Westside Los Angeles & Beverly Hills Real Estate Blog

Older Adults’ Use of Social Networks Growing Fast

September 1st, 2010 Categories: Uncategorized

Ruth Roseboom checks her Facebook page at least once a day. The 78-year-old grandmother from Celebration, Fla., has 40 Facebook friends and likes to see what they are up to at any given time.

Roseboom is part of a growing number of adults logging onto social networks such as Facebook and Twitter to stay connected, according to a study released recently by the Pew Research Center’s Internet and America Life Project.

In fact, for adults 50-64 years old, the use of social networking sites have jumped by 88% in the past year, the study found. For those 65 and older, it has doubled.

The younger generation remains the biggest users of Facebook and other sites. But the report shows that seniors currently make up the fastest-growing group.

“It’s surprising to see just how fast they are growing,” said Mary Madden, senior research specialist and author of Pew’s study.

Orlando, Fla., grandmother Rosie Chapman, who only revealed that she’s older than 65, joined Facebook more than a year ago. Like Roseboom, she prefers to go online to keep tabs on friends and loved ones, especially her three college-age grandchildren. Neither she nor Roseboom, however, generally share their daily activities.

Chapman was struck by some of the spiritual comments her grandson posts. “I never saw that side of him before,” she said with a smile. “I’m so proud of him.”

For the study, a survey was conducted of 695 adults who were 50-64 years old and 518 adults who were 65 and older.

The Pew Center points to several factors that contribute to why older adults are logging on to social networks now.

-It helps bridge the “generation gap.” The social networking sites bring people of all ages together in one space. Roseboom and Chapman are examples of that.

-More social network users are more likely to reconnect with people from their past. These reconnections can be powerful support when people are entering another phase of their life, such as retirement or a new career.

-Older adults are more likely to be living with chronic diseases, and those with diseases are more opt to seek support online.

More organizations, such as AARP, that cater to older adults are promoting social media networks.

Jeff Johnson, AARP manager of Florida operations, said the nonprofit organization uses Facebook and Twitter, as well as e-mail and traditional mail to reach members. “Over the past year, we have noticed more and more people discovering Facebook,” he said.

For the first time, AARP included a session last year at its annual convention that focused on social networking. It turned out to be a standing-room only event. It proved to be so successful that a session is scheduled at this year’s convention, which will be held in Orlando next month.

In May, AARP also taught its volunteer leaders for the first time how to use Facebook and Twitter to advocate for older adults.

“There is a growing understanding” on how it can be used, Johnson said.

John Evans Henderson, 62, knew he needed to embrace Facebook and Twitter as he embarked on a new career. He’s taking classes and focusing his new business on design building, especially homes, that are both “green and healthy.”

The Maitland, Fla., man has two Facebook accounts—one personal and a fan page for his business, Mr. House Guy. He spouts his opinions on his personal account, but opts to share environmental issues on his fan page. “I use it to get the word out about what I’m learning and what I can do for people,” he said.

Henderson isn’t surprised to hear more people his age are using social networking. He’s reconnected with several high school friends. It feels more like a natural progression for him, he said. “I think more people are seeing the way businesses are going,” he said, adding they have to adapt to the changing technology.

Seniors Now Computer Learning Center, which offers computer training at two Orange County, Fla., senior centers, doesn’t have a class dedicated to social networking, but it may develop one, said the group’s president Tom Springall.

Most older adults, he said, come to the organizations wanting to know two things: how to e-mail and how to get on the Web.

So far, e-mail is the most popular way older adults prefer to communicate online, he said. That, too, was reflected in Pew’s study.

Overall, 92% of those ages 50-64 and 89% of those 65 and older send and read e-mails. “While e-mail may be falling out of favor with today’s teenagers, older adults still rely on it heavily as an essential tool,” the report said.

Twitter, the micro-blogging site, tends to be lagging far behind Facebook. For example, Roseboom wasn’t sure what it was and Chapman didn’t find a need to use it. But it is slowly gaining ground.

