Long Beach, CA Real Estate Podcast with Melinda Elmer

What an Escalation Clause Can Do for You

melinda.elmer@gmail.com (Melinda Elmer) — Fri, 26 Mar 2021 13:14:00 -0700

Here’s how escalation clauses help homebuyers in our market.

An escalation clause is a popular tool being used right now to help buyers get

their offers accepted. What is an escalation clause?

In a multiple-offer environment, it’s sometimes hard to know how to price your offer. You might be willing to go higher than the next buyer, but you don’t even know where to start. Thus, buyers oftentimes make their best guess as to where they think other offers might be. An escalation clause allows you to increase your offer to beat the next highest offer.

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You’ll have to carefully weigh

whether this is the right option for you based on the situation.

”

Escalation clauses should be used judiciously because there obviously may be a price you simply can’t afford. You’ll have to carefully weigh whether this is the right option for you based on the situation. Sometimes, you can put a cap on your escalation clause that states you’re willing to pay x amount of dollars higher than the next highest offer up to a certain point. If you don’t put a cap on your escalation clause and the price goes too high, you can always withdraw your offer as well.

If you have questions about how to utilize this tool or know someone who could benefit from it, give me a call. I’d love to speak with you.

How to Get an Offer Accepted in This Competitive Market

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 11 Mar 2021 07:00:00 -0800

Here’s what we do to help buyers win in this strong seller’s market.

In a competitive seller’s market like this, things can be tough for buyers. With most condos and homes garnering multiple offers these days, they’re frustrated about not having theirs accepted. We’ve seen as many as 50 offers come in for some single-family homes.

There are a number of things we do upfront with our buyers to put them in the strongest position possible. The first thing we do is make sure they’re getting all of their documentation to a local lender who’s going to give them the best service (and interest rate) possible. We have several preferred lenders we trust and are happy to recommend to our clients.

Once all the documentation is in and verified, we get the pre-approval. We can feel safer removing the loan contingency when we make an offer because everything has been checked off by the lender.

Obviously, one of the big issues for sellers is price. That’s why we make sure not to max out our clients’ budget when making offers. We generally back off the top-end price of what our buyers are approved for because homes in this market are seeing offers anywhere from 16% up to 50% above list price. We give our buyers the room to go up a little bit in price and be competitive in this crazy market.

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We’ve seen as many as 50 offers

come in for some single-family homes.

”

With that being said, one other strategy we like to use with our buyers is the strength of their down payment. Unfortunately, an offer with only 3% or 5% down can make you a much weaker buyer. There are options we can look at to get you the cash to support a larger down payment and a stronger offer, depending on your situation.

One additional problem buyers have to deal with is low appraisals. Sellers want to know that they’ll still get the agreed-upon sale price even if the appraisal comes in low. They also want to know that you will still pay the price even if your lender won’t foot the entire bill. Ultimately, a property is worth what a buyer is willing to pay and what a seller is willing to sell for.

Finally, we make sure our buyers have nice, clean offers. We contact the listing agent to ask what’s important to their client in an offer. Often, we end up buying properties as is. In addition, the sellers may need to rent the property back for a time after closing until they find their new home in this competitive market.

If you have any questions about how we help buyers win in this market or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

A Great Way to Get Into Real Estate Investment

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 25 Feb 2021 07:00:00 -0800

As a first-time real estate investor, consider buying a multifamily property.

If you’re interested in owning real estate as an investment, you know that the market is very competitive in Southern California pretty much all the time. It's very competitive right now, but even before 2020, the last decade or so was the same story.

The market is extremely competitive for single-family homes in particular. There is very little inventory, and what does come on the market is generally seized after 20, 30, or even 40 offers have been submitted. The good news is, there are alternative options you can consider. Multifamily properties can be a great way to get started in real estate investment because that market is less competitive.

“

The bottom line is that this

is a great way to get into

real estate investing.

”

Even better, if you’re a first-time buyer or perhaps selling a condo and moving into a multifamily property, you can put less money down to buy a multifamily property and live there for several years. After two or three years have passed, you can go ahead and buy a single-family home and live in it. Meanwhile, you’ll still have that multifamily property you can then rent out for the long term. Now that you’ve established rental history, you’ll get a better interest rate and more favorable qualifications when the time comes to buy your next property. On top of that, you’ll have all that extra income coming from that multifamily property.

You may have to compete against other offers to win the multifamily property you want, but we’re only seeing as many as two or three other offers in these situations—not the 20, 30, or 40 we see for single-family homes. The bottom line is that this is a great way to get into real estate investing.

As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m happy to help.

A Strong Market Grows Stronger in 2021

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 28 Jan 2021 07:00:00 -0800

Here’s a quick market forecast for the rest of 2021.

