Is It Better to Build or Buy?

When it comes to choosing between buying and building a home or between buying a new or resale home, there are a lot of variables to consider.

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Is it better to buy or build a house? Or is it better to buy a new or existing home?

One of the pros of building a house from scratch is that you’re allowed to pick out the details of the home, such as the floor plan and other certain amenities. 

Personally, however, I always think it’s a little more expensive to build a home, and I wouldn’t look forward to picking out the thousands of details necessary to build a house. These include all the building codes and regulations from the city that you have to deal with. 

More importantly, with all the recent natural disasters in Florida, Texas, and California, I believe that hiring people to build a home will be more expensive than normal. Due to the shortage of supplies created by these natural disasters, the cost of materials will be more expensive as well.

I wouldn’t look forward to picking out the thousands of details necessary to build a house.

When it comes to buying a new or existing home, buying new construction is like buying a new car because it’s a brand-new property. No one has ever lived in it before, and projects like landscaping will need to be done after the fact. If you can find a similar home that’s maybe three to 10 years old in a similar neighborhood, you’ll find that projects like that have been taken care of. 

When buying a brand-new property, landscaping can cost anywhere from $25,000 to $75,000. Adding upgrades to the home itself can also cost you thousands of dollars. If you buy a resale property, there’s a good chance those upgrades will already have been done. Because that resale home isn’t brand new, the list price will also be lower too.

There are a lot of variables to consider, so what’s best for you depends on what your specific needs are and what you’re willing to do and pay for. 

If you’re trying to weigh the options of each of these scenarios or you have any other real estate questions, feel free to give us a call or shoot us an email. Until then, have a happy new year and we look forward to seeing you again in 2018!

How WiseOceans Is Working to Restore the Coral Reef

I recently talked to Hannah Harries from WiseOceans about their Reef Restoration Project. Learn more about how they are working to reverse the effects of climate change.

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The Seychelles is composed of 115 scattered islands in the Indian Ocean. This tiny nation finds itself at ground zero of climate change. 

The sea level has risen almost a quarter inch each year.  El Niño’s warmer sea patterns are killing the coral, which usually prevents beach erosion. 

However, one local organization is trying to make a difference. 

Today, I’m joined by Hannah Harris, a Marine Educator at WiseOceans. 

A lot of people don’t know this, but 70% to 90% of the world’s coral reefs have been destroyed over the past year thanks to climate change and El Niño. 

El Niño is a global weather event which occurs every two to seven years. It causes a shift in temperature patterns in the equatorial Pacific, which has global repercussions. El Niño is the warm phase of the cycle. Higher-than-average sea temperatures are bad news for corals. 

70% to 90% of the world’s coral reefs have been destroyed.

WiseOceans is working hard to reverse the damage done to the coral. 

WiseOceans has been based in the Seychelles for five years now. They are dedicated to raising awareness about the fantastic marine life in the area. Getting people up close to the fish is an important step in getting them to care about the environment. 

About two years ago, WiseOceans launched their Reef Restoration Project. The aim of the project is to restore an area of reef within the bay. Guests at the Four Seasons hotel can come out and snorkel in the bay to see the wildlife, and WiseOceans educates them about restoring the reef. 

WiseOceans has a coral nursery to grow new coral. They take corals that have broken off naturally from the reef (“We call them corals of opportunity,” says Hannah) and place them in the coral nursery. There, the coral can grow and thrive in a protected area. After a few months, the coral will reach a healthy, reasonable size. From there, they are transplanted straight onto the rock. 

People can sponsor their own corals in the nursery and sponsor the reef. 

This process is very time consuming, which is why a project director is there to look after the coral day in and day out.

Sign in the capital Victoria says in Creole, "Climate change is already here."

Guests can get involved in the Reef Restoration Project, as can the local community. The education provided by WiseOceans helps people understand how vital the reefs are to us as human beings. 

WiseOceans gets everyone they can involved. Hannah says, “We have workshops, talk at the local schools, run youth groups, take people snorkeling—the more local people we can get to care about the environment, the better.” 

I would like to thank Hannah Harries for taking the time to educate us all about the Reef Restoration Project. You can visit www.WiseOceans.com to learn more about how you can help give back and protect your environment, and for more information visiting Seychelles, visit the official website of the Seychelles Tourism Board www.seychelles.travel.

As always, if you have any real estate questions, just give me a call or send me an email. I would be happy to help you!

Is Now a Good Time to Take Advantage of Current Interest Rates?

Interest rates are low right now, but they won’t stay that way for long. Whether you’re a buyer or a seller, take advantage of them while you still can.

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What are interest rates like in our current market?

