Mortgage-Rate Drop Is Good News for Home Buyers

Freddie Mac reports a modest decline in mortgage rates during the week ended Aug. 2, with the 30-year fixed rate falling to a one-month low of 6.68 percent from 6.69 percent. Interest on 15-year fixed loans, meanwhile, dropped to 6.32 percent from 6.37 percent. The five-year adjustable mortgage rate slipped to 6.29 percent from 6.30 percent, and the one-year ARM slid to 5.59 percent from 5.69 percent. Freddie Mac chief economist Frank Nothaft attributes the decrease in borrowing costs to an increase in investors snapping up Treasury securities as they move away from mortgage-backed bonds.

Courtesy: http://www.realtor.org

Dale offers perfect property for first-time home buyers

Here is an offering from San Jose Dale warfel, which he claims is perfect for “first-time” home buyers. Here are the details”

3594 Payne Avenue, #9, San Jose (Condo)
3 Bedrooms / 2 Bathrooms / Approx. 1080 Sq. Ft.
Remodeled Kitchen with Maple/Granite Slab Countertops/New Stainless Steel Appliances (Refrigerator, Dishwasher, Smooth Top Range, Built-in Microwave)/Cherrywood Laminate Flooring/Recessed Lighting/Crown Molding
Remodeled Baths with Maple/Granite/Toilets/New Flooring
New Paint, New Carpet Throughout
Price Reduced to $449,000

Note:
1. Seller will credit buyers 12 months Homeowners Dues for a full price offer.
2. Seller will consider a Lease Option Purchase.

For more info, go to www.3594PayneAve.info or http://www.circlepix.com/RCYGJF (virtual tour).

Real estate investment is lucrative

Apply the following five principles to your real estate investment, and you might start seeing an increase in your real estate income.

The money is made in the purchase: Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.

Monitor Cash Flow: Real Estate investments typically have a monthly rental income, which then is used to pay for mortgage installments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property, and then take the rest and consider investing in another real estate investment property.

Leverage on other people’s time: By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisors and employees who work for you and you will see your profits start going up.

Use leverage with a good rainy day cash balance: You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.

Spend time networking with real estate professionals: The best way to learn the latest real estate investment deals is to make friends with the local real estate professional group. They can tell you about recent developments and changes in rental, property and infrastructure of their geographical location.

Summer time in Almaden Valley

Almaden valley s a very attractive place for job seekers in the Silicon Valley to move in and what better time to do this than the summer Come summer time and the city’s abuzz with all that’s new and exciting. Almaden Valley is known for its beautiful blossoms, some of which come to full bloom in the summer.

If you decide to come here for some fun and enjoyment during the summer vacation time, you will find this city offering some of the best in family entertainment. There are plenty of theatres, cinema halls, shopping malls and restaurants for you come and enjoy with your friends and family.

Almaden valley is a place that abounds in natural beauty, which can be seen at its peak during the summer time. Its lush country side and rolling hills give a very serene environment and you will take back with you memories of a wonderful summer spent amidst the best landscape. If you like to spend your time in outdoor activities, there are plenty of trails here to go exploring. Those interested in golf would probably even consider moving in here because there is just so much you can do here in the many golf courses found in this community.

Those interested in wine-making find the Almaden Valley Art and Wine Festival truly enjoyable. This festival is sponsored by the Almaden Valley Women's Club and has been held for the past twenty-seven-years. It happens every September and is an event that must not be missed.

One of the oft visited spots here is the Almaden Quicksilver County Park. This beautiful park area is one of the best places in which to spend summer time with your family. You get to experience a piece of history too when you see the mercury mines, which produced a ton of mineral wealth during the gold-rush period.

Tips for selling - How to talk to your Realtor

When you decide to sell your home, one of the best things you can do is to take the services of a realtor. However, you need to ask the right questions so that you choose a realtor who has the expertise you require. Here some tips on what to ask a realtor:

o Realtors have a basic license to function. However, there are additional certifications such as CIPS (Certified International Property Specialist, CRS (Certified Residential Specialist), GRI (Graduate, Realtor Institute) and ABR (Accredited Buyers Representative) that the realtor can obtain. Ask your realtor about his/her certifications, so that you know you are talking to someone who is really interested in moving forward in his/her profession.
o Ask for their years of experience and about the tools they would use to sell your property. Would they be using the internet or a network of professional realtors like themselves to find a good deal for you? Another useful question here would be if the realtor is working full time or is this just a part time job? This way you will know how much of time and attention the realtor can give you.
o Asking for recommendation letters is very useful and a realtor who obliges is obviously one who is good at finding the best deal and making his clients happy.
o You need to find out how long the realtor will take to sell a home. Find out about the type of home they specialize in selling. Ask them about their ratings on closing deals on homes. This is a good way to find out about how they are performing.
o Find out if your realtor is from a reputable agency and a member of the State and National Realtor Association. You can be confident with such a person, so find out these details as you speak to the realtor.
o Ask them about their commission rates and don’t leave out asking if they will refund a part of their commission if you also purchase a home with them. This can be very useful for you if you are planning to combine your home sale with a purchase.

When you ask the questions listed above you will find out what kind of expertise and experience the realtor you are talking to has and about their background. This will help you to make a decision of whether to hire the realtor or not. Choosing the right realtor makes a lot of difference at the time of sale, because you can lose a lot of money otherwise if you do not get the right deal.

The advantages of using an Accredited Buyer representative

The Accredited Buyer Representative or the ABR® is a designation or a benchmark of excellence in buyer representation. A real estate practitioner is honored with the ABR® designation by the Real Estate Buyers Agent Council, also known as the REBAC. This council belongs to the National Association of REALTORS® who meet the specified educational and practical experience criteria.

An Accredited Buyer Representative is recommended for clients as real estate deals are processes involving a great deal of money and calculations and hence must be carried out carefully and with the help of all lot of expert advices. It is a compound process and goes through a lot of financial transactions. Because of all these reasons and more, it is always safe to have an experienced ABR, who would help in deciding upon an offering price, negotiate offers, provide professional help for buying homes and show around various homes and other real estates to choose from.

Important decisions regarding buying and selling of homes can be left entirely to ABR® designation holders, as to be one, one has to satisfy certain necessary conditions:
An REBAC® educational background must be met
The ABR core course, which is normally a 2-day course, or the REBAC web course, must be attended through a recognized institution.
At least one elective course must be completed.
Successful completion of a written exam on legal and practical facets of agency representation
Practical experience of playing the role of a buyer’s representative.
An all time member of REBAC® and the National Association of REALTORS®.

These help the ABRs to gain a lot of knowledge and experience in this field and hence, they can help in taking crucial decisions by proper analysis and calculations, after listening to all the client’s needs and specifications carefully. They help in making one feel at home at new cities, if they have relocation plans. ABRs not only assist in looking at various homes and choosing an optimal one, but also introduce clients to lenders and loan officers if needed. These agents help in taking care of financial negotiations and coming to conclusions with amounts favorable to the respective clients. After the formalities are complete, these agents take care of house inspections, warranties and insurance issues.

If you are thinking of buying yourself a home and don’t know how and where to start, meet an Accredited Buyer Representative and consider your job done.

Buying Vs. Renting

Here’s a tip for home buyers from Dale Warfel – if you’re confused about what is best renting or buying.

Home ownership offers tax benefits as well as the freedom to make decisions about your home. An advantage of renting is not worrying about maintenance and other financial obligations associated with owning property.
There also are a number of economic considerations. Unlike renters, home owners who secure a fixed-rate loan can lock in their monthly housing costs and make prudent investment plans knowing these expenses will not increase substantially.
Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. However, such returns depend on home-price appreciation.
"For some people, owning a home is a great feeling," writes Mitchell A. Levy in his book, "Home Ownership: The American Myth," Myth Breakers Press, Cupertino, Calif.; 1993.
"It does, however, have a price. Besides the maintenance headache, the amount of after-tax money paid to the lender is usually greater than the amount of money otherwise paid in rent," Levy concludes.
As for evaluating the risk associated with home ownership, David T. Schumacher and Erik Page Bucy write in their book "The Buy & Hold Real Estate Strategy," John Wiley & Sons, New York; 1992, that "good property located in growth areas should be regarded as an investment as opposed to a speculation or gamble."
The authors recommend that prospective buyers spend a few months investigating a community. Many people make the mistake of buying in the wrong area.
"Just because certain properties are high-priced doesn't necessarily mean they have some inherent advantage," the authors write. "One property may cost more than another today, but will it still be worth more down the line?"