With all the eviction moratoriums ending this January (UPDATE: This has been

extended five more months at least!) and foreclosures dominating the news

cycle, a lot of people are wondering if our 2021 real estate market will soon fall

apart. I can only speak to what’s happening in Southern California, and in our

area, we continue to see a lack of supply and high demand for homes.

In fact, with record-low interest rates hovering around 3%, demand is extremely

high. On top of that, many apartment and condo residents are looking to move

into bigger homes because they want more space.

As we look ahead to the rest of 2021, I predict that we’ll continue to see a

strong housing market well into the year. One thing capable of changing that,

though, is interest rates, but they’re expected to remain low for the time being,

so I don’t see our level of demand changing.

Another factor that can affect our market is supply. Over the past year (and

even in previous years), we’ve maintained an inventory supply between two

and 2.5 months. Even as the market tightened up once COVID hit, inventory

stayed around two months. The really good news is that in December, which

is traditionally thought of as a slower month, we still had 900 homes listed in

the Long Beach area alone.

“

I predict that we’ll continue to see a strong housing

market well into the year.

”

As you can imagine, many people who are looking for homes are wondering

where they’ve all gone. Our average days on market is just 10 days, which

means homes are selling quickly and often with multiple offers. This is all

reflected in the record-high prices we’re seeing in our area. In fact, the average

sale price in Long Beach last December—again, traditionally considered a

slower month—was $740,000. The average sale price across the entire

Southern California region was $873,000.

Prices have reached an all-time high, and I predict they’ll continue to rise

throughout 2021 as long as interest rates stay low. That said, homeowners

who are struggling with their mortgage payments can sell and take significant

equity with them for the near future.

If you’re considering making a move or have any questions about our Southern

California market, don’t hesitate to reach out to me. I’d love to hear from you.

Why Do We Recommend a Pre-Sale Inspection?

melinda.elmer@gmail.com (Melinda Elmer) — Tue, 5 Jan 2021 14:10:00 -0800

Here’s how a pre-sale inspection can greatly benefit a home seller.

This past year, we assisted a client who had sold their home but found out during escrow that its entire foundation needed to be replaced. We had no choice but to start all over and completely change our strategy; we did end up selling the property, but at a significantly reduced price, unfortunately. In light of that situation, we’ve become more adamant proponents of the pre-sale property inspection. With this proactive approach, sellers can avoid sale-altering surprises that force them to leave thousands of dollars on the table. The last thing you want is to deal with the headache of having to redirect your course, especially in a competitive market like ours.

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Don’t get nickel-and-dimed in the negotiations under contract.

”

Knowledge is power, and a pre-sale inspection allows our sellers to solidify their strong position heading into negotiations. Oftentimes in multiple-offer situations, the buyers will know that they can come back later to potentially renegotiate for a reduced price, credits, repairs, or additional monies. With a pre-sale inspection, we take some of that leverage back; we can hand the buyers a report and basically say, “Here’s everything that’s going on with the property.” It’s not far-fetched to assume that you as the seller could be unaware of serious issues affecting your own home—you likely don’t crawl underneath your house or check behind the drywall on a regular basis. The ability to pre-negotiate all those repairs up front as opposed to renegotiating them at a later point could potentially save you thousands of dollars.

Don’t subject yourself to all the back-and-forth rigamarole and irritating nickel-and-diming that comes with negotiating repairs under contract; inspect your property prior to putting it on the market. If you want to take advantage of this strategy or have any questions that pertain to buying or selling real estate, feel free to give us a call. We’ll be happy to go into greater detail about how pre-sale inspections can save you tons of money, mitigate uncertainty, and reduce your stress levels. We look forward to hearing from you.

What Should CA Homeowners Know About Prop. 19?

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 10 Dec 2020 14:08:00 -0800

Here’s what Californians need to know about the recently passed Prop. 19.

Several significant changes have been brought about by Proposition 19, and a lot of people don’t have a firm understanding of them yet. Today I’m explaining the good, the bad, and the ugly of Prop. 19 so that everybody is up to speed and can move forward with the same expectations.

Let’s start with some of the great things about it. As of April 1, 2021, those who are over the age of 55 will be able to move anywhere in the state of California and take their property tax base with them. In the past, you’d only be allowed to do this once, and you could only move to certain counties. Now, you’ll be able to move up to three times and still carry your property tax base with you.

The best part is that you don’t necessarily have to move to a property that’s of lesser value than the one you own now; if you buy a more expensive property, your property tax base will be prorated above your current price. That’s great news for a lot of Californians, as it gives them much more flexibility in the market. In addition to individuals 55 years and up, people who are severely disabled and those who have been victims of wildfires can also qualify.

Here’s another big change: You can no longer inherit property that was not a primary residence and rent it out while keeping the previous owner’s tax base. The old tax laws stated that if you inherited a property from a parent, you could fill out the paperwork to get an exemption—either a parent-child or grandparent-grandchild exemption—allowing you to continue the same tax base that your family member enjoyed. So, if they were only paying $1,000 in annual property taxes back in 1972, then that’s the base you’d enjoy, too, regardless of whether or not it was a primary residence.