According to Brandon Moss, our preferred lender, 2017 has been a great year for interest rates. We’ve seen them hover just above historic lows the entire year. 30-year fixed rates are still right around 4%, and fixed-rate adjustable-rate mortgages (or ARMs) are in the mid-to-lower 3% range.

However, the Federal Reserve is scheduled to meet this December, and there is a very good chance they’ll hike up interest rates. Because of this, Brandon suggests that all buyers and sellers get out there and take advantage of these rates while you still can. 

Right now is a great time to be a seller,  because more and more buyers are jumping off the fence and entering the market. It’s also a great time to be a buyer because you won’t face as much competition due to the season. 

You don’t need a large down payment to get into a property these days.

Another question we often get from buyers is, “Do I really have to come in with 20% down?”

No, you do not. There are a lot of great mortgage programs out there that don’t require you to put 20% down. If you’re a first-time homebuyer, you can put as little as 3% down. If you’re a move-up buyer buying a jumbo property, you can put down just 5% or 10%. Even investors can get in with just 15%. You don’t need a large down payment to get into a property these days. 

If you have any more questions about loan programs, feel free to give Brandon a call at (818) 256-4330. If you have any other questions about our Southern California market, don’t hesitate to give me a call or send me an email. I’d be glad to help!

Don't Miss out on the Fall and Winter Marketplace

Whether you’re looking to buy or sell, there are several advantages to doing so in the fall or winter months.

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Today, I’d like to give you an overview of the top reasons to buy or sell in the fall or winter months.

First, I’d like to start with some of the advantages of selling at this time of year:

1. Less competition on the market. During this time of year, the inventory is down. This contributes to less competition, putting you in a better position by default.
2. The house is show-ready. Because kids are in school during these later months, houses tend to be a little cleaner. In turn, this means that houses require a lot less preparation before a home showing.
3. Vacations are over. With people having returned from their trips and outings during the warmer months, more buyers are back in town.
4. Buyers are more serious. Buyers who are on the market at this time of year aren’t just looking for fun. These buyers are genuinely committed to finding and purchasing a home.
5. The appeal of fall decor. Who doesn’t love fall decor? The change of colors adds some natural beauty to any property, and fall decorations on the interior of a home can make buyers feel cozy and warm.
6. It’s cooler outside. Why would anyone want to move when it’s hot out? The colder weather is perfect for the moving process.

Some of the best deals of the year are done in the fall and winter months.

Now, I’d like to move on to the advantages of buying during fall and winter:

1. Good deals are available. Some of the best deals of the year are done in the fall and winter months, especially for properties that have been sitting on the market for quite some time.
2. It’s a lot easier to look at houses during school season. When the kids are in school, it’s easier for people to go out and browse the market freely.
3. Fewer multiple offer situations. Since many of the homes on the market have been sitting for awhile, there is less competition for certain types of properties.
4. Year-end sales for furniture. The later months of the year are a great time to take advantage of sales, which will aid you in furnishing your new home.
5. It’s easier to contract necessary services. Since there tends to be less activity on the market at this time of year, booking contractors won’t be as difficult.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

A Market Update for San Fernando Valley Real Estate

We’ve seen some great trends in the real estate market so far this year. Here’s what we’re keeping an eye on.

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It’s been awhile since we’ve given you a market update for Porter Ranch and the San Fernando Valley. There are a few statistics we’ve been tracking that we wanted to give you an update on.

Back in March, the median price in the San Fernando Valley jumped to $671,500. It’s been sticking around that level since then. We’re still seeing a lot of low inventory, which is keeping the market very strong.

Back in June, we saw a spike in inventory. In the three months since, we’ve seen a considerable drop as buyers continue to take advantage of the opportunity to buy with a low interest rate. We had 92 properties for sale in Porter Ranch in June, but we only have 75 on the market right now.

The average time for a home to sell for the San Fernando Valley as a whole is 39 days, but it only takes an average of 32 days in Porter Ranch. The key to a quick sale is pricing. If a home is priced right, it should be sold within a week or two.

The key to a quick sale is pricing.

Only 2% of home sales in the San Fernando Valley are coming from foreclosures these days. With that being the case, you’re starting to see certain neighborhoods hit their pre-2007 highs in terms of home values. The California Association of Realtors predicts a more healthy appreciation of 2% to 4% this year. 

That’s all we’ve got for now. If you have any questions about the market or anything else related to real estate in the meantime, don’t hesitate to give me a call or send me an email. We can’t wait to hear from you.

Answering Your Questions About Home Warranties

Having a warranty on your home can make life easier for homeowners, landlords, and tenants. Watch this short video to learn how.

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Today, I have the pleasure of being joined by Heidi Marshall with First American Home Warranty as we discuss the most important things you should know about home warranties.

