Why Are Home Warranties Important for Buyers?

What are home warranties? How important are they to home buyers, really?

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What are home warranties? Are they really important for buyers? 

A home warranty is essentially an insurance policy that protects your home from problems with electrical wiring, plumbing, appliances, etc. Even if no issues are spotted during your initial home inspection, complications can arise unexpectedly, and they often do. In fact, it always seems like something goes wrong right after a buyer closes escrow. The home warranty can help you with that. 

Generally speaking, home warranties last for one year. The cost of the home warranty really depends on the type and size of the property, but typically range from $350 to $700. Adding extra features, such as a pool, spa, roof, or refrigerator, can increase the cost of the home warranty as well. Prices may vary depending on what you want to be covered. 

Home warranties also provide peace of mind for homeowners. Typically, we ask the seller to pay for the home warranty as part of our offer. That is negotiable, but when you buy a home, the seller usually pays for the one-year home warranty. 

A home warranty will give you peace of mind.

It is important to keep in mind that home warranties are not catch-all insurance policies. They do not cover everything, and there is a service fee attached to each claim. So, every time you call someone from the home warranty company to come out, they do charge you a $65 to $90 fee each time their contractor has to inspect your property. 

Still, home warranties do offer peace of mind to new homeowners, even if they are not a perfect solution to every problem you may encounter. You do need to read the fine print. That said, home warranties have replaced many water heaters over the years, so it is important to get one when you buy a home. 

If you have any other questions about home warranties or about the real estate market in general, give me a call or send me an email. I would be happy to help you!

Why the Winter Is an Ideal Time to Sell Your Home

Sellers want to know if they should sell their home now or wait until spring. I’m here to let you know why listing now is a much better option. 

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One of the most popular questions we get this time of year is whether sellers should wait until spring to sell or sell their home now. It is actually much better to list your home now than during the spring season, and here are the reasons why. 

There will be way more competition in the spring. It’s true that more houses sell during the spring, but that statistic won’t always work in your favor. For example, we had a client earlier this year wait to sell during the spring and six houses with the same floor plan popped up on the market. This decreased competition for their home drastically. 

The numbers really do indicate that it is better to sell during the wintertime. Over the course of the last three years in the San Fernando Valley, during the winter, there are about 2,400 to 2,700 total homes on the market. Compare that to 3,500 to 3,700 homes on the market during the summer months. That’s a huge difference in the amount of inventory and in turn, a huge difference in competition. 

It’s better to list your home now than during the spring.

Interest rates might also be higher in spring, which means fewer people will be able to afford your home. If the Fed raises interest rates, it is likely that trend will continue well into 2017. 

You will also get more serious buyers in the wintertime. Listing your home in the colder weather means avoiding the “open house crowd,” which consists of people strolling in to eat the free cookies and probably haven’t even gone through the pre-approval process yet. 

Finally, there are lots of job transfers happening at the very end and very beginning of the year. These people need to get into a home fast, and catering to that demographic is a smart move for the seller. 

If you have any further questions about selling your home this holiday season, feel free to give me a call or send me an email. Happy holidays! 

How Do Recent Rate Hikes Impact Buyers & Sellers?

What caused the recent interest rate hike? What impact will rates have on buyers and sellers? I'm joined by a home loan expert to help me break it all down for you.

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In the wake of the election, we've seen a recent interest rate hike. Today I'm joined today by Hovik Sahinian of New American Funding to talk about the underlying causes of why the rate hike happened. 

As Hovik points out, we have been expecting a hike for a while now, and we knew it would happen after the election, regardless of the winner. The market has taken this into account, and we're seeing people move away from the bond market and into the stock market. This naturally causes an increase in rates, and we've seen rates go up about 0.5% since the election.

That 0.5% increase has had an effect on buyers, as Hovik points out; he's seen clients have up to a $50,000 decrease in the mortgage amount that they qualify for. For example, a buyer who qualified for a $500,000 loan before the rate hike would only qualify for about $465,000 after. 