Dale Warfel – realtor with a professional approach

Dale warfel is a realtor specializing in homes in Almaden Valley and Willow Glen. Here's what one satisfied customer has to say:Dale and his entire team provided the highest level of care we could have hoped for in our home purchase. Dale kept us informed every step of the way, provided clear and understandable answers to our questions, and provided a detailed market analysis on each property which interested us, prior to suggesting an offering price. We had a clear vision of the home we wanted, and he was tireless on our many home tours. We were kept up-to-date with the status of our escrow, making the process stress-free and fun. Dale has been a great communicator, well beyond the close of escrow, making sure that everything was running smoothly as we moved into what is now our new home. We would recommend Dale to anyone thinking of buying or selling their home. - D. and K. M.

Tips for home buyers

Located in the rolling foothills in the southernmost valley of the San Jose metro area, Almaden is an upscale, family-oriented community excellent schools, plenty of recreational opportunities and magnificent views.
Tips for home buyers:
Get pre-approved. Get a letter that says you have already gone through the loan process and are ready to buy any home up to the stated amount on the pre-approval letter.
Ask your real estate agent to pull up all properties within your range. If you are pre-approved for up to $750,000, ask to see properties up to $800K.This way you will be ready to move fast in case a property drops in price from $800K price range.
Identify neighborhoods you like, and go on a tour with your real estate agent.
Be clear about your window of opportunity. If you are moving because of schools, make sure that you let your realtor know the urgency. If your realtor knows your motivation, you will both work together as a team better.
Good buys are made on homes that require some cosmetic work. Two similar homes can be priced very differently and all it takes is a little elbow grease.
If you are serious about buying a particular home it is important to price your offer correctly. In a multiple offer situation you should understand that the home may sell far above the asking price.

Finding a good home inspector

In order to find a home inspector, Dian Hymer, author of "Buying and Selling a Home A Complete Guide," Chronicle Books, San Francisco; 1994, advises looking for someone with demonstrable qualifications. "Ideally, the general inspector you select should be either an engineer, an architect, or a contractor. When possible, hire an inspector who belongs to one of the home inspection trade organizations."
The American Society of Home Inspectors (ASHI) has developed formal inspection guidelines and a professional code of ethics for its members. Membership to ASHI is not automatic; proven field experience and technical knowledge of structures and their various systems and appliances are a prerequisite.
One can usually find an inspector by looking in the phone book or by inquiring at a real estate office or sometimes at an area Realtor association.
Rates for the service vary greatly. Many inspectors charge about $400, but costs go up with the scope of the inspection.

Setting the price for your home

So, you have decided to sell your home and are wondering how to go about setting a price for it.

One of the best ways to set a price is to calculate based on the home’s square feet. However, this will give you just an idea about what price to set. The next step you need to take is getting a comparative market analysis from your real estate agent. This can be very helpful because a CMA will give you the necessary information on the prices of similar homes that were sold, homes on the market and home that did not sell in your area.

Use this information and ask your real estate agent a couple of questions on the current rates in the real estate market. You need to find out if prices are increasing or reducing and how many homes in your area are being sold. This will help you to better evaluate your situation and you can set the price according to these details.

One important thing you need to do is look into the repairs that have to be carried out in and around your home. Are these repairs substantial, because in that case you would have to spend some money doing the repairs. Determine whether these costs could be recouped during the sale of your property. If the current market trends is such that it favour buyers, then this point is important to consider because a home that’s not in good condition will not have a good value set on it, which means people will be offering you less than what you consider is the right price for your home.

If you go to an agent, don’t get convinced by agents who simply hike up your home’s price and then come back weeks later to reduce it. The price they set is not the right one so be wary on such issues. You should not have your house in the market for more than a few weeks because a property that’s on sale for a long time becomes less saleable as people start wondering why the property was not sold earlier … are there too many defects or is the seller not motivated enough? All this actually affects the price you set and you may have to lower your price if these issues affect the sale of your home and you are in a real hurry to sell and move elsewhere.

Finally the best price to set for your home, is one which is 3% of its actual market value. This give it a 95% chance of getting sold within a normal listing period, otherwise these chances tend to decline. A higher price than this indicates that you have not really looked into the market trends and that you are not offering competitive rates. As a result people looking into buying a house within your price range will reject your house in favor of larger homes for the same price.