Here’s what Heidi has to say:

One of the biggest benefits of having a home warranty is the peace of mind. You don’t have to do research to find, for example, a plumber or an AC company. With a home warranty, it covers your major appliances—the air conditioner, electrical, plumbing, and so on. If there is a claim that needs to be placed, you just call the number and can have any questions about repairs answered.

Another great thing about having home warranties is that there is no charge for replacement refrigerant or freon if your AC unit isn’t functioning properly. Normally that can be very pricey.

It can also be a great option for rentals, which includes all parties. Landlords won’t need to worry about a phone call in the middle of the night about a leak in the bathroom. Tenants can call the warranty company 24/7, place the claim, and the landlord won’t have to worry about finding an emergency plumber.

One of the biggest benefits of having a home warranty is the peace of mind.

And we’re all over—if you have a rental in Los Angeles, Orange County, or Nevada, you can place your claim in any of those areas. It makes life easier both on you, and on your pocketbook.

Many clients over the years have been able to take advantage of their home warranties, whether it be for replacing a water heater or other important home appliance.

It’s very important that when your agent writes the contract, they put in the proper coverage. Make sure that those things that are important to you are covered, such as an air conditioner or a pool. Personal appliances that you bring in the home should also be covered.

If you have any questions about home warranties, please contact Heidi by phone or email and if you have any real estate questions, please contact us at the Scott Himelstein Group. Thanks again for watching our video blog.

How Can Insurance Prepare You for Disasters?

In light of the recent natural disasters that have been happening around our country, I want to talk today about the importance of being properly insured.

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In light of the recent natural disasters in our country, I wanted to talk today about how you can be prepared for these kinds of happenings.

To help me cover this subject, I recently met with Zachary Schneiderman of Schneiderman Insurance. Having insurance coverage is just one of the many ways you can prepare for potential disasters.

Something Zachary suggests to everyone is to ask for an annual review. To do this, call your insurance agent and make sure that your home is insured to its current replacement value. 

This is especially important given the fact that a study recently revealed a high percentage of homes to be uninsured based on their current replacement values.

Make sure you are properly insuring your home and its contents.

If you are underinsured by over 20%, certain insurance policies will carry clauses stating that they may only insure you for a percentage of the loss.

Making sure you are properly insuring your home and its contents is critical. It’s also always a good idea to review your other insurance policies, as well. It is much better to be safe than sorry. 

Even small, preventative measures can make a big difference. For example, you should absolutely save your insurance agent’s number into your phone. Also, store your policy number somewhere that is easily accessible. 

Being able to contact your agent at a moment’s notice will become greatly helpful in the event of an emergency. However, remember to talk to your agent before filing a claim. An insurance agent will help you determine whether the claim is appropriate to file. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The Modern Way to Meet Your Neighbors

Have you heard about Nextdoor? It’s a social networking site for neighborhoods and today we’re discussing some of its features.

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Recently I had the opportunity to speak with Karilyn Thibodeau from the social networking website Nextdoor. 

If you aren’t already familiar with Nextdoor, the main thing you need to know is that it’s a networking site for neighborhoods.

Since the trend of introducing yourself to the neighbors in person has become less and less prevalent, Nextdoor’s goal is to connect communities. 

The thing that sets Nextdoor apart is that everyone must be verified. If someone is shown as living in a home on Nextdoor, that information is verified by the site to ensure that you know who you’re really connecting with. 

Additionally, everyone must upload their real name and photo. Putting a face and name to your neighbors can make a big difference. 

Nextdoor has also recently added a new Pet Directory feature. In fact, one major use people have found for Nextdoor is communicating with their neighbors to find lost pets. 

Putting a face and name to your neighbors can make a big difference.

When you upload your pet’s information on Nextdoor you’re not only taking preemptive steps in case they’re ever loss, you’re also letting your neighbors get to know you a little better. 

Many people have been in a situation where they’ve approached a neighbor on a walk to ask their dog’s name. With Nextdoor’s Pet Directory feature, you’ll already know. 

Karilyn was also excited to let me know about another exciting feature coming soon to Nextdoor—a real estate section. Homeowners understand that listings in their neighborhood directly affect the value of their own homes.

When you live in a neighborhood, it’s natural to be curious about what’s going on in the world of real estate as it relates to your community. 

The real estate section in Nextdoor is different because, as with everything else on the site, what you are able to see is always specific to your neighborhood. You’ll be able to see what listings are priced at, what agents are working with those listings, and more. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What Is a Pocket Listing?

Pocket listings can relieve a great deal of stress from the seller. However, there are several things to consider before listing in this way.

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Today I wanted to talk to you a little bit about pocket listings. A pocket listing is one that the seller intends to sell but hasn’t yet officially listed or put into the MLS. 

Therefore, these listings won’t be found anywhere online. When it comes to a listing like this, the seller has often met with an agent who they’ve asked to find them a buyer. 

