Category Archives: Buying

Should You Purchase A Home Warranty Plan?

Buying, Financing, Insurance, Investing, Residential Real Estate, Tips, Uncategorized, , ,
Photo Credit: Judy van der Velden https://flic.kr/p/bUqzYi
Photo Credit: Judy van der Velden https://flic.kr/p/bUqzYi

Generally when you buy a home, the seller will pay for you to have a home warranty plan in force for one year. After that first year, you then have to choose whether you want to continue paying the premiums to extend that plan.   This can be a confusing decision, but one with which we can help!   Below you’ll find information regarding the standard coverages provided by a home warranty plan, along with additional info to help you decide whether you should or should not renew your existing plan.

 

How Much Does a Home Warranty Plan Cost? Plans typically range from $250 to $450, depending on coverage specifics.

 

What is Generally Covered Under a Home Warranty Plan?

  • Air Conditioning
  • Ceiling Fans
  • Dishwashers
  • Doorbells
  • Ductwork
  • Electrical Systems
  • Furnace/Heating
  • Garbage Disposal
  • Inside Plumbing Stoppages
  • Range and Oven
  • Water Heater

 

What is Generally NOT Covered?

  • Compliance Upgrades (aka – bringing water heater up to code)
  • Haul-Away Costs
  • Outdoor Items (sprinklers, fences, etc.)
  • Permit Fees
  • Refrigerators, Washers/Dryers, Garage Door Openers, Faucet Repairs (not all plans cover these)
  • Spa or Pools (unless specific coverage requested)

 

Should You Renew Your Plan?Consider the following:

  • The general age of your items that would be covered by the plan (older items are more likely to fail)
  • Your experience maintaining a home (can you tackle the repairs on your own?)
  • Your resources for helping you fix problems (consider your friends & family…assess the tools you have)
  • Your financial capability to replace items should they fail (are you capable of buying a new dishwasher?)

 

If You Buy a Plan, What Type of Coverage Should You Get?Consider your specific needs. Make sure you pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations. We’ve seen water heaters go out with a home warranty plan that covers its replacement. But the plan didn’t cover the $500 in work that needed to be done in order to update the compliance of the system.

 

We hope this helps with your decision about your Home Warranty Plan options.   Feel free to contact us if you have questions about whether you should renew your Home Warranty Plan…we’re here to help!

Tips On Choosing an Agent to Sell

Broker, Buying, Financing, Investing, Real Estate Agent, Renting, Selling, Single Family, Tips, , , , , , ,

CN March Blog PicThinking back on when you first sold or bought your home, how did you decide on who you would trust to take you through this experience? Was it from a family/friend referral, the internet, open house, or a complete stranger you met randomly somewhere? Hopefully, the decision made was the right one and if you did your homework, then we are happy that it all worked out in the end. If not, then hopefully this blog can aid you in some way.

 

Below are some tips/characteristics when searching for someone to sell your home because hiring a good listing agent is crucial to your entire experience as a home seller:

  • Experienced and educated with a proven track record
  • Hire someone that will communicate effectively with you and will give good advice
  • Has extensive knowledge of your neighborhood
  • A good negotiator to sell your home for the best possible price and as quickly as possible
  • Someone with a strategic marketing plan (ask to see what that consists of: how many websites will have your property’s info, how many open houses to be held)
  • Someone you can TRUST

 

You can check us off for all of the above and if chosen to be your Listing Agent, we at the Iseley & Walsh Group, are very involved with preparing your home for sale and marketing the property. Most importantly, we value your home just as much as you do and will always provide a comprehensive market analysis.

 

We want to give you the best experience from beginning to end. Not only are we here to do business, but we are here to build a long lasting relationship.

 

Submitted by a guest blogger.

Artificial Grass – Making OC Homes Permanently Green

Buying, Just for Fun, Remodeling, Residential Real Estate, Single Family, Tips, , ,

CI pic March BlogTurf has become more and more popular over recent years in Southern California. There is a wide array of reasons for the newly found popularity. Clearly droughts have played havoc on homeowner’s lawns and the ever-rising water costs don’t help. As the droughts continue, yards get browner and wallets emptier.
Artificial grass has become an easy alternative for homeowners frustrated with their lawns. While artificial grass may not have the exact look and feel as natural grass, the product has come a long way in recent years. In many instances it is difficult to tell the difference. Due to this fact, many homeowners are researching the possibilities.

 

Let me help you out. Artificial grass has numerous advantages over natural grass. Water Districts are currently offering large rebates to balance installation costs. In some cases the rebate programs can almost pay for entire installation of artificial grass.