In 2009, just 5% of users ages 50-64 had used Twitter or another status update service. That’s gone up to 11% now.

From RIS Media

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Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.

Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.

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Fannie Mae says lenders must verify mortgage applicants’ debt loads before closing

August 30th, 2010 Categories: Buying a Home

Despite earlier reports to the contrary, it turns out that your mortgage lender will not have to pull a second full credit report on you hours before closing on your home purchase or refinancing.

In a clarification of a policy announced this year, mortgage giant Fannie Mae now says that applicants will need to come clean about any debts they’ve incurred since they submitted their mortgage application — or debts they never disclosed during the application. But a formal pre-closing credit report will not be mandatory to confirm their creditworthiness.

Instead, loan officers can use other techniques to verify that you haven’t financed a new car, taken out a personal loan or even applied for new credit in any amount that might make it more difficult for you to afford your monthly mortgage payments.

Among the techniques Fannie expects lenders to use on all applicants: commercial or in-house fraud-detection systems that have the capability of tracking applicants’ credit files from the day their loan request is approved to the moment of closing.

Though Fannie made no reference to specific services in its recent clarification letter to lenders, some commercially available programs claim to be able to monitor mortgage borrowers’ credit activities on a 24/7 basis, flagging such things as inquiries, new credit accounts and previous accounts that did not show up on the credit report pulled at the time of initial application.

One of those services is marketed by national credit bureau Equifax and dubbed Undisclosed Debt Monitoring. Aimed at what Equifax calls “the quiet period” between application and closing — often a month to three months — the system is “always on,” the company says in marketing pitches to mortgage lenders.

Home loan applicants failed to mention — or loan officers failed to detect — “up to $142 million in auto loan payments” during mortgage underwriting in first-mortgage files reviewed by Equifax last year alone, according to the credit bureau. Those loan accounts had average balances of $361 a month — more than enough to disqualify many borrowers on maximum debt-to-income ratio standards imposed by Fannie Mae, Freddie Mac and major lenders.

Why the sudden concern about new debts incurred after mortgage applications? It’s mainly because Fannie and others have picked up on a key type of consumer behavior pattern that has helped trigger big losses for the mortgage industry in recent years: Some buyers and refinancers delay creating new credit accounts until they’ve cleared strict underwriting tests on the debt-to-income ratios and been approved for a loan.
Then they splurge. Additional debt loads can run into the tens of thousands of dollars, executives in the mortgage and credit industries say. Had those new accounts been present on their credit files at application, borrowers might have been turned down for the mortgage, or required to make a larger down payment or pay a higher interest rate.

Fannie’s new policy puts the burden of detecting these debts squarely on lenders’ or loan officers’ shoulders. Whether they pull additional credit reports — still an option allowed under the revised policy — or use some form of monitoring service, lenders must guarantee that the debt loads stated in any mortgage package submitted for purchase by Fannie Mae are scrupulously accurate as of the moment of closing. If not, the lender probably will be forced to endure the most painful form of punishment in the financial industry: a forced “buyback” of the mortgage from Fannie Mae.

Billions of dollars in buybacks have been demanded by Fannie Mae and Freddie Mac this year alone — a fact that is likely to make lenders even more eager to conduct some type of refresher credit check or continuous monitoring of all new loan applicants.
What does this mean for you if you’re planning to finance a home purchase or refinance your existing mortgage into one with a lower interest rate? Tops on the list: Be aware that sophisticated new credit surveillance systems are being placed into operation in the mortgage industry.

Next, try not to inquire about, shop for or take on new credit obligations during the period between your application and the scheduled closing. If you want that new loan, keep your credit picture simple — no significant changes, no additions — until you get the mortgage.

During the heady days of the housing boom, nobody was looking for debt add-ons before closings. Now they are scanning for them all the time.