Pocket listings have their own set of advantages and disadvantages. One of the biggest advantages is that you can maintain your privacy throughout the sale.

Since pocket listings aren’t readily available to just anyone in the public, you have a lot more control over who sees your property and who sees your home. 

Pocket listings can work very well depending on your circumstances.

This also means you have fewer buyers and fewer showings to deal with. Days on market is much less of an issue for this kind of listing since they aren’t on the MLS. 

When my team and I work with these kinds of properties, we put them on something called the off-market property list. As soon as a person tells us they’re interested, we do our best to match the listing with homebuyers who we’re working with. 

This has been very successful for us and many of our sellers. However, there are clear disadvantages to pocket listings. While fewer buyers do mean less stress, it also means that certain benefits associated with higher exposure are greatly reduced. 

With pocket listings, our full, aggressive marketing package doesn’t work. These kind of listings naturally see less activity and foot traffic. 

Ultimately, pocket listings can work very well depending on your circumstances. The decision whether or not to list in this way is really up to the seller—as only they can truly know and understand their individual situation. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

A New Website to Connect the Whole Valley

Today I wanted to talk to you about this great new website that the Valley Relics Museum has set up for residents of the Valley.

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Today I’m joined by Oscar Urrutia, the vice president of the Valley Relics Museum. Today we’re going to talk about their new website.

The Valley Relics Museum began over 30 years ago when Tommy Gelinas, the founder and curator of the museum, began collecting artifacts from iconic places in the Valley area. As places began to close down, he went out and grabbed these artifacts himself so that they could be enjoyed by generations to come. This museum is open to the public every Saturday from 10 a.m. to 3 p.m. with free admission. 

The museum’s new website, MyValleyPass.com, was created to bring you a curated list of all the arts and entertainment events happening in the San Fernando Valley. The website now has some of those events posted, so be sure to check it out to plan your weeks ahead.

What’s so great about this website is that it puts all the events on one page so that you don’t miss ones you wouldn’t have known about because you live in a different part of the Valley. 

The Valley Relics Museum is open to the public every Saturday.

The Valley Relics Museum also has their own events planned in the coming weeks, including the San Fernando Valley Summer Drive-In Nights, where they will be showing locally-filmed movies including "E.T." and "The Karate Kid." You’ll be able to listen to the movie through your car stereo when you drive up, and there will be a live band performance before each movie—so be sure to show up early.

The museum has also set up a new historical film bus tour that will be starting in September, where participants will be taken to historic film locations around the San Fernando Valley. There will be two tours available for you to choose from, so look out for news of those tickets going on sale as well.

If you have any other questions about MyValleyPass.com, you can contact Oscar at 818-678-4934 or through their website.

If you have any questions for me or you’re looking to buy or sell a home in the area, give me a call. I’d be happy to help.

Southern California Real Estate Market Update

How is the market doing in the San Fernando Valley area? I’ve got the recent numbers in my latest video.

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How does the summer market look in our area? Before we launch into the update, I wanted to let you know that we have a couple of links for a list of all the local fireworks shows happening on July 4th. 

Inventory has increased since April. That’s fairly typical of this time of year, where we see an uptick in inventory as the spring season moves into summer. The properties are still selling, but the inventory numbers have definitely increased. 

In the end of April, we had about 2,200 homes for sale in the entire San Fernando Valley, and now we’re looking at almost 2,700 properties that have been listed. In Porter Ranch, there were 65 properties for sale in April, and now you’re looking at closer to 90 properties.

With these numbers, the inventory is still quite low.

With these numbers, the inventory is still quite low. Obviously there is more to choose from for buyers than there was a few months ago, but that inventory is still quite tight. Furthermore, even though we’re seeing more properties come onto the market, it doesn’t make much of a difference in inventory because demand is so high. 

You can really see that reflected in the amount of closed escrows, which is up 30% from this time last year. In May of this year, we saw over 1,700 closed escrows in the San Fernando Valley, which is up from 1,300 in May 2016. 

The other big news is that the Fed raised the interest rate again, but the rates really haven’t been that affected. We’re actually hovering around 4.5%, and buyers are currently qualifying with rates between 3.75% and 4% interest. 

Right now the market is still very strong and properties are selling if they’re priced correctly. If you have any questions or you’re looking to buy or sell a home, please give me a call. I’d be happy to help you!

3 Questions You Should Ask Yourself Before Listing on Airbnb

Are you thinking about buying or listing an Airbnb property? There are a few questions you should ask yourself first.

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You’ve probably heard of the property website Airbnb before. You may have even stayed in an Airbnb property before. My own family has stayed in Airbnb properties all over the world. It’s a great way for homeowners and investors to make a little bit of extra money, and more buyers are purchasing properties lately to use for this sole purpose.