If you're selling, now might be the best time to get a deal done.

Home sellers need to be vigilant as well after the rate hike. As Hovik says, if you're close to where you need to be as a seller right now, you should take any opportunity to close your transaction sooner rather than later because rates will continue to go up. This means your house will be less affordable to more and more buyers.

It is still a great time to buy a house while rates are still near historic lows. Hovik says that if he was a buyer getting pre-approved for a loan in this market, he'd leave himself some cushion in case rates do creep up during a transaction. That way, you won't have to go through the qualification process again.

I'd like to thank Hovik for joining me today. If you have any questions for him about home loans, give him a call at (818) 808-7790.

If you have any questions about real estate in Porter Ranch, as always, give me a call or send me an email. I'd be happy to help you.

What Repairs Should You Make Before Selling Your Home?

Whether you are selling your home this year or next spring, there are a few repairs you should make now in order to maximize your home sale. I’ll go over the top repairs today.

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Whether you want to put your home on the market before the end of the year or you’re waiting for 2017, there are a few repairs that you can make right now to have a successful home sale. 

First of all, fix your flooring. Refinish hardwood floors and replace old carpeting with neutral white or tan carpeting. If there are stains on the carpet, buyers will think the carpet needs to be replaced; unfortunately, buyers tend to overestimate the cost of replacing flooring. It will be less expensive for you to take care of the flooring yourself. You should also replace chipped or cracked tiles. 

You should also paint the ceiling and the walls. Touch up worn spots, get rid of wallpaper and dated wood panelling, and apply a fresh, neutral coat of paint to make your home look brand new. 

When it comes to kitchen improvements, don’t spend thousands of dollars renovating the entire room. Instead, replace old cabinets, add new hardware to your cabinets, and replace leaky faucets or sinks. 

You don’t have to completely renovate your kitchen to maximize your home sale.

The same holds true when it comes to remodeling the bathroom; you don’t have to redo the whole room. Just invest in a new floor, update the fixtures, or install some new lights. 

Finally, don’t forget curb appeal. You may or may not need to replace your roof, but you should definitely patch up any cracks in the cement, resurface your driveway, and repaint fences so that your home is more appealing to buyers. 

Taking care of these things now will pay off when you sell your home later. If you have any other questions about putting your home on the market, give me a call or send me an email. I would be happy to help you!

Recently Closed: 11626 Killimore Avenue

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Check out this recently closed listing in Porter Ranch! This home was listed with another agent for 61 days when they decided to call us and we got it sold in a short time frame.  For more information, give us a call or send us an email. We'd love to hear from you!

Should You Invest in Solar Power?

Solar panels can be a great investment. However, you need to look into some of the details first before you decide to lease or buy a system.

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Does it make sense for you as a homeowner to invest in solar panels for your home? It depends. First, you want to determine whether you want to lease the system or buy it outright. If you are going to lease it, there a couple of things you need to remember:

1. You don’t receive any federal subsidies or tax savings—all of those go to the leasing company.

2. You have to qualify for the full cost of the system, which will also count against your debt ratio. 

You need to know how much energy you’ll use.

If you decide to purchase the system, there are a few distinct advantages, including:

1. Tax benefits and federal subsidies.

2. The ability to get loans from government programs like HERO or PACE that will help you finance the purchase.

3. A power purchase agreement where you can decide how much energy you are going to pay for each month.

When it comes down to it, you need to know what your energy usage is. If you’re going to use a lot of energy, it does make sense to go for solar panels. Think about installing solar panels as a kind of home improvement. Some buyers in the future may not want solar panels, or they may want to replace them with the advances that this technology continues to make in this field.

If you have any questions for us about solar energy or real estate, give us a call or send us an email. We would love to hear from you.

How to Get a Contingent Offer Accepted

Although contingent offers are more common in today’s market, there are a few things you have to do in order to make sure your offer is accepted. 

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Although we talked about how to get a contingent offer accepted a long time ago, it’s still prevalent in today’s market. Since home prices have increased so much in the last few years here in Southern California, contingent offers are being accepted more often.