From L.A. Times

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Why the 27% drop in home sales shouldn’t worry you (too much)

August 27th, 2010 Categories: Buying a Home

From Ann Brenoff on WalletPop

There was a collective gasp when the news broke Tuesday that existing home sales had fallen off by a whopping 27%. Economists stammered and teared up over the deterioration of the housing market. And we’re sure that more than a few real estate agents — the ones who managed to take their heads out of the oven — went straight to call Mom and see if their old bedrooms were still available.

Time to take a deep breath. Here’s what the news really means to you: Likely nothing.

Do you have a house you need to sell? No? Then put your crying towel away, or loan it to someone who really needs it.

There are 75.1 million owner-occupied housing units in America and only 4 million of them are on the market today, according to the National Association of Realtors. The rest of you should just go quietly away. Yes, your home is worth less on paper than it was a year ago or even five years ago. But that was paper money, just like what you play Monopoly with. You don’t have to sell, you likely can’t anyway, so why drive yourself nuts over it?

Now that those people have left the post, let’s work on those who really do need to sell. I may have some encouraging news for you. While that 27% free-fall is no doubt accurate, it may not be where you live. Now, more than ever before, the real estate market is hyper-localized. That means the depth to which you are impacted by the housing market crash depends not just on which city you live in or even which neighborhood of that city, but actually on which streets within that neighborhood.

Ernie Carswell, a top-producing agent with Teles Properties in Beverly Hills, offers a neat micro market report each month for Los Angeles. Looking at the one he sent me yesterday, you get a totally different feel for what’s going on in the housing market.

Here’s but one example: Comparing July 2009 with July 2010, in the high-end community of Bel-Air, Calif., the median price of sold homes went up 1.4%. Yes, up. In July 2009, there were 213 properties on the market for an average of 96 days; the inventory moving at the snail’s pace of 19.6 months. Yet in July 2010, there were 178 properties on the market for just 48 days and the inventory was expected to last 6.2 months. Higher sales prices, fewer homes to compete with, things moving faster.

Those numbers would suggest a different real estate story than what the national figures tell. Location really does matter. And before you dismiss me as out of hand and think prices are only holding in the high-end market, let me assure you they are not. Again, it’s pockets. If you are in a hot pocket, you may not be as bad off as the broader numbers suggest.

I’m not saying don’t panic, just don’t panic yet. One thing is really does underscore is the need to hire an agent who seriously knows your street. This isn’t a job for the sister-in-law who just got her license or someone who assures you that they “can sell anywhere.”

Carswell says, “As the economy and the real estate markets continue to change, the nuances between different areas and different neighborhoods are becoming increasingly magnified. One neighborhood may show a sales increase, while another neighborhood just blocks away may be experiencing a dramatic drop in sales from the previous year. While the media publishes its statistics based on national, state and county trends, this distorts the public’s perception of what could actually be happening in their own neighborhood.”

Listen to the man. He speaks the truth. Bloggers love to post items about how far the rich and famous have fallen or tell you which celebrities had to drop their asking prices by millions. But there is only one address you should be concerned with: Yours.

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Three Lessons from Three Years of Recession

August 25th, 2010 Categories: Buying a Home

If there’s one thing that time consistently does, it’s move forward. So, as this Great Recession continues to wear us down, it may be time to cast our eyes towards the horizon as well as take stock in what we’ve learned so far, three years into this latest economic slump.

Here are three lessons we have learned within the last three years, with a glimpse to what the future holds for the new real estate.

1. A house is a home, not a piggy bank
The great agents always knew this, but it has become—and will continue to be—a truism that will linger with us for a long time to come: a house is a home, not an investment.

Too many Americans have lost too much to think of their homes as a siding-clad ATM. Instead, the best agents will be apt at matching houses with clients to find a perfect fit. A home, after all, is more than just crown moldings, copper wiring, and bay windows—it’s a sense of place, of community and of comfort. It matches who you are and fits seamlessly within your daily life.

Post-recession agents will need to have this knack for matching house with heart. It’s what real estate was always about, and it will be even more important from here on out.