 

Here are the advantages:

-Less maintenance

-Lower your monthly water bill

-Water District Rebate Programs (Often up to $3.50 a sq. ft. and the cost of labor)

-Lower cost to maintain

-Pet and Kid Friendly

 

There are clearly monetary reasons to consider the switch, but the up keep and maintenance is virtually nonexistent. Installing turf could lower your monthly water bill by $30. That could mean a $360 savings year after year!

 

There are very little disadvantages to installing turf. Clearly the look and feel of natural grass can’t be beat, but do the pros outweigh the cons for your family? Find out for yourself and schedule a time to meet with an artificial grass professional to review your “turf” options. If you need help, we have recommendations.

6 Things You Can Do With Your Tax Refund

Building, Buying, Financing, Insurance, Investing, Just for Fun, Remodeling, Residential Real Estate, Tips, Uncategorized, , , , ,
Photo Credit: ATCincometax.com
Photo Credit: ATCincometax.com

How you handle “windfalls” of money can largely determine your financial success. Here are a few ways you can apply your tax refund:

 

1.   Build an Emergency Fund – One of the best ways to reduce stress in your life is to increase your margin. That includes giving you some cushion for the occurrence of “life events” like job loss, family health issues, etc. It’s nice to have savings for these things when they come up rather than having to rely on credit cards!

 

2.   Payoff Debt – Paying credit card interest will cripple your chances of financial success. Delay immediate gratification with your refund and apply it towards paying off credit card debt. Then once you have an emergency fund in place and have paid off credit card debt, fire away at those student loans & car loans! Imagine the feeling of not having a student loan payment or a car payment. What could you do with that money each month?

 

3.   Save For a Major Purchase – Use your tax refund toward a major purchase goal such as your next car, home upgrades, new appliances, or new furniture. Set a goal for how much you’ll need and save that amount so you can pay cash, avoiding the purchase/debt cycle that plagues so many Americans today.

 

4.   Save to Purchase a Home – Depending on the size of your refund, you may be able to make a dent in saving for your new home down payment. If done right, buying a home is one of the best ways to secure your future retirement, and gain a tax deduction in the meantime. Depending on your situation, you may qualify to purchase a home with only 3% down. Contact us if you have questions regarding this.

 

5.   Contribute to Retirement Accounts – You can apply refund money toward retirement accounts such as Traditional IRA’s, Roth IRA’s, 401k’s, etc.

 

6.   Give to Those Less Fortunate – Bless somebody else with your money. There are many ways you can be generous and change somebody else’s life. Be creative! Here’s one fun idea: click here.

 

The key is to think about how you can best apply your refund according to your goals before you impulsively spend it aimlessly.

 

What are you going to do with your refund? Please reply and let us know!

Location, Location, Location!

Buying, Investing, Real Estate Agent, Residential Real Estate, Selling, Single Family, Tips, Uncategorized, , , , , , , , , ,
http://www.landandfarm.com/property/17_acres_in_Orange_County_California-381303/
http://www.landandfarm.com/property/17_acres_in_Orange_County_California-381303/

I work with a lot of first time home buyers. They are probably some of my best clients. For the most part, they are willing to learn the tricks of the trade. They ask all the right questions and cover their boundaries. In a lot of ways, they are trusting and accept advice easily. However, whether you are a first time home buyer or purchasing your 3rd, 4th or 5th home one rule of real estate always stands firm.

 

Location, Location, Location!

 

Location is one of the first things I discuss with my first time home buyers. As an agent, it is always at the forefront of my mind when touring properties.

When determining a home, and more importantly its value, the location of the property will determine the long term value and stability of that property. This can be said for a large geographic region such as Orange County all the way down to the specific location in a particular neighborhood. Orange County has higher home values than San Antonio, Texas for a reason. The value is in the land, location and proximity to certain desires such as, the beach. The beach may be the obvious determining factor in driving home values in Orange County, but there are many other factors to consider that drive the cost of your home.

 

When buying a home in Orange County, consider these items:

-Proximity to freeways

-Ease of getting to the beach

-Lot size and location

-Proximity to shopping, restaurants and grocery stores

 

