What Would YOU Do to Get That House?

What Would YOU Do to Get That House? [INFOGRAPHIC]

Great Infographic here.

How Much Do I Need to Buy A Home?

The good news is that there are lots of folks out there who are very interested in lending you as much as 95% of the purchase price of your home, at very favorable interest rates. Furthermore, they are willing to spread out the payments over a long period of time so that you can afford the house you want. Home loans typically are offered in amounts of 80%, 90% and 95% of the price you are paying for the house. You are expected to pay the remaining amount in cash from your own funds.

The smaller the down payment, the greater the requirements are on a buyer’s financial condition. The reason a lender is willing to lend up to 95% of the value of the house is that history has shown real estate to be such an excellent investment. Lenders expect that the home will be worth more in the future than it is today - so their investment in your home is considered very safe.

That's also why the interest rate you can obtain on a home loan is one of the best around. Consider that America's largest and strongest corporations borrow at what is called the "prime rate," and that today you can borrow a home loan - fixed at the same rate for many years - at substantially less than the prime rate. Lenders have found that home loans tend to be excellent investments, and you benefit every month when you make your loan payment.

What if I don’t have enough for the down payment?

Today's homebuyers have more loan options. A homebuyer may have excellent credit and the ability to make the monthly mortgage payment, but not have the cash for the down payment. For this situation a nontraditional loan program such as an 80-10-10 may be the best loan. Homebuyers should not despair and assume that a home is out of reach. There are many loan options available for many different financial situations.

Questions? We are happy to help! For more information please contact The Clarke Team at 650-489-5399 or sold@clarketeam.com

First Time Buyers

Approaching the task of buying a home can be overwhelming. It is a complex event during which there is so much to learn and to consider. How much can I afford? Where will the down payment come from? How much will I need and where can I find the best loan? How do I begin the look for a home, what should I expect from my real estate agent and what type of home is right for me? These questions are just the beginning. Buying a home is one of the largest financial transactions in one’s lifetime, yet most people know very little about it. When embarking on the path to home ownership here are two very important points to remember: You can and should understand everything that is happening in the homebuying process. You will need to learn some new terms, apply some new concepts and take the time to learn about purchasing a home. Always remember that you are the most important person throughout the entire real estate process. It is easy to think that many others may have more expertise or clout, but the truth is that you, the buyer, are the one person in this transaction that makes it all happen. If you decide not to buy, the entire process comes to a complete stop. If you plan from the beginning to approach the homebuying process intelligently and with confidence, you are much more likely to buy the home you’ve always wanted, and have the confidence that the best decisions were made.

Steps To Buying A Home

1. Make a decision to rent or buy. 2. Figure out how much you can afford. 3. Find the right real estate agent. 4. Get pre-approved. 5. Decide what kind of home you want. 6. Find the right neighborhood. 7. Begin the home search. 8. Preview the homes. 9. Make an offer. 10. Apply for a mortgage. 11. Have the inspections conducted. 12. Close the transaction. 13. Move into your new home.

Benefits of a Buyer's Agent

For most of us, buying a home is the biggest single investment we’re likely to make – and we’re only likely to do it maybe once or twice in a lifetime. The process is, by nature, filled with checks and balances – and many complex details. Traditionally, agents were legally obligated to protect the interests of the home seller. Today preferences are changing. One of these changes is that more homebuyers are choosing to have their own real estate agent, known as a buyer's agent, to legally represent them.

A buyer’s agent represents you, the buyer, not the seller, and has full fiduciary duties, including loyalty to you. By definition, the buyer’s agent has your best interests in mind throughout the transaction. The percentage of homebuyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer’s agent last year, and four out of every five buyer’s agent agreements were in writing.

The benefits of buyer representation is the dedication of a buyer’s agent to the home buyer. The buyer’s agent and homebuyer establish a mutual agreement, known as a buyer agency agreement, that will entitle the homebuyer to, but is not limited by:

Loyalty The real estate agent must act in the best interest of the buyer.

Disclosure All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller’s financial condition, property’s true worth, commission split with other brokers, and legal effect of important contract provisions.

Confidentiality Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.

Accounting in dealings Reporting of where any money placed in the hands of the broker is kept.

Reasonable Skill and Care Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the homebuyer will be represented in the purchase of the home. This scenario is different from a typical transaction where the buyer is not technically represented.

Questions? We are happy to help! For more information please contact The Clarke Team at 650-489-5399 or sold@clarketeam.com

2/10 Broker Tour

It was slow for a while, but now that the holidays are over and Super bowl Sunday behind us, new homes are starting to come on the market. While this is normal for this time of year, we also hope it’s a sign that the market remains strong and recovery is on it’s way.

Highlights of Tuesday’s tour, 2/10/2009 in San Carlos:
There is a beautiful older – but completely renovated – 4 bedroom 2 ½ bath Tudor home on Madrona that was on tour today. It's a lovely home with a lot of character, charm plus designer touches and upgrades. It has wonderful views and a nice landscaped backyard. It also has a separate office that is currently being used as an artist studio. The office is not connected to the main house and is accessible from the front side. The main considerations I see are the many levels and stairs. You need to go upstairs to get into the house and the master suite (which is large and gorgeous) is also upstairs. Arundel Elementary and Carlmont High School districts. At $1,359,000 and the seller willing to buy down buyers interest rate up to 2 points on the loan – it’s definitely worth a look!

There were 2 homes in close proximately that were very different. One was a 3/2 on Clifford that was 1750 sq’ and tastefully upgraded for $962,000. The other was a 4/2.5 around the corner on Victoria Manor that was 2470 sq’ and listed for $1,399,000. Both are in Clifford Elementary and Sequoia High School districts. Victoria Manor was larger and on a quiet cul-de-sac, but it was not as appealing inside.

We have some clients interested in investment property, and there was a duplex on tour on Laurel Avenue. While we were unable to go inside, as it is tenant occupied, I drove by to check it out. It’s on a nice quiet part of Laurel with wide streets. The duplex was in nice condition and attractive from the outside. Each 2-bedroom 1bath unit has been professionally renovated. Private decks with yard full of fruit trees. Beautiful Bay view. Both units have full basements for home office or additional storage. Listed at $1,125,000 with a reported rental income of $50,280 per year. Not bad!