this is what they expect, they're likely to be disappointed, but if your expectations are reasonable for your price range, be patient until the right one comes along.  And, if I show my clients several homes, and they don't find one, we sit down to re-evaluate what they truly want and need so that we aren't spinning our wheels.  But, we don't just pick a home because they're tired, we sit down and discuss what's missing in the homes we've seen and what works for them.

So, if you are thinking about buying a home just because you are tired of shopping, make sure you won't regret it and wind up paying a restocking fee.

See below to see first time home buyers who found the right home and are not concerned with facing a restocking fee.

Buying an Orange County Home  - I Signed My Loan Docs - Can I Have My Keys Now?

As real estate professionals, there are so many things we take for granted.

Recently, a client said to me, "I signed my loan documents.  Can I have my keys now?"

And, I realized that it's important that the buyer and the seller understand all of the steps in the final closing process for buying an Orange County home.

The basic steps of buying a home:

1. Buyer searches for the right home. 
2. Buyer makes an offer for the home.
3. Seller accepts the offer or makes a counter offer.
4. If there's a counter offer, buyer chooses to accept or counter offer is made.
5. Agreement on the offer.
6. Escrow opens.  Initial deposit money sent to escrow and escrow instructions are signed.
7. Inspections are done.
   • Appraisal
   • Third party inspection
   • Termite 
   • Any other inspections
8. While inspections are being done, the loan officer is working on any necessary conditions on the loan.
9. During this time, seller provides disclosures to the buyer regarding the home.
10. Once all contingencies are completed on the loan, loan documents are provided to escrow for the buyer to sign.
11. Then the buyer comes in to sign the loan documents.

Some people believe this is the final step to buying a home because in other states, like Texas, which is a wet funding state, everybody gathers at the closing table, and once loan docs are signed, keys are transferred, and the deal is done.

However, in Orange County, California, signing loan documents is not the final step in buying a home.

12.  In California, once loan documents are signed, the documents must be sent back to the lender who reviews them before funding the loan. 

13.  Once the loan is funded, the title must be recorded in the new buyer's name before the purchase is complete.

In Orange County, California the county recorder allows special recording.  This means that they allow the new title recorded late in the afternoon, which often allows a home purchase to close the same day as the loan is funded.

Once there is confirmation that the title has recorded, the best part of my "job" happens.  I get to give the new homeowner their keys.

Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale. Copyright © 2009 by Christine Donovan, All Rights Reserved. Buying an Orange County Home - I Signed My Loan Docs - Can I Have My Keys?

By the Way How Much Do You Charge to Help Me Buy an Orange County House?

I had a new client ask me this the other day after we discussed her needs and goals my ability to help her reach them by helping her buy her Orange County home.

Generally, here in California, the buyer's agent is paid by the seller.

When the seller lists his home with the listing agent, they agree on a commission, and usually, the listing agent then splits this commission with the buyer's agent.

Although this is the most common situation, there are other ways in which the buyer's agent may be compensated upon the buyer's purchase of an Orange County home.  The buyer and his agent may enter into an agreement under which the buyer agrees to compensate the buyer's agent a certain percentage of the purchase price regardless of what the seller has agreed to pay.  This may be partially covered by the amount, if any, paid by the seller.

This might occur when the buyer wants to buy a for sale by owner that is not paying commissions to any agent, or when the commission offered by the seller/seller's agent is less than that agreed to between the buyer and his agent.

Why would the buyer agree to pay commissions to his agent if he buys a for sale by owner or a home with a lower commission?

A buyer's agent looks out for the best interest of the buyer, and finding a good buyer's agent who understands the market and the pitfalls that can occur when buying an Orange County home can save the buyer more than the cost of the commission.

A good buyer's agent can assist the buyer in:

• Understanding the true market value of the home.
• Writing a strong offer that is likely to be accepted.
• Understanding the contracts and disclosures that come with buying an Orange County home.
• Getting the best financing available for the buyer's situation.
• Answering the myriad of questions that come up while buying an Orange County home.
• Providing buyers with a list of trusted inspectors and/or contractors.
• Negotiating for repairs and othe issues that come up during escrow.

If you are curious about the benefits of having a buyer's agent, please contact me at 714.319.9751.

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale. Copyright © 2009 by Christine Donovan, All Rights Reserved. Orange County Fairgrounds for Sale to Highest Bidder?  By the Way, How Much do You Charge to Help Me Buy an Orange County Home? 

Orange County Has a Scarcity of Homes for Sale

Despite the claims of the media that this is a buyers' market and that sellers are begging buyers to come buy their homes, Orange County proves the old adages that real estate is local and that it's all about location, location, location.

Two years ago, a buyer might have had his pick of a $500,000 Orange County home and had the time to ponder his choices for several days before making a decision and been pretty certain that his final choice would still be available to purchase.

Today, it's a whole different ball game.  If a buyer ponders too long on a well-priced home, he can expect that it will have already received multiple offers, often over list price.  Doesn't sound like a buyers' market to you?  Well, you're not the only one.

Many buyers who are just starting to look for an Orange County home, are discovering the truths about the current market.

When considering that the price range under $1,000,000 accounts for over 91% of the sales of Orange County homes, it becomes even more apparent that the Orange County homes market for this price is red hot making homes even harder to attain in this market.

So, if you want to take advantage of the low prices and historically low interest rates that are currently available for Orange County homes, what can a potential buyer do?

First, be patient and persistent.