If you’re thinking of listing your current home on Airbnb or buying a rental property to use as a rental property for Airbnb, there are a few questions you should ask yourself to know if you’re making the right choice.

First, have you picked a good location? As the first rule of real estate goes: location, location, location. In order to be a successful investment, demand for lodging has to exist in your specified area. It wouldn’t make sense to have an Airbnb property in a place that has very little tourism. Your property should be close to attractions and transportation. A good view helps, as well. 

For your Airbnb to be a successful investment, it has to be in the right area.

Second, how much time and energy are you willing to invest? Airbnb properties don’t rent themselves. You’re expected to provide a clean space, and guests will expect certain things like clean towels, tourist information, and a way to reach you in case they have any problems. Hosting can be difficult and time consuming. You can hire a service to remove some of that burden, but that doesn’t come cheap. 

Third, are you hosting Airbnb by the book? In places like New York and San Diego, they’re cracking down on properties because they’re greatly affecting the hospitality industry. Laws and regulations are always changing, so you need to make sure you’re following all of the rules and paying all necessary taxes in your area. 

Renting out your place on Airbnb may not be a full-time business endeavor, but make no mistake—it requires effort and attention to detail. Consider that before buying or renting a property on Airbnb. 

If you have any questions about Airbnb properties or want to take a look at some Airbnb properties on the market, feel free to give us a call or shoot us an email. We look forward to helping you.

What Are Some Important Tips for Purchasing a Fixer Upper?

Buying a fixer upper can be a stressful task, but there are certain tips you can follow to make sure the process goes smoothly.

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We’ve all seen those shows on HGTV where a lovable team of construction-savvy husbands and wives, fathers and sons, or siblings and business partners buy a rundown house and in 30 minutes of TV time turn it into a masterpiece and create tens of thousands of dollars of instant equity. 

While that scenario is certainly possible, these shows gloss over some of the most stressful parts of actually buying a fixer upper. Lots of people overlook the expenses that are involved and the expertise needed to handle so many different facets of the process. In the end, though, the allure of a fixer upper can be irresistible. If you budget your renovations right, you can get a steal of a deal on a rundown house and customize it in any way you desire. 

Do your homework before embarking on a fixer upper.

Here are some tips to be mindful of if you’re going down the fixer upper path so you can be prepared for what’s ahead:

1. Get a home inspection. This will help you find out what you’re in for behind the scenes, such as the plumbing system, electrical framework, and the HVAC units. You may have been able to turn on the water and flip on the lights when you made the offer, but the electrical system could be a recall, or the HVAC might be on its last leg. Older homes might not be up to code with electrical systems and could have dangerous materials in them. If you don’t know about these things up front and deal with them, it can come back to bite you. 
2. Bring in an architect and/or contractor. Many buyers of fixer uppers want to make big structural changes, and an architect or contractor can help you with this kind of thing. They can estimate the cost involved and help with design elements. Do your research when hiring contractors—the cheapest is rarely the best option. A good contractor can give you an honest estimate for your projects and help you stay on schedule.
3. Check the zoning. This isn’t the most fun process, and you rarely see it on TV, but zoning can go a long way in determining what is and what isn’t permitted to do on a property. Zoning laws vary from city to city, but you can do a lot of research about it online. 
4. Look into some tax incentives. Depending on the area you live in, you might be eligible for a tax abatement or a tax credit for improving a property’s value. 

A fixer upper can be a long and stressful project, but if you have the patience to research what you need to research, you can find yourself in your own custom dream home with a good amount of free instant equity. 

If you’re considering buying a fixer upper or have any other questions, don’t hesitate give us a call. We’d be happy to help you.

Three Reasons We Are Still in a Seller’s Market

Even though interest rates have shot up considerably since December, we are still in a strong seller’s market. Homes in the San Fernando Valley and Porter Ranch are selling quickly and we expect this trend to continue for the foreseeable future. 

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One question that we’ve been getting bombarded with on pretty much a daily basis is, “Why are we still in a seller’s market if the rates have gone up dramatically since December?” 

There are several reasons why the San Fernando Valley and Porter Ranch areas are still in a seller’s market. A few of them stand out in particular.

First, we have extremely low inventory. Right now, we have just 1.5 to 1.7 months of available inventory in most neighborhoods in the San Fernando Valley. In Porter Ranch, there are just about 60 properties for sale out of the 11,409 single-family units that are in the area. For comparison, there were over 300 properties for sale during the foreclosure crisis in 2008.

Secondly, you are seeing a situation where homeowners are moving up but not selling. They were able to secure such a low rate when they bought the property originally that it makes sense for them to keep it, rent it out, and qualify for a new home. As a result, there is less inventory coming on the market.