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You can no longer inherit property that was not a primary residence and rent it out while keeping the previous owner’s tax base.

”

However, on February 15, 2021, the new rule regarding inheritance takes effect: The only way you’ll have the same tax base as your parents or grandparents is if you inherited their primary residence and it became your primary residence. If it becomes a rental property, or if your parents held it as a rental property, you’ll no longer qualify for that lower tax base; you would be reassessed at the new value, which, for a lot of people, is a pretty significant number.

There are some ways to start planning around these Prop. 19 changes, so I recommend talking to your tax advisor, financial planner, or estate planning attorney. One of the most obvious ways to avoid the new limitations for inheriting a property tax base is to simply transfer that property to your child before February 1, but of course, there are some ramifications with that as well.

Feel free to give me a call or send an email, and I’d be happy to explain it all in more detail as it pertains to your particular scenario. As always, I’m here to be a resource for your real estate needs. I hope you found today’s blog helpful; please share it with any friends or family who would be interested in this topic.

Thank You for Making Our Year a Special One

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 10 Dec 2020 14:00:00 -0800

On behalf of the entire Elmer Team, thank you and happy holidays!

For today’s message, I simply want to share some warm holiday wishes and express our gratitude for the support you’ve shown the Elmer Team. Obviously, it’s been a year like no other. We’ve been enduring a pandemic and all sorts of other newsworthy events, and while it’s easy to focus on the negative, we’d rather celebrate this holiday season by reflecting on everything we’re thankful for. We’ve been able to do a lot this year to help those in our community while also donating to many great charities nationwide, but that wouldn’t have been possible without the trust you’ve placed in us. We hope that our contributions will help make a difference for those in need.

As always, if you have any questions we can answer or real estate needs we can assist you with, we’d love to hear from you. We’re here and ready to help; just give us a call or send an email. We wish you and yours happy, healthy, and meaningful holidays. Here's to hoping for a much less interesting 2021!

Happy Thanksgiving

melinda.elmer@gmail.com (Melinda Elmer) — Tue, 17 Nov 2020 15:20:00 -0800

Here’s what we’re grateful for this Thanksgiving.

This time of year is always a prime opportunity to reflect on what we’re grateful for, and this year—with all of the curveballs life has thrown us—there’s nothing my team and I are more thankful for than you. For all your support, loyalty, and referrals over the past 18 years, we appreciate it from the bottom of our hearts. We wish you a happy Thanksgiving and holiday season, and we hope you stay safe and healthy.

As always, if there’s anything we can help you with, real estate or otherwise, don’t hesitate to reach out to us. We’re here to serve, and we’d love to hear from you!

What You Need to Know About Your Property Tax Bill

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 5 Nov 2020 14:23:00 -0800

Here are a few tips to keep in mind as you read your property tax bill.

Many people tend to have a lot of questions this time of year regarding their tax bills, so today I’ll share what you need to know about the bill and your property taxes in general.

My property tax bill says “Information Only” on it in bold print because my property taxes are impounded in my mortgage payment, meaning they’re paid directly from the mortgage servicer. If yours doesn’t have that, it will read “Bill,” and you’ll need to make sure to pay it on time.

If you are billed directly from the county, you can go online to pay it. You can pay all of your property taxes either up front or annually. The due dates are December 10 and April 10; don’t wait until the last second to pay it though, because if it’s late, you’ll incur a late fee.

You can also enroll in a property tax management system. If you own more than one property, visit your county’s tax website to set up notices on what address your bills are sent to and what your payments are.

LA County Property Tax Management System

Orange County Property Tax Management System

If you do have your property taxes impounded as I do and you have questions about your impound amount on them—maybe they’re not matching up or it seems like you have a shortage—don’t call the property tax collector at the county. Instead, call your mortgage servicer. If things have changed, send your tax bill to your lender so they can adjust your impounds so that you don’t have big adjustments to make down the line.

After an election, new taxes can sometimes be added to your tax bill, which is where some of those adjustments will take place. That’s why it’s important to check that against your impound account and understand that if you're late or short on your property tax bill, the collector has a limited ability to cancel penalties. Make sure you do everything you can to pay them on time.

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If you have questions about your impounded property taxes, call your mortgage servicer, not your tax collector.

”

Also, don’t ignore supplemental secured property tax bills. These are typically received after you purchase a new property, and it takes a while for the county to reassess the new tax amount. If your taxes are impounded, you’ll notice that the amount that’s paid by the lender is higher than what is sent to the county for the first payment. If that happens, you’ll get the supplemental tax bill which adjusts your taxes to the new purchase price amount.