First of all, it’s incredibly important that you are ready to go. If the seller is going to accept your offer, they don’t want to sit around for a month waiting for you to prepare your home for the market. Your home has to be ready to go on the market immediately. You also need your pre-approval letter and down payment ready to go if you want your contingent offer to be accepted.

You should also keep in mind that you may have to pay a bit of a premium when you make a contingent offer, especially if there are multiple offers on the home. After all, you’re asking the seller to take their home off the market for an extended period of time in a seller’s market. The seller most likely won’t want to do that unless they know they will get something in return, so don’t be surprised if you end up paying a little more for the home.

Your current home needs to be ready to go on the market immediately.

Since your offer is contingent on your ability to sell your current home, you will have protective measures in place. For example, the property is contingent on a concurrent close of escrow. That is an important clause to have in your contract because if some act of God happens and your replacement home is suddenly unavailable, you will not end up on the street. The concurrent escrow clause is necessary to be able to close on your replacement property.

The bottom line is that you can still buy a home with a contingency in today’s market, but you have to be smart about it. Make sure you work with the right real estate agent to guide you through this process.

If you have any other questions about contingent offers or about our current real estate market, give us a call or send us an email. We would be happy to help you!

What’s Happening in Porter Ranch Real Estate?

The Porter Ranch real estate market is showing positive trends all over the place. Low inventory and low interest rates are great for buyers and sellers.

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It may be hard to believe, but we’re already in September. With the fall season here, we thought it would be a great time to give you a quick update on what we’re seeing out there in the real estate market.

Inventory is still quite low in Porter Ranch, as are interest rates. A combination of both has allowed prices to remain stable. However, there’s not a lot out there for buyers to choose from because we haven’t seen as big of an influx in inventory this summer as we’re used to. Inventory is down about 9.5% from this time last year, but buyers are still active. There are lots of buyers looking to take advantage of low interest rates by getting into new homes.

We won’t know where rates are heading until December.

With higher demand and a diminished supply, a lot of people who have bought homes over the last few years are choosing to not sell. They are instead keeping their properties as rentals and buying another home. That’s keeping a lot of inventory off the market.

What can you expect over the next year? A lot of that is going to have to do with what happens with our inventory and our interest rates. We won’t really know much more until December when the Fed meets after the election. Here’s what we do know: it’s a great time to buy with these historically-low rates.

If you have any questions for us, don’t hesitate to reach out. We look forward to hearing from you soon.

How a Cluttered Garage Can Affect a Home Sale

If you’re selling your house, an overly-cluttered garage can affect the process in two different ways.

The first is by prolonging the general home inspection. If you have a ton of items along the walls, that will make it extremely difficult for the home buyer to conduct the inspection. They will most likely have to reinspect the property after you’ve removed those items. This can become an issue if you have a short inspection time period that’s been requested because the buyer will ask for more time until you actually clear everything out.

Inspectors need room to do their jobs.

The second is by obstructing termite inspections. If a termite inspection has been requested for the garage, the termite inspector has to be able to poke into the garage walls to check for subterranean and dry wood termites. If they can’t do that and then report that they were unable to complete the inspection because of too many personal items impeding their work space, the buyer will once again request that the inspection contingency not be removed until everything is cleared out.

If you’re putting your home on the market, you need to make sure there’s enough room in your garage for the home inspector and the termite inspector to do their jobs.

If you have any other questions, please give us a call or send us an email. We would be happy to help you!

What You Need to Know About the Proposed Tax Increases

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With so much focus on the presidential election this November, it’s easy to overlook some of the proposed state and local measures on the ballot that can affect homeowners in Southern California. Today I’d like to take an opportunity to discuss some of those with you so that you’ll be well-informed when it comes time to vote.

One of the proposed tax increases is coming from a Los Angeles city bond which will pay for housing for the homeless. If it passes, the city will be authorized to take out a $1.2 billion bond, which they will pay for by adding a new tax to property tax bills.