2. The old way is not going to cut it
I’m sorry to say but, like your car phone, your fax machine is obsolete. It’s amazing how quickly our world has changed and hastened within the last three years. Just think, back in 2007, Twitter was still in its infancy, Facebook was just a trend, and the first iPhone had just come out, with the app craze still months away.

Clients are now buying movie tickets and SUVs online. They are texting more than they are calling. Their lives are busier than ever, so your service had better fit within their lives.

New real estate technologies, such as DotLoop’s online contract negotiation platform, will be the new normal in an industry known to drag its feet when it comes to tech tools. As this Great Recession has taught us, however, great agents can no longer afford to simply leave a message after the beep.

3. It really is all about people
As with any great crisis (opportunity?), the Great Recession has reminded us of that one ideal that real estate was always about, but somehow got buried underneath the deluge of offers and listings: it all comes down to people.

Real estate is one of the last industries that cannot be automated. No matter how many websites, laptops, or smart phones are out there, no computer program can tell you that you can get the best lunch meat at the corner deli on 6th or that the old man at the house next door will always be willing to lend you his ladder. A home, neighborhood and community can never be quantified into ones and zeros. It’s your job as an agent to be the expert of your area, and to make sure that you’re putting the people you’re serving ahead of everything else.

It’s only natural to want to get rid of this Great Recession, to tear away from this downturn and go back to “normal.” But the new normal will not be like the old normal. Three years from now, we most likely will be recovered, but we’ll also be changed—for the better.

Better technology for agents, better understanding of our clients and a better perspective will help to shape the next generation of real estate.

From RIS Media

Connect with Valerie…

Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and SchusterHeart and Sold: How to Survive and Build a Recession-Proof Business.

Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.

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‘Fundamental Change’ for Fannie and Freddie

August 18th, 2010 Categories: Real Estate News

With sweeping financial reform legislation enacted, the White House and Congress now must focus on fixing the mess created by the failed housing finance giants Fannie Mae and Freddie Mac. It’s a complex challenge with high stakes for taxpayers and the struggling real estate market.

On Tuesday, key administration officials conferred with about 200 industry executives, affordable housing advocates and other experts about the role the government should play in the nation’s housing finance system. Treasury Secretary Timothy F. Geithner asserted that federal involvement still was needed, but he promised “fundamental change.”

“It is not tenable to leave in place the system we have today,” he said, adding that Fannie and Freddie will change dramatically when they emerge from government control.

Pressure is growing to remake or replace the mortgage leviathans, which were seized by the government in September 2008 after huge losses from subprime mortgages put them on the brink of bankruptcy. The bailout has cost U.S taxpayers nearly $150 billion. But lawmakers must tread carefully to keep from further damaging a housing market that Fannie and Freddie almost solely are supporting. The two companies, along with the Federal Housing Administration, collectively guarantee more than 90 percent of all new U.S. home loans.

“Nobody wants to mess up the mortgage market,” said Douglas Elliott, an economics fellow at the Brookings Institution think tank. “And any transition with Fannie and Freddie is going to be fraught with some risk.”

Tuesday’s event came as the second anniversary of the government seizure of the firms approached, a bailout that left taxpayers as 80 percent owners. The administration faces a January deadline, added by lawmakers to the financial reform legislation, to make recommendations to end the expensive federal conservatorship of the firms.

Congress plans to ratchet up its involvement as well, with House Financial Services Committee Chairman Barney Frank, D-Mass., saying his committee will begin hearings when members return next month.

That’s not fast enough for many Republicans, signaling another bitter partisan reform fight. They have been pushing the administration for more than a year to address the mounting losses at Fannie and Freddie by getting the government out of the housing finance business.

“It is past time to rid the American taxpayer of the liabilities of these financial institutions once and for all,” Rep. Mike Pence, R-Ind., said Tuesday as he blasted the Obama administration for continuing the bailouts of Fannie and Freddie begun under President George W. Bush.