The only exception to that would be in the case that the previous owner of the home owed money or bought the house for more than what you purchased the home for. In that case, they would adjust the taxes down. That’s very rare in today’s market, but when they do come, most lenders aren’t going to pay them; they usually have a surplus in the escrow account that you can ask to be refunded to you so you can use that money to pay your supplemental tax bill. You’ll just have to work with the lender to make sure that you have enough for your next tax bill cycle.

If you have any other questions about the supplement tax bill or making your tax payments, please reach out to me. I’m happy to help.

Q: What’s Going on in Our Market?

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 24 Sep 2020 09:03:00 -0700

Here is what has been happening in our housing market lately.

What are the latest numbers from our local market? Despite all the uncertainty in the world right now, there is some positive news when it comes to real estate:

Right now, our area’s single-family home prices are up by an average of 19.5% year over year. Townhouse and condo prices rose by 12.7% over the last year. These are incredible gains.

Interest rates remain steady between 2.85% and 3% depending on your credit, what kind of loan you’re getting, and the down payment.

In August, we had 272 pending sales and 600 active listings in the Long Beach area alone, which is two months of supply. Typically, August and September are months where we’ve had a lot of leftover inventory from the summer, but since we had slower months during the usual beginning of the selling season, we’re seeing that carry through into the fall. We also usually have somewhere between 700 and 800 homes on the market during this time, which shows us that inventory is very low.

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All in all, our market is very strong.

”

The average days on market is only nine days. That means if a property has been on the market for much more than a week, the seller was maybe a little too aggressive with their pricing and should come down a bit. Additionally, 377 new listings came on the market last month and in the last two weeks alone, 103 new listings came onto it. Of those, 55 went pending.

All in all, our market is very strong. If you’re thinking about making a move, now is a great time to do so.

Feel free to reach out to us with any questions you have! We’d love to help you.

Q: Do You Know About the Homeowners Tax Exemption?

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 10 Sep 2020 11:19:00 -0700

This exemption will save you about $7,000 on your property taxes.

I recently had a client call and ask me about the homeowners exemption on their property taxes. It turns out that they had not filled out the form and sent it back into the county, so they wouldn’t receive the exemption until they did.

When you purchase a home, you'll get a letter in the mail from the county that asks you if your home is your primary residence. It’s really important that you mail this card back in because then you will get a $7,000 exemption on your property taxes. You only have to fill this form out once while you own your home.

Ultimately, this ends up saving you about $70 per year. It may not seem like a lot, but it adds up over time. To get this exemption, you need to send in the form. If you haven’t sent it in or you’re not sure if you did, take a look at your property tax bill. If you have any other questions, I’d be happy to help you.

If you find that you do need to fill out your homeowners exemption, I’ve included the forms for you here for L.A. and Orange counties:

L.A. County

Orange County

If you have any other questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Have You Ever Heard of Recasting?

melinda.elmer@gmail.com (Melinda Elmer) — Tue, 18 Aug 2020 07:00:00 -0700

Here’s a little secret that could help you save big.

Given the ongoing health crisis and our tight housing market, we have a lot of clients who are ready to make a move but don’t want people tromping through their home while they’re still living there. For these folks who would prefer to move out first, we have a solution: recasting.

In the past, there used to be something called a bridge loan, which allowed you to move into a new home and then sell your old one. For the most part, these loans disappeared back in 2007 and 2008. Recasting, however, is still an option, but lenders don’t really want to talk about it because, frankly, it’s not in their best financial interest.

You can refinance and pay roughly $5,000 in associated fees, or you can keep your current rate and terms and buy down your mortgage with a large lump sum. Here’s how this works:

Let’s say you want to move from one house to the next but don’t want people coming in and out, whether you’re concerned about COVID, have too much stuff lying around, or any other reason. Ideally, you want to be able to move first. Recasting allows you to qualify for both mortgages and purchase the new home with a minimal down payment (5% or maybe even 3.5% down). You will, however, have to use conventional financing; this option doesn’t work for FHA or VA loans.

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You’ll keep the low interest rate and current terms—you don’t have to start over.

”

After you move into your new home, we’ll get your other one on the market and sell it. Presumably, you’ll have a lump sum of equity coming from that other sale; recasting allows you to put this sum toward your next mortgage and pay it off.

The good news is that you’ll keep the low interest rate and current terms—you don’t have to start over. Also, you’ll only be paying a small fee to recast. This option makes the process simpler and a lot less expensive.

So, if you know somebody who’d like to take advantage of this great product, feel free to give me a call. I’m more than happy to explain it in greater detail and field any questions you may have. As always, if you have any other real estate-related questions or needs, don’t hesitate to reach out. I’m here to be a resource for you.

4 Home Improvements With a Great ROI

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 30 Jul 2020 13:48:00 -0700

What can you do around the house to prepare your home for an upcoming sale?