The city claims that the bond money couldn’t be used to pay for supportive services like mental health and substance abuse treatment, but only to buy land and housing. This would mean that the city would be allowed to use its powers of eminent domain to acquire land throughout Los Angeles. At that point, the land could be leased at a low cost to developers who win the contracts to build homeless housing.

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These tax hikes require the approval of two-thirds of the voters.

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The way this would work is that property owners would pay between $4.50 and $17.50 per year for every $100,000 of assessed value for up to 28 years in order to pay off the $1.2 billion homeless housing bond.

In addition, the Los Angeles County Community College District is seeking voter approval for a $3.3 billion facility bond, which would be paid for with another property tax as well.

Los Angeles County also wants voters to pay for parks with a parcel tax of 1.5 cents for every square foot of buildings on a property. This works out to about $22.50 per year for a 1,500 square foot building. This parks tax would affect businesses, too. Large commercial properties like warehouses and retailers would be hit with sharp tax increases, which will either be passed onto their customers with higher prices, or be absorbed as damage to their bottom line.

Luckily, because of Prop 13, initiated back in 1978 when the Tax Revolt Initiative was passed, the upside is that all of these proposed tax hikes require the approval of two-thirds of the voters in order to actually become law.

There is a lot to consider for November, not only with regard to the presidential election, but as far as local measures are concerned as well.

If you’d like more information about any of the proposed tax measures that we discussed today, or if you have any questions about real estate, feel free to reach out to us. Looking forward to your call!

What You Need to Know About the Porter Ranch Market

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Today, I’d like to give you a quick July real estate market update for Porter Ranch and the San Fernando Valley.

Earlier this month, we talked with Brandon Moss of Prime Lending about how Brexit would affect the interest rates here back at home, and we’ve already seen some of the effects of that:

Interest rates are now hovering around 3.5% for most home buyers and many are using the low rates to their advantage by taking the opportunity to refinance. This has put a huge strain on the system because there is such huge demand right now for people looking to buy as well as refinance.

On the home purchase side, this high demand is driving inventory down. If you go back to July of 2015, approximately 3,200 homes were up for sale in the entire San Fernando Valley, but right now there are fewer than 2,800 properties for sale. Why is this significant? July is one of the busiest months as far as inventory is concerned, so if something comes on the market right now that is priced accordingly, it will not stay on the market for very long and will quite often have multiple offers.

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You’re seeing a very strong and healthy real estate market right now.

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Since interest rates have dropped, we’re beginning to see more and more multiple offer situations than we did even earlier in the year. The bottom line is that we’re seeing a lot of demand from buyers, and there is simply not enough supply to go around.

This is also affecting what is taking place during escrow. Because so many lenders are backed up, a few different scenarios are taking place. First, there is a high demand for appraisals due to the large numbers of refinances and home purchases. The second scenario is that many lenders are experiencing delays when closing escrow. We’re starting to see a lot of lenders, especially the big banks, unable to perform on schedule due to high-volume backups. As a result, you should be sure to select a lender that is able to perform per your contract, since many appraisers have been unable to keep up with demand on time.

At the end of the day, you’re seeing a very healthy and strong real estate market right now in Porter Ranch. Again, there is a lot more demand than there is supply, which makes for quite the seller’s market.

If you’ve got any follow-up questions about the real estate market, you can always give us a call or send us an email and we’ll be happy to answer them!

I Worked Night and Day to Find this Dream Home

“This young couple had some unfortunate twists and turns in their home search process, but they're very relieved that they got into the home of their dreams in the neighborhood of their choice. Communication was a major barrier in this transaction. These buyers were having trouble getting on the same page as the lenders, builders, sellers, etc. However, I was able to clean up the lines of communication and push the deal through to closing. This couple couldn't be any happier!” - Scott

How Brexit Affects Us Here in Porter Ranch

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Today I’m joined by our preferred lender Brandon Moss from Prime Lending to talk about the impact of the United Kingdom leaving the European Union and how it affects our market here in Porter Ranch.