The lack of new construction at entry-level price points is disappointing.

There isn’t a lot of new construction taking place right now, either. Part of it is because of zoning laws, part of it is because there isn’t any more space to build out in the San Fernando Valley. The homes that are being built don’t cater to the largest pool of buyers in the entry-level market. This includes buyers who are coming back into the market after a past foreclosure and buyers who are coming from other areas in the market like Pasadena, Burbank, and Glendale. The latter group is getting a lot more bang for their buck in areas like Porter Ranch and Granada Hills.

Don’t anticipate anything changing in the near future. We should be in a strong seller’s market for a while now. Despite the fact that rates have gone up a bit, we are still seeing more and more buyers come to the market in order to lock in rates before they go up even more.

If you have any questions for us, don’t hesitate to give us a call or send us an email. I would love to hear from you.

What’s Happening in the San Fernando Valley Real Estate Market?

Today I’m bringing you the latest market update for the San Fernando Valley and Porter Ranch.

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What’s going on in our local real estate market?

Last time, we let you know that inventory was incredibly low. It has gone up a bit in the spring buying and selling season, but it is still very low. 

At the end of March, there were only 2,100 homes for sale in the entire San Fernando Valley. In Porter Ranch at the end of March, there were only 45 homes for sale out of 11,409 single-family homes in the area. That number actually went up above 60 at the beginning of April, but due to the number of buyers looking for homes, that number has already reduced into the low 50s. I expect that trend to continue and repeat itself over the course of the next few months because buyers are anxious to take advantage of current interest rates. 

The number of homes currently under contract in the 91326 zip code is 55. The number of homes that have actually closed in the 91326 since the beginning of 2017 is 94. The amount of homes that have actually closed throughout the San Fernando Valley is down significantly from last year to this year, which again has a lot to do with the lack of inventory we’re currently seeing. 

If you’re not priced correctly, don’t be surprised if you end up sitting on the market for awhile.

If homes are priced correctly, we are still seeing multiple offers across the board. Buyers are being picky and cautious so if you’re not priced correctly, don’t be surprised if you end up sitting on the market for awhile. 

If you have any questions about the market or real estate in general, feel free to give us a call or send us an email. We would love to hear from you!

What Do You Get With an Umbrella Policy?

Have you considered an umbrella policy as a homeowner? I'm joined by an expert to help me explain what you get with this type of coverage.

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Umbrella policies are extremely important if you own a home or rental property. To help me explain why, I'm joined today by Zachary Schneiderman of Schneiderman Insurance Agency.

An umbrella policy adds liability coverage on top of underlying policies. So if you have auto and homeowners insurance, they each have their standard liability limits. The umbrella policy requires a certain minimum amount of liability underlying it. It usually adds on in $1 million increments over your home and auto. It's about $300 a year for two cars and a home, which isn't that much money to spend for a lot of liability coverage. 

If you have an auto accident or an accident at home, that liability you carry isn't always enough when you think about the catastrophes that can happen. Any sort of accident in your home can bring liability against you as the homeowner. An example would be someone getting hurt on the diving board if you have a pool. That's why you want to be sure you have enough protection to hopefully settle the matter with the other party.

An umbrella policy adds liability coverage on top of underlying policies.

Another reason an umbrella policy is so important is for things like getting sued after an auto accident. 

If you don't have enough insurance and someone is severely injured in an accident, the medical costs and pain and suffering costs awarded by the court can be well above the $250,000 you have as your limit of your auto policy. An umbrella policy provides you that extra money for a very cheap price and gives you the ability to have an insurance company step in and defend you and settle the matter so that nobody comes after your assets. If you don't have enough money on your auto policy in this example, they're going to go somewhere else to find  the rest or if.

If you're a landlord and have rental property, the umbrella policy is really a no-brainer. Anything you own as a personal liability policy—home, auto, motorcycle, boat, jet skis, etc.—you can have under your umbrella policy. You can have a rental property under it as long as it's four units or fewer. It becomes a little bit more expensive for every unit you add on, but you add that liability with one policy over all of those other elements you own and give yourself a lot more protection. Remember, when you're in those positions, you likely have more assets. 

It's not a lot of money to add that liability. It's a simple solution to giving you peace of mind no matter what instance comes up. As Zachary says, they don't know what claims will be brought against you, they just know that there's always the potential. 

If you have any questions about these policies, you can reach Zachary at (818) 322-4744 or visit his website.

As always, if you have any real estate questions, don't hesitate to give me a call or send me an email. I'm always happy to help!

How to Give Your Curb Appeal a Boost This Spring

 Ryan La Fleur from Four Seasons Nursery shares some tips on how to spruce up your landscaping with fresh plants.

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Spring is here! That means it’s time to start adding some plants around your home. Today, Ryan La Fleur at the Four Seasons Nursery is going to share some tips on the best ways to spruce up your landscaping. 