If you’re like many Americans, you’re probably getting (too) used to spending time around the house. Well, if you’re planning to sell your home, this might be a good time to take advantage and prep your house for the market. Here are four simple home improvements that will bring a great return on your investment when you sell:

1. Decluttering. Go through the sundry items you have laying around: If you haven’t used something in a long time and don’t plan to soon, get rid of it by donating it or tossing it out. This will help simplify your upcoming move on top of increasing your return on investment.

2. Painting. If you have peeling paint on the exterior of your home, scuff marks on the interior walls, or visible nail holes, take advantage of the time you have at home to do some quick touch-ups.

3. Gardening and landscaping. Not only would it be good for you to get outside for some vitamin D, but sprucing up your landscaping would also help make your home look better and give you a higher return on investment.

4. Deep cleaning. Clean those baseboards and other often-neglected spaces like those underneath the refrigerator, furniture, and cabinetry.

If you have any questions about preparing your home to sell or what’s happening in the market during these crazy times, feel free to reach out to me. I’d be happy to answer your questions and help you put together a plan for your upcoming sale.

To Sell or Not to Sell

melinda.elmer@gmail.com (Melinda Elmer) — Fri, 17 Jul 2020 09:33:00 -0700

Sellers: Now is a great time to put your home on the market.

What opportunities are there for sellers right now? Here’s what you need to know about our current market.

First, interest rates are as low as they’ve ever been, and these low rates are driving a ton of motivated, qualified buyers to the market. Additionally, inventory is as low as it’s been in a long time. These two factors are ramping up competition among buyers for the limited number of homes for sale and increasing prices.

So if you are considering a move—whether that means upsizing, moving out of state, or cashing out—it’s a great time to sell. We’re seeing high demand for homes in the $500,000 to $850,000 price range. We even had a home that received 50 offers recently! If you plan on upsizing into the higher-end price ranges, the good news is that there is more inventory to choose from above the $1 million price point.

“

Interest rates are as low as they’ve ever been, and these low rates are driving a ton of motivated, qualified

buyers to the market.
”

That being said, there are certain precautions you still need to take while listing your home to maintain your health and safety due to the coronavirus. For example, if you have to buy and sell, our team allows you to recast your loan, wherein you can buy your next home and move into it without having to sell your current one. This way, your original home can be vacant when you put it on the market.

This option doesn’t work for everyone, though, so if you have to live in your current home while putting it on the market, we implement several preventative measures. First, we ensure that all buyers who enter your home are pre-approved. They also need to sign an agreement that verifies their health and prevents them from entering the home if they’ve been around anyone who has COVID-19. Lastly, anyone who attends a showing must wear masks and gloves and use hand sanitizer. In between showings, anything that was touched inside the home gets sanitized.

If you have more questions about our market or you’re ready to sell your home for top dollar right now, don’t hesitate to reach out to me. I’d be happy to help.

Q: Which 3 DIY Projects Will Liven Up Your Property This Summer?

melinda.elmer@gmail.com (Melinda Elmer) — Wed, 1 Jul 2020 12:43:00 -0700

Here are some DIY projects to tackle while you’re stuck at home.

So many of us have been stuck in our homes for the past couple of months, and it looks like that will continue for the rest of the summer, even as things start to reopen. If you’ve been getting cabin fever, it might be a good idea to liven up your space by embarking on some DIY home improvement projects.

This article from Forbes has a detailed list of projects for all experience levels, but three in particular stood out to me:

1. Closet makeover. So many of us have either cleaned our closets out or stuffed them to the brim. If your closet needs to be spruced up, The Container Store’s Elfa system allows you to enter your closet’s dimensions and customize it with shelving, bars, drawers, and more. Once you have the design down, you can order what you need from their store and have it shipped directly to your home. If you don’t know where to start on your design, I'd be happy to refer you to a designer I know at the Container Store.

“

If you’ve been getting cabin fever, it might be a good idea to liven up your space by embarking on some DIY home improvement projects.

”

2. Swap out dated hardware. This requires little to no handiness and can be completed in just a few minutes. If the knobs in your bathroom or pulls in your kitchen drawers are outdated, websites like Build.com have tons of different hardware and all sorts of metals, colors, sizes, and finishes. Adding designer knobs and pulls is easy, and it’s a simple way to upgrade inexpensive furniture.

3. Transform a room with paint. Obviously, there are a ton of different traditional paint colors you can choose from, but I found an interesting limewash paint from Portola that’s unique in that it can be applied over many surfaces ranging from stucco to drywall to brick. It can even be applied on cement. It can give a room a sophisticated look that’s reminiscent of a Mediterranean hotel. It also gives you color variations that you can’t get with traditional paint. Again, this is a simple and inexpensive way to completely transform a room.

If you’d like more ideas for DIY home projects, don’t hesitate to reach out to me by phone or email. I’d be happy to share what some of my clients have done to their homes and how you can repeat the process. I look forward to hearing from you.

