Are You Ready for the New TRID Changes this October?

Buying a San Fernando Valley  home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

There are going to be some big changes this year if you're looking to finance a home later this year. In order to discuss these changes, I've invited Brandon Moss with Prime Lending. 

The Consumer Finance Protection Board has instituted some changes that are going to change how buyers must go through the lending process. They have introduced a revamp of the disclosure process called the TILA-RESPA Integrated Disclosure. 

The Good Faith Estimate is being replaced by a form called the Loan Estimate, and the estimated HUD-1 Closing Settlement is being replaced by the Closer Disclosure. These forms are much more consumer-friendly, so it's a good thing for the consumer out there, but you need to be prepared ahead of time in order to reap the benefits.

There are some new rules and regulations at play, and one important one is that the new loan estimate must be issued three days after the initial application date. There is also a three day waiting period between when the closing disclosure is issued and the closing documents are drafted. In the past you could get a final approval on the loan the same day you applied, but now there is a three-day waiting period. 

This mean's that you'll need to take care of Homeowner's Association fees as well as insurance payments ahead of time in order to avoid delays in the closing process. 

If there are any interest rate changes or loan amount changes, your three day waiting period will start over, and this is why you need to be prepared up front.

If you have any questions regarding these new guidelines that will be affecting us on October 1st, 2015, please don't hesitate to contact me. I'd be happy to help you!

3 Things to Consider When Selling a Home with Contingencies

Buying a San Fernando Valley  home? Get a full home search,   
Selling your San Fernando Valley home?  Free Home Price Evaluation

A lot of buyers are out in Porter Ranch right now, and they're looking to purchase a home with contingencies. Today we are talking about the three most important things to remember when dealing with contingent offers. They are becoming more and more common here in California, so we want you to keep these three things in mind: 

1. Be flexible to the buyer's/seller's needs
Buying or selling a home is all about compromise, and being able to be flexible to each other's needs ensures a smooth and successful transaction.

2. You have to be committed to the process
You need to treat your home as a business decision, and be committed to selling for the long haul. Buyers don't want to buy from somebody who is not committed to selling, because they don't want the transaction to be slowed down by the owner.

3. Make sure you are prepared
You should have a good idea of what you want before the home comes on the market. This way when it does, you'll recognize it, and be ready to make an offer. 

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!

What Can You Expect in 2014?

I hope you had a happy New Year! Today I wanted to recap what happened in 2013 and also let you know what to expect in 2014. From the beginning of 2013 to about May, it was a feeding frenzy of multiple offers and skyrocketing prices due to the low inventory in the San Fernando Valley. In that five month period, there were only 1,700 properties for sale; towards the end of that run, there was less than one month of inventory and in some places, only 20 days of inventory. What completed the feeding frenzy was that interest rates were under 4%. From the beginning of 2012 to the end of 2013, most parts of the San Fernando Valley saw anywhere from 35-40% price increases.

In the middle to end of May 2013, we saw a jump in interest rates. This causes buyers to freeze what they were doing yet historically, interest rates were at all-time lows. Rates fluctuated in the fall and winter of 2013 before the Government announced they would no longer buy the bond cause rates to close the year at 4.5%

Looking towards 2014, we expect healthy gains and a more “normal” market if the interest rates rise slightly and hinder the buyer’s affordability. I do expect rates to be up slightly until the end of the year and into 1st quarter next year.  I don’t foresee significant increases in rates until sometime in 2015.  Much of this taper talk was more a question of what if and when. Also, now that the Feds said they will start the process in small increments, I think we know what to expect to some degree.

I still feel there should be a sense of urgency on the sellers part because if rates tick up even more, there will be a lot less buyers.  Not to mention, the guidelines seem to be tighten up further into 2014 making it tougher to qualify for a loan.  Prices could stall until the economy significantly improves.

Thank you for visiting my video blog! If you are a buyer, check out our free MLS property search and if you are interested in selling, check out our free home value report. Please call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com. Have a great day!

What Can You Do to Prepare Your Home for Sale?

Today I wanted to talk to you about what a seller can do to prepare their home for the market. The first and most important thing a seller can improve their home’s curb appeal. Simple tasks like fixing up the landscape, adding some flowers, new exterior and interior paint and replacing or cleaning carpet can add the wow factor to your home. These tasks may not cost a lot of money, but will provide more value with buyer emotionally. Depending on the home, we recommend hiring a stager for your listing. If your home is very large, it will help the buyer understand how to utilize the space of the home and visualize themselves living in it.

If you are interested in selling, check out our free home value report. Please call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com if you have any questions. Have a great day!

I Would Like to Welcome You to My New Video Blog!

Welcome to my video blog! My name is Scott Himelstein and I will be providing videos regarding real estate. Today, I wanted to talk to you about the current state of the San Fernando Valley real estate market. As 2013 draws to a close, the market still remains strong; inventory is still very low and most zip codes are under 65-75 properties on the market. The San Fernando Valley as a whole is seeing fewer than 2,000 single family units which is higher than April and May of this year. However, as sellers began to see prices rising, more homes started entering the market. The slight rise in interest rates caused sellers to back off slightly, but the buyer’s demand has remained strong and we are seeing multiple offers across the board.

Right now, we are still in a seller’s market. In order for the market to become neutral, the San Fernando Valley needs around 7,000 single family units and right now we only have 2,000. This has to do with interest rates being under 4.5% and the amount of first time buyers and investors on the market.

Thank you for visiting my video blog! If you are a buyer, check out our free MLS property search and if you are interested in selling, check out our free home value report. Please call me at (818) 720-9922 or email me at Scott@ScottWorks4u.com. Have a great day!