But the Obama administration has been moving slowly for fear of further harming the housing market. There was fresh evidence of problems Tuesday as Southern California home sales plunged 21.4 percent in July compared with a year earlier, according to research firm MDA DataQuick of San Diego.

“It’s much more important to get this issue right than to do it fast,” said Michael Berman, chairman-elect of the Mortgage Bankers Association.

Shaun Donovan, the secretary of Housing and Urban Development, said the stakes were high not just for the financial system but also for average Americans because of the major investment in their homes.

Donovan said the federal government’s involvement in the housing market needed to be reduced. And Geithner said there was a strong case for a “carefully designed” government mortgage guarantee in the future, a point echoed by panelists at the conference.

There also appeared to be consensus among the participants that any government guarantee needed to be explicit, not murky and implicit like the guarantee that stood behind Fannie and Freddie as private, government-sponsored enterprises before they were seized.

William Gross, managing director of bond fund giant Pimco, said government guarantees were crucial to the housing market, helping keep mortgage rates low.

But there still is major debate about how to structure such a guarantee and what size mortgages it should cover.

“The challenge is to make sure that any government guarantee is priced to cover the risk of losses, and structured to minimize taxpayer exposure,” Geithner said.

Fannie and Freddie were created by Congress and later turned into private, government-sponsored enterprises mandated to expand homeownership with requirements to purchase a set amount of loans made to low- and moderate-income borrowers.

Fannie and Freddie combined hold the credit risk on about $5 trillion in mortgages, and losses from loans made during the housing boom have continued to mount. The Treasury Department has pledged it will cover an unlimited amount of losses through 2012. As of June 30, the department had pumped $144.9 billion into the two companies.

Federal officials have stressed that the losses came from loans purchased before the government seizure and said standards at Fannie and Freddie have tightened significantly since then. And as the housing market has stabilized, the losses at Fannie and Freddie have lessened. Fannie lost $1.2 billion in the second quarter, down from $11.5 billion in the first quarter. Freddie lost $4.7 billion in the second quarter, down from $6.7 billion in the first quarter.

Still, the losses meant the two firms would need an additional $3.3 billion from the Treasury Department, bringing their bailout cost to $148.2 billion.

From RIS Media

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Do You Understand Why ‘Green’ Is Important?

August 12th, 2010 Categories: Environmental Issues

“Green building.” What began as a buzzword a few years ago has transformed today’s real estate industry. This month, we talk with Al Medina, director of NAR’s Green Designation, a groundbreaking educational program that provides vital training, support and information to professionals who are looking to advance their businesses and raise awareness of the environmental impact of commercial and residential real estate.

Why is NAR’s Green Designation important in today’s market?
Staying educated in a rapidly changing marketplace is vital to the success of any agent. NAR’s Green Designation prepares REALTORS® to seek out, understand and market homes with green features to potential buyers. By educating themselves in green building and sustainable business practices today, Realtors are preparing themselves for the future of real estate. And if green homes have not reached your area, they will soon.

Established areas that have green homes show a clear marketplace advantage compared to traditionally built homes in terms of time on the market and sales price. For instance, in 2009, in the Atlanta area, certified green homes on average sold 31 days faster than traditionally built homes. Today’s market requires a Realtor who is aware of these statistics in their community, and earning NAR’s Green Designation is a step in that direction.

How do brokers benefit from encouraging their sales associates to seek NAR’s Green Designation?
Having successful sales associates equates to a successful broker/manager. And success in today’s market means keeping up with green. Between local building codes that encourage green construction, federal government incentives and the increasing adoption of energy efficiency within the lifestyles of homeowners, the future of residential real estate is shifting toward green properties. The green home of today will be the standard home of tomorrow.

To adapt to this change, we created an education path tailored to an agent’s area of specialization. Brokers and agents interested in this designation complete a core course covering a broad range of green principles followed by an elective course based on their area of specialization, whether that is residential, commercial or property management.

