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Archive of entries posted on December 2009

Searching for the Perfect Home

The Home Buyer’s Checklist

- Robert Larsen December 29, 2009

Searching for that perfect home can be quite a challenge. Sooner or later, the dozen upon dozen of homes that you have viewed will quickly blur together and you won’t be able to remember the specific details that you liked and dislikes about the individual homes. Often times, this can become very stressful and make the exciting task of finding your dream home about as fun as going to the dentist for a root canal. Don’t let this happen to you, or if you’re an broker, don’t let this happen to your clients. Remember this is the home that you, or your clients, will be living in the the next 5, 10, or 50 years of your/their life. Don’t start off with negative memories of the home.

Prospective home-buyer’s need to stay as relaxed about the situation as possible, in order to make the transition from one home to another as memorable as it should be. Also, stress can lead to forced decisions in purchasing a home, which could mean that it is a decision that you could soon regret. You should not be required to compromise your needs and wants when trying to find your perfect dream home, because it is out there and sooner or later you will find it. In order to relieve some of the stress of trying to remember all the little details about each home, it is beneficial to write things down and keep good notes. If you’re anything like me and need to constantly stay organized, instead of using blank pieces of paper, try using this Home Buyer’s Checklist. This simple, yet efficient, checklist will keep your thoughts on specific properties organized; try to keep them all in one folder. If you have questions about a property that you had previously seen, just simply refer back to your folder of checklists.

Equally as important, especially in today’s market, make sure you are up-to-date with new listings and price reductions, because your perfect home is probably another person’s perfect home as well. Depending on your time-frame, you should be reviewing the changing real estate market on a daily basis. It doesn’t take long, but if you don’t, there is a good chance that someone else will be purchasing your dream home. Have your agent email you updates daily to keep you informs.

If you would like to receive more helpful forms like the Home Buyer’s Checklist, please visit my other website, Captivating Estates, by clicking the link. Or copy and paste the URL below into your web browser.

http://captivatingestates.com

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Has Housing Reach a Bottom?

Dramatic 2011 housing rebound eyed

December 28th, 2009, 6:00 am posted by Jon Lansner

Homebuilder consultant Mark Boud of Real Estate Economics …

Eyeball: Did Orange County housing have a bottom in 2009 — full or partial?

Mark: We formed a price floor around June 2009 and have since seen improvements. We actually formed a floor in sales volume back in January 2008, and have since seen improvements. Prices always lag sales volume — both up and down — by as much as 2 years. Some are forecasting a “double dip” or “W” recession where housing prices continue to deteriorate — partly due to a deluge of distressed inventory to be unleashed on the market. I don’t buy it. At current levels of undervaluation, distressed inventory is being absorbed faster than it is being introduced, and this trend will continue in Orange County and throughout California. 2010 won’t feel like a dramatic improvement in either price or sales volume, but small, incremental economic and market improvements will continue through next year, with more dramatic improvements forecast for 2011.

Eyeball: Driving forces in local housing — good or bad — in 2010?

Mark: Unfortunately, the main driving force won’t be job growth until the latter part of 2010. The main driver in housing sales during 2010 will be under valuation. Home prices remain grossly undervalued relative to incomes when the present mortage cost-to-income relationship is compared to long-term trends. Undervaluation will be increasingly realized as we move closer to economic growth. Sidelined buyers will re-enter the market in larger numbers to take advantage of distressed housing, low priced resales, and reduced priced new homes.

Eyeball: Predict 2010 gain in DataQuick’s OC median home-sale price …

Mark: We predict a 2.1% positive change in the median price of housing in Orange County during 2010; our forecast for 2011 is +4.0%; and we forecast an +8.0% change by 2014.

Eyeball: A year from now, what surprise might we be talking about?

Mark: The new home market may rebound more dramatically than the overall housing market. For example, new homes being offered on the Irvine Ranch may absorb and appreciate faster than anyone anticipates – partly due to the lack of competitive new home inventory and partly due to a faster-than-anticipated drop in distressed housing inventory. As early as January, there may be a bit of a new home ‘frenzy’ on the Irvine Ranch.

Eyeball: Thinking back over this decade, list “lessons learned” from the roller coaster ride?

Mark: Most of the problems we face now are because we deregulated the mortgage market during this decade. By reducing our mortgage standards, we allowed non-traditional buyers — speculators, investors and unqualified buyers — to enter the market en masse, and encouraged the housing market to transition to an investment market. We’re paying a deep price for such foolishness.

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