Millionaire Real Estate Investor workshop from Dale warfel

Dale warfel will be hosting the Millionaire Real Estate Investor workshop in April. The workshop and seminar will review property selection criteria, minimizing risk, creating your team, property "flipping", wealth building strategies with real estate, and much more.

Date: Saturday, April 21, 2007
Time: 11:00 am - 1:00 pm
Fee: $25. This includes a free copy of the book Millionaire Real Estate Investor by Gary Keller, co-founder of Keller Williams Realty.
Lunch will be provided.
As a Silicon Valley native, having lived, worked, shown, listed, and sold homes in practically every corner of Santa Clara County, you can rest assured that Dale’s combination of area knowledge, technical background, and negotiation skills will benefit you, whether you are buying or selling your home.His entire team will provide you the highest level of care you could hope for in your home purchase. They keep you informed every step of the way providing clear and understandable answers to your questions and by providing a detailed Market Analysis on each property, which interests you, prior to suggesting an offering price. They keep you well informed through out the listing and escrow period making the process stress-free.

Do market conditions affect your offer price?

A hot market is a "seller’s market." During a seller’s market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes even sell above the asking price. Though most buyers want to get a "deal" on a home, reducing your offer by even a few thousand dollars could mean that someone else will get the home you desire.

A slow market is a "buyer’s market. During a buyer’s market properties may languish on the market for some time and offers may be few and far between. Prices may even decline temporarily. Such a market would allow you to be more flexible in offering a lower price for the home. Even if your offered price is too low, the seller is likely to make some sort of counter-offer and you can begin negotiations in earnest.

More often than not, the market is simply "steady," or in transition. When a market is steady, no real rules apply on whether you should make an offer on the high end of your range or the low end. You could find yourself in a situation with multiple offers on your desired house, or where no one has made an offer in weeks.

Transition markets are more difficult to define. If the economy slows unexpectedly, as it did in the early nineties, people who buy on the high end of a seller’s market (like the late eighties) could find their home loses value for several years. So far, no one has proven reliable in predicting when markets change or how good or bad the real estate market will become.

Whether you’re a buyer or a seller, for properties and homes in San Jose, especially in the communities of Almaden Valley and Willow Glen, do get in touch with realtor Dale Warfel.

Realtor Dale Warfel hosts Millionaire Real Estate Investor workshop

San Jose realtor Dale Warfel will be hosting the Millionaire Real Estate Investor workshop in April. The workshop and seminar will review property selection criteria, minimizing risk, creating your team, property "flipping", wealth building strategies with real estate, and much more.

Date: Saturday, April 21, 2007

Time: 11:00 am - 1:00 pm

Fee: $25. This includes a free copy of the book Millionaire Real Estate Investor by Gary Keller, co-founder of Keller Williams Realty.

As a Silicon Valley native who has lived, worked, shown, listed, and sold homes in practically every corner of Santa Clara County, you can rest assured that Dale’s combination of area knowledge, technical background, and negotiation skills will benefit you, whether you are buying or selling your home. Dale specializes in homes in the communities of Almaden valley and Willow Glen.

His entire team will provide you the highest level of care you could hope for in your home purchase. They keep you informed every step of the way providing clear and understandable answers to your questions and by providing a detailed Market Analysis on each property, which interests you, prior to suggesting an offering price. They keep you well informed through out the listing and escrow period making the process stress-free.

The best time to sell your house

Spring is the hottest season for real estate. The real estate market peaks in April and May and stays strong in June and July. It's a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.

In fact, a full 60 percent of America's real estate activity takes place in the summer. But closing a home sale can take weeks, so it's a good idea to list your home early in the season.

August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then real estate sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and home sales steadily increase into spring.

However, if you miss the season, there is no need to panic. Homes can be sold in winter too. Typically homes are decorated during the holiday season and the competition is weak. Buyers may even want to take advantage of the tax deductions and may not get involved in long negotiating process. This would ensure a quick sale with little bargaining.

Due consideration should be given to local factors which may influence a particular market. Local economy is an important factor in deciding which season is the best one for a seller. A layoff in the local plant or factory may mean that spring is not necessarily the best time. Similarly, a start of a new industry may tilt the equations at the other end of the spectrum.

Factors such as mortgage rates and inflation in the economy will also decide a “good season” for real estate activity. These are beyond the seasonal variations and careful observation of local and national issues is necessary to track this.