As Brandon points out, we saw stocks plummet significantly after the Brexit. Basically, it’s the fear of the unknown; we don’t know how this will affect the U.S. and the global economy, but we’re seeing investing move away from stocks and toward the safe haven of bonds. The U.S. dollar has improved as well. This helps interests rates here at home.

It’s predicted that the Brexit will have an impact on interest rates. Brandon noted that the Fed will meet this summer, and because of the Brexit, the likelihood of them raising rates is basically zero. More importantly, Brandon says, it may take the rate hike off the table entirely for 2016. The Fed looks at both the U.S. and global economies when considering interest rates.

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It may take the rate hike off the table entirely for 2016.

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It has a positive impact on home buyers because it has meant lower rates now, and likely also lower rates in the coming months. It’s a perfect time for buyers to get into a home, or refinance. Even if you’ve refinanced in the last six months, rates are better now, and it would be worthwhile to look at it again. If you can get a good interest rate, lock it in! This market can change, and now is a historically low time for interest rates.

If you have any questions about lending or mortgages in general, you can email Brandon at BMoss@PrimeLending.com or you can call him at 818-256-4330.

How to Make the Best BBQ This 4th of July

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Fourth of July is just around the corner, which means we’re already in peak grilling season! Today I have the pleasure of being joined by Courtland Miller, owner/chef at the Main Kitchen Cafe, to help us review what not to do when grilling and barbecuing.

1. Don’t put the sauce on the meat first. If you’re going to marinate your meat, do it the night before. When you take your meat out of the refrigerator, let it sit out so it’s not too cold and it cooks evenly all the way through. Be sure to wipe away any excess marinade. If it’s too wet when it hits the grill, the extra sugar and oil in that marinade will catch fire and char your food with an unsavory taste.
2. Don’t cook on a high heat setting. Make sure that your grill is on high when you turn it on and when you season it. Before you lay your meats on, however, lower the heat so that the temperature sits between 300 and 350 degrees. A high temperature can burn the meat and cause it to cook unevenly on each side before flipping it over. And don’t assume barbecuing heat time and grilling heat time are the same. Whereas grilling utilizes higher heats to sear each side of the meat and lock in the juices, barbecuing goes low and slow for a more tenderizing process.




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Never cook meat on a high heat setting.

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3. Don’t prod or poke the meat. Seems obvious, but we’ve all done this one before. Prodding or poking the meat while it’s cooking can release the juices and render the finished product drier than it should be. Don’t poke holes in it like it’s a baked potato.
4. Let it rest! Too often people see the meat come off the grill and start slicing. All that does is let the juices and flavors out. Instead, let it rest for 10-15 minutes. A good idea would be to cover it with aluminum foil to allow the juices to evenly distribute throughout the meat.

Have a safe, happy, and satiating Fourth of July! If you’re looking for some great venues to catch all the fireworks, check out Timeout.com and the LA Times. If you have any real estate questions, be sure to call us or shoot us an email.  

The City’s Plan to Fix Broken Sidewalks

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Uneven and broken pavement might be a very familiar sight in your neighborhood. For that very reason the city of Los Angeles intends to roll out a new program this July - the Fix & Release Sidewalk Repair Program.

The LA city council recently unanimously endorsed a plan that will spend $13 billion over the next three decades to fix broken sidewalks in LA. The city estimates that there are more than 4,500 miles of broken and unsafe sidewalks that cost the city millions in lawsuits every single year.

The city plans on repairing sidewalks next to residential, business, and industrial buildings, regardless of whether the damage was caused by a tree planted by the city or not. Once repaired, the city will offer a 20-year warranty to sidewalks for residential properties. Business and industrial properties will only have a five-year warranty because of the excess of foot traffic and wear and tear.

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City council recently endorsed a plan to spend $13 billion over 30 years to fix sidewalks in LA.

