July 2017 - James Harvey Realty

Benefits of Home Owner’s Associations

Home Owner’s Associations sometimes get a bad reputation as being the neighborhood police of what you can and cannot do but they serve a vital purpose and have a lot of added benefits to neighborhoods that have them. Some are more strict than others but they all serve the same core functions. Most people prefer neighborhoods with HOAs in Orange County, C.A. because they protect the property values of their homes.

Amenities give value to the neighborhoods with HOAs. Pools, Tennis Courts, Club Houses, and Parks are all examples of areas that Home Owner’s Associations manage. Fees collected by the associations either monthly, quarterly, or yearly go to maintaining these areas. Some associations take care of lawn maintenance as well but this is normally in condo or townhouse communities.

Finances of the neighborhood are normally taken care of by the HOA. This means that reserves are there for improvements or emergencies that might come up in the future. Funds are normally handled by a management company that the neighborhood HOA hires to collect funds and manage monies for the association.

HOAs can bring a sense of pride and bonding to a community. Neighbors can bond through getting to know each other through the association. They can also be a buffer to help deal with each other when someone does not exactly have the best taste in lawn decoration or color scheme for exterior paint. When the rules are written down on what you can and cannot do to the exterior of your home and lawn, it can prevent neighborly disputes from happening in the first place.

Protecting and Increasing Home Value
Amenities
Funds for Improvements and Emergencies
Community Involvement
Neighbor Dispute Resolution
Regulations in Place

New Construction – Do’s and Don’t’s

The first thing you do need to do when you are thinking of building a home yourself is to get a real estate agent. They have relationships with trusted and qualified builders already. You need to be represented just as you do when you are buying or selling a home. Do background research on the builders that you are thinking about going with. Ask them for schedules of build times and for floor plans. Try to find out how organized they are. If it is a new neighborhood they are building out, try to pay attention to how professional they seem to be. Have your real estate agent tell you about them as a builder and their experiences with them in the past.

Make sure if you are building in a new neighborhood to remember that it can take several months between a contract to the closing table. Make sure that you don’t go out and buy a new car or change careers in between the time you are approved for a loan and closing. Your loan officer should advise you on this but just be aware that you will be approved for the loan but you have not closed on that house until you are at the closing table before you move in on your closing date. You could be structuring financing in a different way if you are buying land outside of a new neighborhood and building on your own but always make sure and check with your loan officer on any major financial decisions to make sure you are not jeopardizing the closing of your home. Make sure that you understand the expenses that are going to come along with the home over time. The property taxes, utilities, maintenance, and HOA fees are all costs to take into consideration.

Do play with floor plans. Start out by looking at what the builders have to offer in your price range. Don’t waste your time looking at floor plans that are way out of your price range. Don’t be afraid to ask a builder to customize a floor plan for you. Tell them what you don’t like about a floor plan and give them a chance to fix it or see if they can get one for you that works. Sometimes what they have put in front of you is not everything they can do.

If a builder has a model home somewhere, go and view it. Maybe they have a website to go do a virtual tour on or a local neighborhood they are building. It will give you a chance to view their work. Keep in mind that model homes often use parlor tricks like smaller furniture to make the rooms look larger etc. so when you are walking through the home, don’t pay too much attention to the décor and pay more attention to the detail of the building craft and floorplan.

When you are doing tours of the model homes or working with builders, always ask for a list of their pricing for the upgrades. Do you like the crown molding and double garage doors? How much is it? Don’t ever assume that extras are included because they are not most of the time. There is normally a basic starting price and then the extra pricing for the upgrades comes in. The model homes normally have all of the upgrades in them. When a builder gives you a price for a home, ask for a list of exactly what comes with that and that means everything down to what kind of flooring will be installed.

Pricing on new construction can be complicated. Something that you don’t want to do is to buy in a neighborhood that is priced way above homes of similar size in the area even if it is the same pricing as other homes in the same new neighborhood. This is another reason you should work with a real estate agent. They can tell you if the homes are being priced right for the area or if they are running comparables off of each other and you are going to lose money when the neighborhood sells out and settles in. Don’t buy the most expensive home in the neighborhood. You want to be in the mid to low end. That way you will be brought up if anything in value.

Do hire an inspector anyway. Most people think of home inspectors for resales. Your real estate agent will probably suggest that you hire a home inspector for new construction as well. They will find things just as they do with resales. You can have them come in during your walk-throughs to make you feel more at ease with the process of building. Most new construction comes with home warranties as well. Make sure that this is included in your purchase.