What value does earning NAR’s Green Designation provide to agents who work primarily with buyers?
Today, green real estate is just as much about energy efficiency as sustainability. Our core and residential elective courses teach Realtors that buyers interested in green homes are motivated for different reasons and adopting green at various levels. Understanding these motivations enables Realtors to more effectively guide their buyer-clients. The course work explains the cost/benefit value of green homes, specific green home features, the various green home certifications and available buyer incentives and credits. Having knowledge in these areas and sharing them with buyer-clients adds value and allows agents to differentiate themselves from the competition.

How can working with buyers on green issues impact local communities?
NAR Green Designees are trained to be “the source of the source” and to create relationships with energy auditors, green lenders, builders and other real estate professionals who have a specialization in green. This allows agents to not only grow their business network, but to increase consumer awareness on green issues, ultimately improving the communities in which they live.

Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.

Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.

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Pricing Your Kitchen Remodel – 5 Factors to Keep in Mind

August 4th, 2010 Categories: Uncategorized

Homeowners who are looking to remodel their kitchen should keep the following factors—that can significantly affect the price of their remodel—in mind as they begin to make plans to upgrade their kitchen. According to Kitchen Tune-Up, homeowners should pay attention the following five factors before they begin a renovation.

1. Wood species or cabinet covering material. The material that covers the cabinet will effect the overall pricing of a kitchen renovation, but not as much as you might think. A stainless steel clad cabinet will be the most expensive and a melamine (thin plastic laminate) surface will be the least costly. Cherry is usually about 7-10% more than oak, while hickory, oak and pine usually run very close in price. Unusual cabinet woods like alder, mahogany, fir, rift cut woods, redwood, teak, etc. will usually cost more than common oak or pine.

2. Kitchen layout. The layout of the kitchen and the cabinet configuration will largely affect the price of a remodel as well. For example, a lazy susan will cost more than a sink cabinet, a stack of drawers will be higher priced than a one drawer/two door base cabinet, a U-shaped kitchen costs more than an L-shape with an island and a wall oven/cooktop combination makes the kitchen cost about $1,000 more than a free standing range. Setting a budget to design within can often save homeowners many hours of re-design.

3. Cabinet door style. A door with many details will usually cost more than a simple door. If an arch is added to a square panel, homeowners can expect to pay more. A door with lots of grooves or molding generally cost more than a simple door and a full overlay door (door that covers almost the entire cabinet face) costs more than a traditional overlay door. Doors set inside the cabinet frame (called inset) cost more than doors that are mounted over the cabinet frame.

4. Type of cabinet finish. The type of cabinet finish you choose will vary the pricing of a kitchen remodel as well. Painted cabinets will run 10-15% more than a standard stain finish and glazes or layered finishes will run 7-15% more than a standard stain due to the extra labor.

5. Cabinet construction methods and materials. Don’t skimp in the area of cabinet construction in order to save money on your kitchen renovation as better construction methods make a kitchen durable. In fact, cabinet construction may be 60% of the entire cabinet cost.

From RIS Media

Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.

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Have You Had the ‘Social Media Talk’ with Your Clients?

July 13th, 2010 Categories: Real Estate Tools

In today’s real estate market, buyer’s still carry the upper hand when it comes to negotiation. And as their Realtor, it’s your job to passionately and intelligently guide and educate your clients through the sales process from start to finish.

It’s time to add the ‘social media talk’ to your list.

Have the conversation with your clients
With online connectivity virtually blanketing the entire world and the expansion of the savvy buyer, it’s important you have a conversation with your clients about disclosure of information regarding their listing on social media sites and communities, like Facebook and Twitter.

First, take their social media temperature. Ask them a few questions to gauge their social media engagement and overall understanding of the medium. There are several camps of the types of people, as well as mind sets who engage in social media. Those who participate all the time, those who keep their feet wet and those who don’t while holding up a large closed sign with big locks on their door.

Don’t disclose the sales or escrow process online
Make sure your clients keep the marketing and pending sale information of their home close to their chest. Be sure they don’t discuss pending offers, the inspection process, or escrow particulars in the social media communities in which they belong.