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A repair spending gap will be put in place to ensure even spending and to avoid spending too much in one single sight. The final ordinance will put caps based on certain parcel sizes and types. There will be rebates, so that property owners will be encouraged to fix their own sidewalks within the city. The rebate will only be offered for a limited time. To receive this rebate, homeowners must make the repairs themselves in the first three years of the program.

The rebate would be about half the average cost per square foot. One city councilman estimated it would be about $15 per square foot. One nice thing is that the city will be waiving permit fees. If you don’t want to wait up to 30 years for a repair, you can do the work and get the rebate for about half the cost of doing the repair.

The city will begin certifying and keeping records for which sidewalks are in good condition and what works they’ve been able to do so far, and to ensure they’re compliant with the Americans with Disabilities Act. The Fix & Release program is really a fair solution to a problem that’s been plaguing LA for decades, and it’s a far cry from the hidden point of sale program that they were trying push through initially.

If you have any questions about this program or would just like some more info, give us a call or send an email and we’ll happily send some out to you!

Every Detail Taken Care Of For You

“These homeowners in Granada Hills were very happy with me, especially when I managed to bring in an offer on their home two days after I put it up on the MLS. You should have seen the crowds at the open house, too! Cars were lined up for blocks! These sellers have known me since I was about eight years old, and they didn't walk away disappointed. Part of the reason for this was that I stayed in constant contact with them throughout the entire transaction.” - Scott

Are There Any Homes Left in Porter Ranch?

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It's hard to believe that we're almost at the end of May already. So far this year the Porter Ranch market has gone up in value and inventory remains very low. It's low all over Southern California. In 91236, only 76 homes are for sale out of 11,209 single-family units! Low inventory and low rates - hovering around 3.625% - are fueling the market. In open houses, we're seeing big groups come through, across the board in all price ranges.

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The Porter Ranch market has gone up in value.

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One thing we're seeing is that sales are down 15% to 25% in certain neighborhoods. A lot of it has to do with the fact that not many people are actually selling. Through April though, the amount of closed escrow is almost identical to 2015. We've only got 1.5 months of inventory available right now. A healthy market would have four or five months. We don't expect much of a change this summer.

Please give us a call with any real estate questions! We'd love to work with you. 

Helping this First-Time Buyer Move into the Perfect Home

“This first-time buyer was out looking around in the neighborhood on her own, but she was struggling to find a good home for a decent price. Finally, she researched the best agents in the area and she ended up choosing my team. From there, her home search took a turn for the better.

She was impressed by my knowledge of the neighborhood, as well as how I was able to walk her through the transaction step-by-step. It's always fun helping a family buy their first home, and I think this family will be very happy for years to come!” - Scott

Why to Get a Termite Report Early in Porter Ranch

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If you’re thinking about listing your Porter Ranch home, you should get a termite inspection, and you should do it before you even list. Most sellers wait until after they’ve sold their home to get this inspection, and more often than not, sellers are sorry they didn't do it earlier.

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You should get a termite inspection before you list

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There are three main reasons why:

1. You need to know exactly where you stand before negotiating the sale price. If you wait until your home is in escrow to get the inspection and find out your home needs thousands of dollars in treatments and repairs, it’s really too late to go back to the bargaining table and ask for a higher price to cover the cost. If there’s nothing wrong, you have nothing to worry about.
2. Getting stuck with a rotten wood patio or deck. With the inspection done ahead of time, you’ll know whether or not they need to be replaced. If they’re shot, you can then decide whether to replace or scrap it. In fact, most wooden decks and patios add little to no value to your home. Quite often they are shrugged off as unimportant until it’s too late and the buyer insists that a new one is built.
3. It should be done before painting or replacing your roof. It’s a shame to spend the money upgrading your curb appeal with paint or a new roof only to find out that you’re going to have to spend thousands more dollars to correct termite damage, fungus or dry rot - especially considering a termite report costs less than $100.

If you have any questions about termite reports and inspections or any other real estate questions, give us a call or send us an email! Thanks again for watching our video blog.