The plants you should choose to add a little pizzaz to your home have to do with timing. Right now is the best time to plant pretty much anything. If you get plants from a nursery, you need to keep in mind that they have been babied. Keeping up with the care of those plants is going to take some time and energy. 

The good news is, spring allows plants to adapt to their surroundings. Instead of experiencing a major climate change, the weather gradually increases. Spring is like a training period for summer, which means if you plant them now, your plants will thrive in the hotter weather. 

Planting in the spring allows plants to adapt to their surroundings before summer hits.

If you’re selling a home, your plant selection is a little more focused. Although flowers can add a great pop of color for home showings, they will die very quickly and need to be replaced if the home doesn’t sell that particular weekend. It’s better to buy a plant that offsets the color of your pre-existing landscaping. For example, if you have green bushes, get a few plants with red or gold in them that will stay that color. You won’t have to replace them as often, and you still get a great pop of color. 

If you have any questions for Ryan, you can reach him at (818-700-0092). 

As always, if you have any questions about real estate, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you! 

Tips for Preparing Your Home for the Spring Market

Today I’m going over a few tips for preparing your home for the spring market. 

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With spring right around the corner, I thought today would be a good time to give you some tips on how to prepare your home to sell in the spring market. 

First, you need to neutralize and depersonalize your space as much as you can. Buyers want to be able to walk into a house and visualize themselves there, which means it’s time to start decluttering and stowing away items you don’t need either in the garage or in a storage unit. You don’t need to take down every personal photo, but toning down the personal items is a must. 

Next, now is a good time to replace any flooring or touch up any areas that need new paint. A fresh coat of paint goes a long way in making your home feel move-in ready. Remember to stick with neutral paint colors! 

Remember to stick with neutral paint colors!

You also need to to make sure you clean up the outside of your home. The outside is going to give off the first impression, which means you need to cut back the shrubs and put away any lawn decorations.

It would also be a good idea to power wash your exterior and give your front door a fresh coat of paint! 

If you have any questions about the market or real estate in general, please feel free to give me a call or send me an email. I’m always happy to help! 

How Is the 2017 Market Doing So Far?

How are the Porter Ranch and San Fernando Valley real estate markets doing so far this year? Tune in for our market snapshot to find out. 

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Here is your market snapshot for Porter Ranch and the San Fernando Valley. 

We are two months into 2017 and our housing inventory is very low. Of course, we had low inventory in 2016, but look at these numbers: 

In January of 2017, there were only 47 properties for sale in all of the 91326 area code and only 45 for sale in zip code 91344. We have seen a good number of houses come on the market, but most of those are selling if they are priced appropriately. 

Since the beginning of the year, the number of homes for sale in 91326 has ranged from 35 to 41 out of 11,500 single family units. When you look at how many months of supply are actually on the market across the San Fernando Valley, you’ll see that most neighborhoods have between 1.5 to 2.2 months of inventory, which is really low. 

When you look at the actual number of active listings in the entire San Fernando Valley, you will see that there are about 2,300 properties for sale. In order to have an even market, we need 7,500 homes on the market. 

Homes that are priced correctly will sell quickly.

We have talked a number of times about why inventory is so low right now. Buyers are still out there in full force but they are not desperate. These buyers are willing to hold out if the house is not priced correctly. The homes that are priced properly and show well are the ones that get sold. 

Since home values have gone up so much over the last couple of years, buyers are much pickier. If your home is priced correctly though, you can still draw multiple offers and sell within one to two weeks. 

According to the California Association of Realtors, you can expect home values to increase between 3% and 5% over the next year. Based on the first two months of 2017, it looks like that prediction will happen. 

If you have any questions about our current market or about the home buying or selling process, give me a call or send me an email. I would be happy to help you!

Why Is a Living Trust So Important?

Having a living trust is an important topic. That's why I've brought in Michael Crupi of The Trust Pros to help me explain the benefits. 

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Why is it so important to make sure your home is in a living trust after you buy it? Today I'm joined by Michael Crupi from The Trust Pros to help me explain this topic.

As Michael says, when you get fire insurance, it insures against the potential hazard of your home burning down, but there's not a contingency built in for other types of hazard in your life, and that's where a living trust comes in. You want a living trust to have a plan to cover all other contingencies. Also, in the unlikely event that something happens to you and your spouse, you'll have a written plan that says exactly what will happen in the event of some other catastrophe. 

So what's the difference between a trust and a will? 

As Michael says, a will covers just one contingency, saying "If I die, here's where my stuff goes." A will also guarantees that your estate will be overseen by probate, meaning California courts will oversee your estate. They will send letters out asking if anybody wants to contest the will, and if anyone does, it can tie up your estate for years. Everything is public knowledge when you have a will. A living trust makes that all go away. 