Cities such as Costa Mesa, Aliso Viejo and Irvine have all seen significant gains in home values over the last year. One of the common denominators with these cities is the relative ease to freeways or toll roads allowing for shorter commutes to beach cities and work. There is a high demand for spending less time in your car and more time in the sun. All of these cities offer great shopping and dining, as well. As you move further out to Foothill Ranch, Mission Viejo, Rancho Santa Margarita or San Juan Capistrano (all great cities in their own right) you will see slight drops in home values due to their geographic location. They are often associated with a little longer commute and fewer “Town Centers” where you can get all your shopping done. However, when picking a neighborhood regardless of city one thing stays consistent in determining price. Land! For example, think about a neighborhood in Aliso Viejo. The average home price for that neighborhood may be $600,000. If you have a corner lot in that neighborhood, your home may sell for $50,000-$75,000 more just because of the lot. If you can find a deal with a corner lot, snatch it up quickly. It will retain its value year after year. Many people don’t realize that the value of their home is in the land. If you currently own a home, take a look at your next tax statement. Say, your home is in the same neighborhood as the example above. You get your tax bill and your property was assessed for $600,000. Take a closer look at your bill. I would be willing to bet my own home that your tax bill reads “Land Value $425,000” and “Structure Value $175,000”.  The fact is, building a home doesn’t cost a great deal comparatively speaking. The value is in the land and location!

Solar Panels: Are They the Right Investment for Your Home?

Buying, Financing, Investing, Real Estate Agent, Remodeling, Residential Real Estate, Selling, Single Family, Tips, Uncategorized, , , ,
Photo Credit: Michael Coghlan https://flic.kr/p/fGwupJ
Photo Credit: Michael Coghlan https://flic.kr/p/fGwupJ

You don’t have to look very far to find information on solar panels. There are all types of products and low financing options that guarantee to save you money. The average home owner may see solar panels as a way to avoid the ever increasing price of energy. I am not here to tell you solar panels are or are not a good investment.  As a Realtor, I am here to give you my professional, unbiased opinion on solar panels in the housing market and how they effect sellers.

How do solar panels work? Solar panels are typically sold on a long-term lease of 20 years with a monthly payment. In turn, the solar company will use the energy captured by the panels to eliminate your monthly energy bill from your existing energy company. If you sign up for a monthly lease of $150 and your typical energy bill is $200 a month, then you save $50/month or $600/year. Multiply that over the term of the lease and you just saved $12,000. Sounds great, right? Not so fast… Remember, you signed a 20 year lease. You are bound to the payments of the long-term contract and based on the example above that would be $36,000. What happens if you decide to move? What happens if technology advances and there are cheaper alternatives?

What happens if I want to sell my home and I have a long-term lease on the solar panels?  If you do want to sell your home, the potential buyer will have to take over the solar panel lease in order to purchase it. OR the new owners could purchase the home without taking over the lease, leaving you responsible for the payments even after you moved out.  At first glance, the monthly savings look great and the innovative technology is a must, but make sure you are familiar with the long term ramifications.

What could the future hold? Pretend it is the year 2024.  You own a home and purchased solar panels 10 years ago. You are halfway through your lease. In that time, technology has advanced and we can capture the same amount of energy on one panel as you can with the 20 rusty panels currently on your roof. In addition, the cost in the solar panel market is a monthly payment of $40 a month. Now you want to sell your home. When you list your home, interested buyers are notified that the home is attached to a 20 year solar lease with 10 more years remaining. Why would the buyer take over a lease at $150 a month when they can get it at $40 a month? Why have 20 solar panels on their home when they could have one? Why spend more for old technology? These are all valid questions that will cause problems in your future sell.

Let’s say you don’t plan on selling in the next 20 years. My initial response would be: 20 years is a long time. Your plan today may not be your plan tomorrow. My second response would be: keep in mind you are leasing solar panels. Once your 20 years is up, you still won’t own them. But you have the option of forking up about $5,000 to buy them at their market value.  Another extra expense…and to add insult to injury, any repairs that need to be done to the solar panels during your lease will be at your own expense. The hidden costs are everywhere.

Know the facts before you decide to lease or buy. Ask yourself one question. Is saving $50 a month worth the long term issues? You may save on the front end, but if you ever decide to move, it will likely cost you. In my professional opinion, if you want to go the solar panel route, purchase them or avoid them all together. Otherwise, your solar panel leasing agreement could be a disaster when it comes time to sell.

Feel free to contact me directly for some personal experiences with solar panels in the housing market.

 

Photo Credit: Michael Coghlan, https://www.flickr.com/photos/mikecogh/9647603520/

Your Insurance Questions Answered

Building, Buying, Financing, Insurance, Investing, Real Estate Agent, Remodeling, Residential Real Estate, Selling, Tips, Uncategorized, , , , , , , ,
Photo Credit: http://www.aiche.org/resources/member-services/member-only-insurance-plans
Photo Credit: http://www.aiche.org/resources/member-services/member-only-insurance-plans

Insurance is one of those “love ‘em and hate ‘em” expenses in life. It is absolutely necessary to protect your financial future. Remember, the purpose of insurance is not to make you rich in the event of loss. It is to transfer the risk of major loss from you to the insurance company, in exchange for policy premiums.