If you have any questions about new construction or building a home in the Huntington Beach area call James Harvey’s Team at 714-612-9535.

Technology and the Real Estate Market

As a real estate buyer or seller, are you aware of the tremendous number of technology platforms and information sources available and at your service? Consumers are tech savvy these days. Using a mobile device, tablet or home computer is second nature for many functions and needs, including those revolving around the real estate market – whether searching, buying or selling.

What You Get Out of Real Estate Technology

One benefit of online research is that buyers gain a clearer picture of the landscape or demographics of the neighborhood they’d like to move into. They can easily search Zillow or REALTOR.com® to find what they’re looking for and even set up a notification system. Using this technology, buyers also cut the Realtor® out of the search process for their ideal home. But as mentioned, inevitably they seek an agent to help finalize their deal.

Sellers also have an advantage in their search for market information in determining the potential value of their home prior to putting it on the market. Even though those numbers are not necessarily 100% accurate, the data does help provide a ballpark estimate and puts sellers in an advantageous position.

Then we have the various “for sale by owner” services. They seem like an attractive way for a seller to market a home and keep the commission. But invariably, these situations result in a disaster for the seller due to complicated issues that can arise from the sales process, and potential legal and paperwork involved. Those sellers end up calling the assistance of a qualified Realtor®/agent to unravel the problems.

By the same token, real estate professionals like James Harvey are also taking advantage of technology. In fact *93% of client communications is conducted through e-mail, with only 26% using the postal system. And 90% of those communications is done through a mobile device.

Keeping up with competitors is imperative, and James remains on top of leading edge technology and information so consumers benefit from accurate and timely responses to important questions as they navigate through (sometimes) complicated real estate process. At any given time, you might find James using one of the numerous on-line programs, news sources, business systems, or other options available for his ongoing and daily real estate business functions.

Can You Trust The Technology? Let’s get back to online search methods for a moment though.

How specialized, accurate, need-specific or recent is the information that’s available on any one of these consumer sites? For example, using a listing site, a buyer may finally find the home of his/her dreams, only to be disappointed because the (agent) contact information on the listing service is perhaps not that of the listing agent (and the background or credentials remain a mystery). Or, the home’s details are inaccurate or obsolete. And the final insult…the home is already in final stages of the sale. Now you have a frustrated buyer whose search begins from scratch – again. Likely using the same tactics.

On top of that, the mere magnitude of information available to the consumer often results in an overwhelming amount of data – to absorb and interpret. How can the buyer or seller decipher all that documentation and make sense of it? Ultimately, it’s up to the Realtor® to guide the consumer through the buying/selling process and to support them on this very emotional journey.

Keep in mind…information is only as accurate as the day it is published. Market facts change quickly. Who’s staying on top of those changes or possible market fluctuations on your behalf, and reporting back to you? Your reliable, trained and knowledgeable real estate professional, that’s who.

Why a Realtor® is Your Best Option

Those automated services don’t compare to a personal, face-to-face meeting or consultation with a live real estate professional. Agents are highly educated, with access to and use of trusted and accurate information sources at all times.

Realtors® like James Harvey for instance, know the markets and the buying/selling process inside and out. They know how to help you maneuver through any obstacle that may block your forward motion. They develop relevant and current market reports and advise you on trends that matter to you and your situation. They are the ones advising buyers and sellers based on personal and specific consumer needs, budgets and profiles.

…The business of moving from one home to another will always be a personal experience…

While technology evolves and has some advantages as a tool in the real estate industry for consumers and Realtors® alike, the business of moving (from one home to another) will always be a personal experience. An experience that can only be supported by a personal guide – to reduce or eliminate the stress or anxiety felt by both buyers and sellers.

James Harvey strives to stay on top of the fluctuating nature of the real estate industry and shares what he learns. His goal is to keep ahead of the technology curve, so you benefit from a position of knowledge that helps you make the best decision in your real estate journey.

Part of James’ strategy includes keeping clients, readers and contacts informed with clear, valuable statistics and facts through bi-monthly blog articles, social media posts and a website offering useful, advantageous information.

Even with all the technology available at his fingertips, ultimately James prefers a face-to-face meeting to a phone conversation or email. “There’s nothing like sitting with a concerned seller or buyer to discuss their particular needs and helping to set their mind at ease.”

And for that buyer or seller, they breathe a sigh of relief as a patient, savvy expert guides them through an ever-changing real estate market scene. The personal touch is one tried and true method helping James Harvey better serve the needs of his clients.