Q: How Is Our Market These Days?

melinda.elmer@gmail.com (Melinda Elmer) — Wed, 17 Jun 2020 07:17:00 -0700

These are the essential stats for our current real estate market.

Today I wanted to share a brief market update since there are so many things happening in the world right now and people are concerned with how the real estate market is being affected. One question I receive frequently is whether it’s currently a good time to buy or sell. In June, we’ve been seeing signs that people are ready to get back out there and either buy or sell a home.

Pre-pandemic, we would generally see, on average, about 300 sales per month in our area. In the last couple of months, we were only seeing about half that number of sales. However, we’ve been seeing more and more closings over the last 30 days.

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If you’re considering selling your home, it’s a wonderful time to do so.

”

The real difference in the past month has been the 349 pending sales. So in the next 30 days, we’ll see that number reflected in the number of closed sales. The most crucial statistic is that there are currently only 447 houses active on the market, which means if no other properties are listed, our inventory will be gone in about 30 days.

So, if you’re considering selling your home, it’s a wonderful time to do so due to the low inventory. If you’re thinking about buying a house, it’s also an excellent time because interest rates are extremely low. However, be prepared to compete over the property you want to buy.

If you have questions about whether now is the right time for you to make a move or anything else concerning real estate, give us a call or send an email. We would love to help you.

Will Housing Prices Fall Soon?

melinda.elmer@gmail.com (Melinda Elmer) — Wed, 6 May 2020 10:13:00 -0700

A shift into a buyer’s market is possible, but here’s why it isn’t very likely.

Many people have asked whether the coronavirus will be the event that finally brings housing prices down in Southern California, and while none of us have a crystal ball, there are a couple of really basic things we’re seeing that will shed light on this issue.

First of all, back in 2007, we had a very different lending environment from what we see today. Basically, if you could walk, talk, or breathe, you got approved for a loan in 2007—there were really no qualifications. People were 100% leveraged against their homes after having to borrow everything to buy their homes and had zero equity. Sometimes, folks took out second, third, and even fourth loans just to be able to buy a property.

Those kinds of loans do not exist today, and loan requirements have become much more stringent. We’re simply not seeing risky lending practices, and almost everyone today has some level of equity in their homes. Rather than go into foreclosure, many people can simply sell their homes and end up with a big check.

That being said, the current crisis is different in that we’re seeing an overwhelming amount of people laid off or furloughed as many businesses are forced to close their doors. This is obviously tragic and hard for us to stomach, but the good news for the housing market is that we’d have to see a significant amount of people coming to the market before we experienced a dramatic shift.

That brings me to the second reason I believe the market is going to remain fairly strong: Sellers who don’t necessarily need to sell still have the luxury of declining the lower-end offers, and can simply take their homes off the market if they so choose.

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We’d have to see a significant amount of people coming to the market before we experienced a dramatic shift.

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Right now in Los Angeles County, we have 11,387 homes for sale, and in Orange County, there are 5,179. Last month, 3,389 homes sold in LA County and 1,667 homes sold in Orange County. This equates to a 2.2-month supply of homes in LA County and a 2.1-month supply in Orange County—a definite seller’s market (a balanced market occurs when there’s a three- to five-month supply of homes for sale, and a buyer’s market is considered anything from six months and up).

That means we’d have to have three times the amount of current for-sale homes come onto the market in order for it to shift so dramatically that we’d end up in a buyer’s market. Unless we see such a massive flood of homes coming onto the market, I don’t believe we’ll see a drop in prices. In fact, the average sale price in LA County has gone up 5.8% year over year, and 8.4% in Orange County. Real estate is still a solid investment.

If you’re still questioning whether you should sell in today’s market, please give us a call or send an email. We’re still hard at work during these odd times, and we’re here to help.

Mortgage Forbearances in the Wake of COVID-19

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 9 Apr 2020 13:26:00 -0700

Are you having trouble paying your mortgage? You may need a mortgage forbearance.

With so many employees being laid off or furloughed in the wake of the coronavirus pandemic, homeowners who can’t pay their mortgage are looking at their options. The same goes for renters who can’t cover their rent. Today I’ll shine a light on a few of those options.

The first is mortgage forbearance. Mortgage forbearance is a period where you don’t have to make any mortgage payments. However, it doesn't mean you won’t owe that money. You’ll still have to pay that amount eventually, so if you can still make your mortgage payments, I recommend doing so.

In many cases, banks move those suspended payments to the end of the life of the mortgage, which means you’ll pay more in interest in the long run. If you’re unsure whether a mortgage forbearance is right for you, just give your lender a call and talk it over with them.

If you don’t see yourself getting back on your feet anytime soon, call me so we can discuss your other options. Many homeowners have lots of equity in their homes, so we can also explore alternatives like selling or renting out your home.

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If you can still make your mortgage payments, I recommend doing so.