With a living trust, estate transition is instant and private without any court intervention.

The transition of the estate to the beneficiaries is instant and private and there's no intervention by the courts, Michael added. In addition, there's a whole section of living trusts that covers other issues that a will doesn't cover. For example, a will has a power of attorney for financial, where you put someone in charge and say "If I get sick and I can't run my business, then my spouse will run it." Well, if your spouse is also sick, then you'll appoint someone else to run the business of your life and pay the expenses. 

There's also power of attorney for medical, where you make all decisions in advance and input that contingency, so that way, if your spouse is no longer here or incapacitated, you choose an alternate to that person. There's a whole component to a living trust that a will doesn't even touch on.

Thanks to Michael for joining us to talk about this very important topic. If you have any questions for him, you can reach him at 866-993-0299 or email him at MichaelCrupi@aol.com. He'll actually make a visit to your home!

As always, if you have any questions about the greater Los Angeles market or you're looking to buy or sell a home, you can always give me a call or send me an email. I'd love to help!

Breaking Down Mortgage & Lending Changes With Our Preferred Lender

There are a lot of changes surrounding the lending world as we head into 2017. I'm joined today by our team's preferred lender to discuss how these changes affect buyers and sellers in southern California.

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What does the mortgage interest rate look like as we start 2017? I'm joined today by our preferred lender Brandon Moss of Prime Lending to help me explain this topic more in depth.

As you probably know, interest rates have gone up over the last couple months and they're up to levels we haven't seen since 2014. While rates are higher than they've been in the past couple years, they are still historically low—in the 4% to 4.5% range depending on your down payment, credit score, and some other factors. 

The interesting thing, Brandon says, is an increase in interest in non-conforming products like ARMs (adjustable rate mortgages) that have a much lower starting rate for five, seven, or even 10 years, which helps keep monthly payments lower in a higher rate environment. Brandon added that these ARMs are not the same kind people had back in 2000—they are a much safer product that is harder to qualify for and requires more cash reserves in the bank before closing. They're solid products that are a good alternative for buyers to get into a home with a lower payment.

These ARMs are not the same kind people had back in 2000—they are a much safer product.

With prices going up here in the the southern California market, the federal government has raised the conforming loan limits for 2017. As Brandon points out, the nationwide standard conforming loan limit has risen from $417,000 up to $424,000. In higher cost areas like Los Angeles, Ventura County, and Orange County, loan limits have gone up from $625,000 to $634,000. This helps buyers get a loan without having to qualify for a jumbo loan, which comes with more restrictions and tougher guidelines. Buyers can actually get a larger loan amount going into 2017, and it's really opening up doors.

If you have any questions for Brandon, you can give him a call at (818) 256-4330 or shoot him an email at BMoss@PrimeLending.com.

If you have real estate questions, give us a call or send us an email. We look forward to hearing from you.

What Does 2017 Hold for Our Market?

Today, we're taking a look back at how buyers and sellers were affected in the 2016 market and looking ahead to how they might fare in this year's market.

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Happy New Year! Today, I wanted to take a look back at the market from 2016 and look ahead to predictions for what we will see from the Porter Ranch market in 2017.

This year, we saw a lot of price gain throughout California. Many neighborhoods in the San Fernando Valley saw values rise close to pre-recession levels. However, inventory was quite low throughout most of the year; 10% to 30% less than 2015 depending on the neighborhood. This really made 2016 the year of the seller.

The amount of sales actually decreased despite high demand, but that's because of the low inventory. There's also not many places to build new homes. The big issue for buyers now is making sure they can remain in the market with prices having gone up exponentially over the past few years and affordability dropping below 30% in our state.

We definitely want to keep an eye on interest rates in 2017.

These are things we'll need to keep an eye on this year, especially considering that toward the end of the year, interest rates increased by about 0.5%. This actually affects the amount of money buyers can afford to spend on a home. We even had a few instances in November where the buyer had to bring in more money because they didn't lock their rate in before the increase.

The Fed is expected to raise rates multiple times throughout 2017. If they do, it will obviously continue to affect the purchasing power of buyers. We're seeing that when many homeowners buy a new home, they keep their current property due to the fact that if they purchased in the last seven to eight years, there's a good chance they have an interest rate under 4% that they don't want to give up. This is more inventory that's not coming on the market. 

In 2017, interest rates will be the big thing to keep an eye on. Again, rates continuing to go up would slow down the market because it would affect buyers' purchasing power. Demand is still high and inventory is still very low. We'll certainly keep you updated on the market throughout the year.

If you have any questions about our market or you're thinking about buying or selling a Porter Ranch home, give me a call or send me an email. I'd be happy to help.