Then, stay tuned for my next post on how to purchase an Orange County home in today's market or call me at 714.319.9751 for an immediate action plan. 

Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale. Copyright © 2009 by Christine Donovan, All Rights Reserved. Orange County Has a Scarcity of Homes for Sale.

Buying an Orange County Home Can Be Confusing but It Doesn't Have to Be!

I had a friend comment today that he's beginning to realize that it's confusing and complicated to buy a home, that there's a lot to know and think about when you make what seems to be the relatively simple decision to buy your first home.

I think many of us in the business (any business) take for granted our knowledge and sometimes forget that others do not know many of the things we do.  I know I have friends in the computer industry who speak over my head within moments of beginning a conversation.

With that in mind, I wanted to offer some tips for buying a home in Orange County in today's market.

1.  Decide if it's the right time for you to buy.

• Look at the cost of renting versus buying. 
  • Renting may be cheaper in the short run, but rents will go up and mortgages won't if you choose a fixed rate, long term mortgage.
  • Owners must pay for their own maintenance.
  • Income tax deductions for home owners.

2. Don't believe the media - it is not necessarily a buyers' market.

• Many areas of Orange County have very few homes for sale under $500,000.
• There may be a lot of competition for these homes.

3.  Be prepared.

• Make sure you have been pre-approved for a loan before you start to seriously look for a home.
• Make a list of everything you would like in a home, and then narrow it down to your top 2 or 3.
• Make sure you and anyone else buying a home with you are on the same page.  If their top 3 contradicts your top 3, there's going to be a problem in finding the perfect home.
• Get your questions answered.  If you don't know what points, LTV,TIL or anything else is, don't be afraid to ask.

4.  Be patient.

• Expect to have to make several offers before one is accepted if you are trying to buy in a competitive area or at a competitive price range.
• It would be great to get the $8,000 Tax Credit, but making sure it's the right home will be a better deal in the long run.

5. Don't rush, but be ready to make a decision.

• This sounds contradictory and may be counter intuitive. 
• However, many of the best homes are only on the market a few days before they sell.  
• Get to know the homes that are on the market in your area and price so that you will be comfortable to make a strong offer when the right home comes up for sale.

6. Work with knowledgeable professionals whose advice you are comfortable taking.

• Buying a house can be a long, confusing, sometimes frustrating process.
• Having a trusted professional at your side can make a huge difference both in your stress level and in actually getting your home.

There are many things to consider when looking to purchase your first home.  If you are confused by the myriad of decisions or have already answered many of them and just want to find the right home, please call me at 714.319.9751 or e-mail Me!

Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!

***************************************************************************

About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for saleto view all OC homes for sale.

Copyright © 2009 by Christine Donovan, All Rights Reserved. Huntington Beach Real Estate Minute - Huntington Beach Market Report.

I Have Cash!  Why is it so Hard to Buy an Orange County Home?

Recently, I had a client ask me this very question.  It seems like a reasonable question.  She doesn't need to get a loan.  She doesn't need to sell a house.  She has money, and she just wants to buy a house.

So, what's the problem?  Why is she having so much trouble buying an Orange County home?

Actually, there are several reasons that make it so hard.

•  Under $750,000 is a sellers' market.

This may be hard to believe given the current status of the economy, the real estate market in general, and the media, but it's true.

There are only about two months of inventory in this price range for Orange County homes. Meaning, if nobody put a house up for sale, most of the homes would be sold at the end of two months.

• Below $500,000 is an even hotter sellers' market.

There seems to be pent up demand, both from buyers wanting to buy to live and from investors looking to get a great deal.

• First Time Buyer Credit Expires November 30th.

This is driving many first time buyers to purchase their first Orange County home, and is effecting inventory.

•  Many Orange County homes are selling with multiple offers.

This goes back to the lack of homes for sale in Orange County, in the lower price ranges and results in huge competition.

• Short Sales make up a large percentage of the inventory for Orange County homes.

Short sales occur when a seller owes more on their home than it's worth and is asking the bank to take less than it's owed upon sale of the home.

It can take months to find out whether the bank will accept the deal, which means it's taking longer for many buyers to buy or even know if they'll be able to buy an Orange County home.

• Foreclosures are selling like hotcakes.

The average time a foreclosure is for sale before going into escrow is only about two weeks.

• The lower the price, the more competition you will face.

Everbody wants the best price to buy their Orange County home for less, and the better priced a home is, the more competition you will be facing.

• To effectively compete, you need to be looking at any homes that are of interest to you quickly and making a decision.

It's not unusual for a well-priced home to go into escrow in a matter of days.  So, dawdling will not help your chances of buying an Orange County home.

So, why is she having so much trouble finding a home to buy?  There's a lot of competition; she's looking in a very low price range.  Additionally, if you choose not to look at a particular segment of the market, like short sales, it will make it more difficult to find your new home.

What can you do to buy an Orange County home in this market? 

1. Be patient.  Expect to make a few offers before you get into escrow.
2. Make sure you are fully pre-approved, not just pre-qualified for a loan.
3. Give a stong earnest money deposit.
4. Make a good down payment, if you can.
5. Be willing to look at homes as they become available.
6. Understand the market where you want to buy so that you're ready to make a decision quickly when you find the right home.

Do you have more questions about buying an Orange County home?  Please feel free to contact me at 714.319.9751.

Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!

About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale.

Copyright © 2009 by Christine Donovan, All Rights Reserved. I have cash? Why is it so hard to buy an Orange County home?