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If you’re a renter, the same principle applies: If you can make your payments, go ahead and do so, because that amount due isn’t going away. Some landlords may cut you a break and offer one month of free residency, but in most cases, they need that money to make their mortgage payments or pay their living expenses.

Whether you’re unable to pay rent or have tenants who can’t pay rent, those payments usually have to be repaid within the next six months. If you’re the landlord in this case, work with your tenants to see how they can make their payments. If they absolutely can’t, and you depend on that money to pay your mortgage, talk to your mortgage servicer and explain your situation. They know many people are going through a similar situation, and they’ll be willing to work with you. Your tenants may be able to make their payments once they get back to work, so get creative and find a solution that works best for all.

As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m happy to help.

Q: How Can I Get the Best ROI When Selling?

melinda.elmer@gmail.com (Melinda Elmer) — Mon, 9 Mar 2020 06:45:00 -0700

Here’s how you can maximize your ROI on a home sale.

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Recently, I’ve had a number of properties that were in some serious need of repairs. These homeowners all asked me what they needed to do to get their homes sold for top dollar.

In most cases, when a seller hasn’t been able to maintain or update their property, they can benefit more from making it look clean, neat, and fresh as opposed to making expensive updates or repairs.

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Kitchen and bathroom remodels are only going to get you 60% to 80% of your money back.

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Something as simple as a fresh coat of paint or new carpet can make a huge difference. Decluttering, depersonalizing, and simplifying what’s in the home to open up the space and make it look as nice as possible will help without spending significant money to do repairs. Many studies have shown that kitchen and bathroom remodels are only going to get you 60% to 80% of your ROI, and that’s a lot of work to put into a property.

I recently sold a property with a bad roof that needed to be completely replaced because it was a rental for 30 years. We were able to get 30 offers for this home without completing any additional work.

We've also sold homes that were in fine condition but were a little dated. Instead of spending money on repairs that you won’t see a return on, cleaning and decluttering is how you maximize the sale price in most cases.

Others may say you need to do a lot of staging and bring in extra furniture, and in some cases that's appropriate. However, for the majority of homes, you can use what's already there for staging.

If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Get Rich in Real Estate

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 20 Feb 2020 13:45:00 -0800

I’m sharing all the details about our upcoming “How to Retire Rich in Real Estate” workshop!

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I’m inviting you to an upcoming “How to Retire Rich in Real Estate” workshop. On Saturday, March 14, at 10 a.m. we’re hosting this workshop with my broker Neil Schwartz, who has been in the business for over 40 years. He’ll share some of the wonderful investment tips and strategies he implements with his agents and clients. This workshop will help you learn how to retire rich in real estate.

The event is at my office: 5150 E Pacific Coast Hwy Ste 770 Long Beach, CA 90804. When you arrive, you can park either on the surface lot or on the street, then head up to the seventh floor. We’ll have light drinks and other refreshments. We look forward to seeing you there!

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Come learn how to invest and retire rich in real estate!

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Please feel free to forward or share this with friends who may be interested in investing in real estate. You don’t want to miss this! Click here to RSVP!

If you have any questions about this event or real estate in general, please call or email me. I would love to speak with you.

What You Can Gain by Cleaning Your Solar Panels

melinda.elmer@gmail.com (Melinda Elmer) — Mon, 3 Feb 2020 11:43:00 -0800

If you’re like me, you probably didn’t realize that you have to clean your solar panels now and then. Here’s why it’s important to do so, though.

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Today I’m sharing the importance of cleaning and maintaining your solar panels. I thought that when I got my solar panels, all I had to do was install them, then go about my daily life without a worry!

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The cleaning process doesn’t have to be too complex, and the result is worth it!

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However, I recently found that if you clean your solar panels regularly, you can get up to 12% to 15% more output from them. Obviously, rain does help wash them off, but if there’s a lot of bird droppings, mushy leaves, dust, grime, or even ash, your panels will require a deeper clean than what Mother Nature can provide.

The cleaning process doesn’t have to be too complex. A garden hose and a soft brush usually suffice, but if your panels are at a difficult-to-reach angle, you can play it safe and call a professional solar panel cleaning company to do the job for you.

Sure, it’s one more thing added to your to-do list, but that considerable increase in energy efficiency is well worth the effort. If you have questions about this or any other real estate topic, feel free to contact me by phone or email. I’m always happy to hear from you.

New Loan Limits

melinda.elmer@gmail.com (Melinda Elmer) — Tue, 21 Jan 2020 07:34:00 -0800

Here’s by how much loan limits have been increased and what this means for homebuyers.

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New loan limits are affecting homebuyers. As you may have heard, loan limits have been increased. To clarify, any loan obtained below its limit is a regular conforming loan; any loan obtained above its limit is a jumbo loan. Increased loan limits mean more buying power for buyers. Here are the exact limits for different types of housing:

Single-family homes: $765,000

2-unit homes: $980,000

3-unit homes: $1,184,000

4-unit homes: $1,472,000

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As you may have heard, loan limits have been increased.