Many of your clients may find this activity harmless and just friendly chat amongst their friends and family, but in some instances, it could derail a sale. For example, if your client’s Facebook pages are set to share with everyone, the information they post is ‘open’ for the world to read. Twitter is also open for everyone to read—even if your client has protected tweets, individuals within their community have access to their posts.

Savvy buyers can find your clients in social media communities
Potential buyers can find out the names of property owners through county assessor website information and run a search through various social media tools to locate a property’s owner. Any information your clients post in open social media communities can disclose the type of people the owners are, and potentially, the progress of the property’s advancement through the sales process, pending offers and the home inspection.

Remember to add the ‘social media talk’ to your new client presentations or have the discussion with your current clients. In the end, it may save the deal.

From RISMedia

Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.

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Secrets Mortgage Lenders Don’t Want You to Know….

July 12th, 2010 Categories: Buying a Home

The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note.

For many of us our mortgage payment is the most important financial decision we’ll ever make. Doesn’t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!Unbelievably, many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars.

Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure that all the financial steps are taken care of properly and economically. Utilize a Lender With Established Ties to an Agent – Lenders are much more flexible with the real estate agents who have done business with them previously. This relationship then establishes them as a team. The lender and agent work effectively together, referring each other business.

That’s why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!Don’t Attempt Paperwork Alone – All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lenders help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.

Look at All Your Options - Make sure you see at least 5 loan programs for your mortgage. Lenders have at least 10 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all it’s your money you’re spending – not theirs!

Demand Service - There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don’t overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don’t let the process become so intimidating that you lose that understanding.

Stay in Complete Touch – You should receive a written report from your lender about every step. This will ensure that no details are overlooked and there will be no surprises.

Negotiate a Flexible Loan - Don’t just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start going up. Make sure that you understand whether or not that is an option in the package you are looking at.

Don’t Give Up on the First No - Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times special circumstances when explained properly to the person in charge, will win you the loan.

Don’t Wait for the Bottom of the Market - The odds of you hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You’re better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won’t miss out on the property you’ve spent so much time locating.

Be Honest With Your Lender - Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.

Become Completely Educated – Pick your lender’s brain. Lenders will teach you all about your various options, even if you haven’t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.

Get Prequalified - Lenders will provide you with a certificate of pre-qualification. By getting prequalified you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times they are able to get you a larger loan than you may have thought possible.

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International Interest in U.S. Homeownership Increases, Realtors Report

July 9th, 2010 Categories: Real Estate Tools

International home buyers are increasingly attracted to property in the U.S., according to the National Association of Realtors’ 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country.

“While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder. “The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, Realtors have a global perspective.”

The survey covers the period between April 1, 2009 and March 31, 2010. During that time, foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7% of the residential market.

Slightly more than a quarter of Realtors, 28%, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23% of Realtors worked with foreign clients. Eighteen percent of all Realtors were estimated to have completed at least one sale, compared to 12% last year.
“Several factors have contributed to an increase in international buyer interest in the U.S.,” said Golder. “A large majority of Realtors report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value.

International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23% of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing. In 2010, Mexico replaced the U.K. as the second largest buying group with 10% of buyers. Buyers from the U.K. decreased from 10.5% in 2009 to 9% in 2010. Eight percent of recent buyers came from China/Hong Kong.

Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans.

International buyers were reported in 39 states in 2010, but a slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53% of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.
The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009’s median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median market price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16% of the total international purchases were for homes priced at more than $500,000. According to Realtors, this was because international buyers are typically looking for a second home.

A majority of international buyers, 66%, purchased single-family detached homes. However, more international buyers purchased a condo than did their U.S. counterparts, at 23% and 7%, respectively. Only 44% of international buyers used a mortgage to pay for their home, compared to 92% of domestic buyers. Fifty-five percent of foreign buyers paid all cash. Realtors reported that a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34% of potential foreign buyers were unable to complete transactions because of financing problems in the U.S.

From RIS Media

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