So when you have questions about the housing market, or you’re ready to reach out for help on your next purchase or sale of your home, contact James Harvey’s Team!

How To Increase Your Chances Of Qualifying For A Home Loan

Two things are happening right now in America regarding home ownership and lending. Interest rates are reasonable which is good news for people that need to qualify for a home loan but financing is also coming with some stricter rules. It is not impossible to get a home loan and you don’t need to have a perfect credit history but you do need to be aware of certain things.

The rules that are stricter are the policies that got the housing market in trouble before with the wild west lending practices and the no documentation loans in the past. Remember the days when people could walk into a loan office with a credit score of 720 or better and get a loan without any documentation? Those days will probably never be back but there are still some creative financing options out there.

If you are wanting to purchase a home, it is not the time for a major career change with a large change in income. Banks and lenders are going to look for a steady income for the past 2 years at least. Any change of employment is going to be fine as long as it is in the same field with the same type of income. It is not the right time to leave a steady W-2 Income job to start your own business with no proof that it is making any money yet. Basically, you want to make yourself look like a stable person for the past 2 years in every aspect of your financial and professional life.

Your credit rating means a lot when it comes to purchasing a home and financing part of the purchase. You will normally need to have a down payment for the home as well and you might want to speak with your real estate agent about down payment assistance programs available in your area. You should know your credit rating ahead of time. There are free services out there to help in which you can pull your free credit report and get suggestions to improve your score. Don’t wait until you are ready to purchase your home to look at your credit. There could be mistakes on your report that need to be fixed and that could take time to dispute.

Paying down debts can always improve your credit. You want to keep your debt to income ratio low. You also want to use less than 30% of your available credit. That is the magic percentage that lenders do not want to see you going over on your credit report. Paying bills on time without missed or late payments will also be another huge factor in whether you qualify for a home loan or not. There are circumstances in which late or missed payments can be explained by life events to creditors. It cannot be a continuous thing or it can damage your credit rating.

Saving money for a down payment is an important part of the home financing process. Depending on what your budget is, start planning and it might be a good idea to start a savings account for your down payment and put away funds each month to go towards your down payment. Increasing your income can always help improve your chances of home ownership and qualifying for a home loan. Taking a side job or getting extra hours. Anything extra that you can show you are earning to add to your income on a steady basis will help you pay off your debts.

Vacation Homes As Investments

Using vacation homes as investments can be a way to watch your money grow over the years if it is done the right way. Here are some simple tips to help you along the way to making the right choices in determining how to grow your real estate vacation home portfolio.

The location is the top factor is choosing prime vacation investment property. Houses can be renovated and even rebuilt, but the location of where they are cannot be changed. Look for high demand areas that are desirable locations for people going on vacation to draw in summer or winter vacation tenants. Year-round tenants are preferred if the weather in the area permits it. You might want to consider your time spent there as well. Some people chose to do a summer location so they can spend a few weeks in the fall at the home themselves or the winter.

Do your research on the area you are interested in purchasing your vacation home. If it is in Huntington Beach, California. Look up vacation rentals in Orange County to see what they are renting for comparable to the home you are interested in. A licensed real estate agent can help you do the research and tell you what kind of rental price you will be able to get for the home by comparing it to other rentals in the area. Find local attractions in the area as well. Figure out how close you are to them and what the local towns offer.

Numbers are everything in the property management business. Vacation rentals can be a little trickier since you are dealing with different seasons. It is best to have an experienced broker run the numbers for you to help you determine what the property will bring in rental prices at different times of the year. You will need to calculate your mortgage, fees, maintenance, and other necessary costs in managing the property into those numbers to get a clear picture of the profit. You don’t want to move forward unless there is clearly a profit and it can be proven in the numbers with real data.

The decision on whether to hire a property management company is a personal preference just as whether to hire a real estate agent to sell your home or not is. The idea is basically the same. If you are not in property management and you don’t have much experience with it, then you probably should not be doing it. Why take on the unnecessary stress if it is not needed? Homes that have management companies rent for more, stay occupied more and have happier owners. Find a local and reputable company to manage your home. They probably already have a database of trusted vacation renters to that area and it will mean that someone else can handle the check-ins and issues while you collect the profits.

Once you have purchased your first property, spend a few days there yourself. You don’t have to make it perfect, but try to make it comfortable with the basics of what someone would need. Give the home a good cleaning and maybe an artistic touch if you can. You want people to enjoy their stay and to keep coming back to your property for their vacations.