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You can get a better interest rate and a lower cost for all loans under these amounts for these properties. Conforming loans can be sold on the market, which makes them more desirable than jumbo loans. Jumbo loans can’t be sold, which makes them more expensive. FHA reverse mortgages and HELOCs have been increased as well, which opens up more possibilities to draw money from a home. The VA has completely removed the limit for their loan, so VA buyers can buy with 100% financing with no limit. Previously, VA buyers could only use 100% financing up to a certain amount. If they purchased above that amount, they had to pay the down payment. I know this is a bit of a tricky subject, so if you have any questions about it, don’t hesitate to call or email me. I’d be happy to help.

HELOC Q&A

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 2 Jan 2020 12:00:00 -0800

Here are a few of the benefits of getting a home equity line of credit.

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Today I’m joined by Liz Fajardo of Comerica Bank to answer a few important questions about home equity lines of credit (HELOC). Why would anyone want to get a home equity line of credit? According to Liz, it’s a great product for anyone in need of emergency funds. This way, they’ll be able to access these funds instead of getting a credit card with a higher interest rate. Home equity lines of credit have lower interest rates. Why get a home equity line of credit instead of refinancing? By getting a home equity line of credit, you don’t have to touch the rate on your first mortgage, and it’s there to utilize when you need it. If you refinance, you’ll have to touch the rate you have, and given the fact that a lot of rates are great right now, most people don’t want to touch them. What are typical rates for a home equity line of credit? Right now, Comerica offers a great promotion with a rate of 2.99% for the first six months. After that, it increases to 5.25%—that’s way better than a credit card! In what type of situations do people usually get a home equity line of credit? Many like to use them for debt consolidation so they only have one payment for everything they owe. They’re also handy for those who need to make home repairs. Additionally, as mentioned above, they’re great for anyone who needs an emergency fund. It’s ready for you to use when you need it, but you don’t need to touch it. This means, in addition to not needing to get a credit card with a higher interest rate, you also don’t need to borrow money from a family member or dip into your 401(k). In summary, home equity lines of credit can benefit all types of homeowners. If you have any more questions about this topic, you can give Liz a call at (562) 590-2588. As always, if you have any more real estate questions, you can call or email me anytime. I’d love to help you.

Red Flags to Check for When Buying/Selling a Home

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 14 Nov 2019 09:50:00 -0800

Today I’ll share my six red flags to watch out for when buying or selling a home.

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Today I’m discussing the red flags to watch out for when buying a home and to check on when selling your home: 1. Check for significant cracks in the foundation and walls. Small cracks here and there are natural, since the ground shifts over time. However, you should get larger cracks checked out by a professional. That way you have peace of mind if there are issues. 2. Check sewer piping. Older homes, particularly ones built during or prior to the 1940s, they may have cast iron or clay pipes. If these are cracked, they can still last many years; however, over time, they can develop issues. This can be expensive to replace, so get this checked out while in escrow. You can hire a plumber to send a camera down the pipes to analyze any damage. 3. Investigate the roof. Many older roofs will have damage or even contain asbestos, which is more expensive to replace than a roof with average wear and tear. Some older roofs can last up to 50 years, but not all of them will.

Many insurance companies will not insure a home with knob and tube wiring.

4. Find out if you have knob and tube wiring. Many insurance companies will not insure a home with this type of wiring. You want to be aware, especially in homes built in the 1940s or older, that they can frequently have knob and tube wiring in the walls. Some homes have been remodeled and have newer wiring, but you need to have it checked out by an electrician. 5. Watch out for mold and mildew. These are very common to check out, they’re everywhere. Some types will be damaging, some will not. There is a test that can determine if it’s something to be concerned over. 6. Check for lead-based paint. This is sometimes neglected in homes that were built before 1978. If you’re going to have adults only in the home, then you likely won’t have many issues with this. Older homes will doubtless have it in them somewhere. If you have smaller children or the paint is flaked or peeling, the chemicals from that can be released into the home and can be ingested, which is harmful. If you have any questions about these red flags or real estate in general feel free to give us a call or send us an email. We’ll be sure to walk you through any process you’re concerned about. We look forward to hearing from you.

Happy Thanksgiving, From My Team to You

melinda.elmer@gmail.com (Melinda Elmer) — Thu, 7 Nov 2019 09:34:00 -0800

We want to wish you all the best this holiday season.

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In light of the Thanksgiving season, today I want to send you a simple message of gratitude. My team and I have had the pleasure of working with many great people in 2019, and we want to thank you from the bottom of our hearts. We wish you a happy Thanksgiving, a happy holiday season, and all the best for the new year. As always, if there’s anything we can do for you—whether it’s helping you with your real estate needs or providing a recommendation—don’t hesitate to reach out to us.