Wow, this market's on fire!

Yucaipa hottest market in east San Bernardino Valley

Yucaipa home sales and price appreciation led cities in the east San Bernardino Valley.  For the past 3 months the number of single family homes sold rose 25% and prices climbed 15%.  Low inventory and high buyer demand in this popular city left sellers cheering and buyers jeering as multiple offers were common.

The market is hungry for more listings. Would you like to know what your home is worth in today's market?

Ready to become a home owner?

Are you tired of rent increases and paying so much of your income to Uncle Sam?

Did you know that many people in this area have found that buying a home can cost less than paying rent?

Wouldn’t it be nice to get a big tax refund next April?

Owning a home is the American Dream. It’s also the largest investment most of us will ever make, so it’s important to know what’s required.

Start by talking with a mortgage lender

Unless you have saved enough money to pay cash for your home you will need to get a mortgage. Most Realtors won’t show property unless you are pre-approved.  And when it’s time to make an offer, this step will make your offer stronger.  So the first thing to do is speak with a lender, a professional who can ask a few questions and tell you if you qualify, how much home you can afford, how much your monthly payments will be and other things that will help you make smart decisions.

How much money will you need to buy?

Your monthly payment will include principal, interest, taxes and insurance. A big down payment will lower your monthly payments and help you avoid private mortgage insurance, but it is possible to buy a home for almost nothing down. Buying a home also requires closing costs. Examples include the costs of a home inspection and appraisal. Your mortgage lender can explain all of this and answer your questions.

A decent credit record.

If you have a lot of late payments, have declared bankruptcy or left old debts unpaid, it’s harder to get a mortgage.  And if you do get one, your bad credit record will make you pay a much higher interest rate.  One of the first things your lender will do is run your credit report.  It’s free and doesn’t take much time. You will have a better idea of where you stand.

Shopping for your next home

Once you are pre-approved and committed to moving forward, it’s time to meet with your Realtor to share your “must-haves.”  Location is often the most important consideration. Choose the city or neighborhood that meets your needs for commute time, schools, shopping and quality of life.  Next, settle on the style of home that you need.  One story, two stories, number of bedrooms, size of garage, back yard, fenced?

Your Realtor will show you the homes that match your criteria. Before you know it you’ll be ready to make an offer.

Call today!  We’re here to help.

Should buyers worry about PMI?

Some first time home buyers who can't afford to put 20% down worry about Private Mortgage Insurance.  PMI, like ordinary interest paid on a home mortgage is tax deductible for many home buyers.  Considering that most of your monthly payment in the first year's of your home loan, the amount of interest you pay each year can really add up.

Besides the pride of ownership and not having to worry about "the rent going up," home ownership has its advantages.  At tax time home owners smile that the biggest costs of home ownership - interest and taxes - are deductible according to today's tax guidelines.

So at the end of the year the home owner has deductions that significantly offset what they have paid in monthly payments.

Of course everyone's situation is different so its important to check with your tax advisor.

Perhaps the bigger worry for buyers paying PMI is the amount of their payment.  After all, paying an extra $200-$300 per month on top of the regular payment may be a big hit to the budget.  The cost of saving up for a bigger down payment may m ean home prices rise beyond what you can afford.

Your best bet is to meet with a lender to find out how much home you can afford.  A mortgage expert will explain your options so you can decide what is best for you.

If you are ready to make the move from renter to home owner and need references for a good lender, contact me so we can help.

Home values, sales up in East Valley

Home sales in Redlands, Highland and Yucaipa, Ca. are up 10% so far this year.  The median sales price is up 7%.  That's great news for sellers.   With 567 single family homes and condos for sale (up 5% to last year), buyers have more choices.  Still, buyers are finding that they need to be quick with full price offers if they want to win and bid in this hot market.

This chart shows you what's average in the East Valley.

More homes hit the market

Over 20 home sellers attended our home seller seminar last night in Laguna Niguel.  Lots of questions about the future for home prices and buyer demand.  The market is hot, hot, hot right now with many homes selling in days or just a few weeks.  The big question is how long this will last.

Is this the right time for you to buy or sell your home?

One thing is for sure, buyer demand for homes in the East Valley rose sharply in the past 2 months.  Many homes are selling quickly with multiple offers.

If you are thinking of selling the next step is to find out what your home is worth.  Yes, you can check Zillow but reports show that Zillow estimates miss actual values by 18-25%.   Recent sales and a Broker's Professional Opinion are more accurate.  Call or contact me to day for current market value for your home.

Thinking of buying?  Home prices continue to rise. Interest rates are low.  If you plan to buy and live in  your new home for more than 5 years then we should talk.  The next step would be to meet with a lender to find out how much home you can buy.  May I refer you to lenders I trust?

I am here to help you.