 

So which types of insurance do you need? Which are a waste of money?

 

MUST HAVE’S

  • Medical Insurance – this is now mandated by our government. And for good reason. Health expenses are the number one cause of foreclosures and bankruptcies in our country. You don’t want to be thinking about financial consequences while you battle cancer. You must protect your health.
  • Home Insurance – your home is often your greatest asset; it must be covered against major loss. Liability insurance is a key ingredient with home insurance, be sure to cover your assets against accidents. Click here to learn more.
  • Auto Insurance – a certain level is required by law. You’ll also want to be sure you have liability coverage (consider “umbrella” coverage with your agent)
  • Life Insurance – how would your family fare financially if you died tonight? If you don’t know the answer to that question, life insurance is your answer. Click here to learn more.
  • Disability Insurance – your ability to earn an income is often your greatest asset. Disability insurance protects your income in the event your employer doesn’t have worker’s comp or a policy in place to cover you. Self-employed people need to pay special attention to this. This is often the most forgotten insurance.

 

NICE-TO-HAVE’S

  • Pet Insurance – recent progress with medicine makes it more likely a pet’s health can be restored with advanced procedures. Pet insurance can help you avoid having to make the very difficult decision of whether to pay for that $5,000 surgery. Click here for more info on different kinds of pet insurance, and what you should consider.
  • Identity Theft Insurance – most people waste money on credit monitoring, but have no plan for how they will recover their identity in the event it is stolen. It has been estimated that 600 hours is the average amount of time spent on recovering from an ID theft occurrence. Most people don’t have that time to waste. Click here for more info on credit monitoring vs. ID theft Insurance.
  • Long-Term Care – this is a tough one. It’s not for everyone and should be assessed on a case-by-case basis. It is expensive, but necessary to receive good care and protect assets. Talk to a trusted agent.

 

DON’T HAVE

  • Mortgage Life Insurance – the only reason to have this is if your health prevents you from acquiring regular life insurance. Otherwise, you will badly overpay for this scheme.
  • Private Mortgage Insurance – there are many home loan options these days to help you avoid private mortgage insurance. Click here to learn more.
  • Insurance on Small Electronics – as mentioned in the opening paragraph of this article, insurance should be acquired to protect major loss. The loss of small electronics like headphones, iPods, etc. would not financially cripple you. This is where a reserve fund is handy. Keep a maintenance savings account to handle these small incidents. Don’t go broke insuring them!

 

This article was not intended to give you an all-inclusive tutorial on insurance, but rather to make you aware of the types you should consider and research further. We hope this helps!

 

What are your thoughts on insurance? What types of coverage do you have? Any that we didn’t include above?

New Credit Scoring Model For Homeowners

Buying, Financing, Investing, Residential Real Estate, Uncategorized, , , , ,
Photo Credit: www.mentalhealthy.co.uk
Photo Credit: www.mentalhealthy.co.uk

FICO, the primary credit scoring system used in lending, is releasing a new scoring model at some point this fall. This new 9.0 model has been advertised to contain major changes that are expected to be a big help for consumers. However, there are some things many aren’t considering with the new release.

 

The newest FICO model has revised previous versions to no longer penalize consumers for medical collection issues. This would seem to be big news for millions of consumers who are victim to the imperfect credit reporting systems of the medical industry. Consumers caught in this medical collection web will often find their credit scores are significantly impacted in a negative way.

 

Because of this, some aren’t able to qualify for home loans; and the others who are able to qualify usually take a significant hit to their mortgage rates.

 

So one would think this new model would be of tremendous benefit to consumers, since more would have improved qualifications for home purchases based on their new higher scores.

 

However, what the media hasn’t shared with us is that most mortgage lenders don’t even utilize the most current FICO scoring model in their underwriting process. The fact is Fannie Mae, Freddie Mac and most other lending institutions still use scoring models developed by FICO over 10 years ago. Many creditors haven’t even adopted the most recent FICO model that came out over six years ago. So it’s likely creditors won’t be jumping to this new model any time soon.

 

There are several reasons why lenders don’t leap to adopt new systems. A change in their scoring model results in a significant system overhaul, costing lenders tons of dough. The system changes also have to correlate with all the other government disclosure requirements. So the sheer cost and logistical nightmare likely won’t be worth the benefit of helping a few extra consumers. Because banks have to be profitable, we can assume their agenda would take precedence before the consumers’ needs.

 

SO WHAT DOES THIS MEAN?
Don’t sit on the fence, waiting for this prospective change to revolutionize your credit situation. It likely isn’t going to happen! You might as well do whatever else you can to accomplish your dream of purchasing a new home.

 

We have spent over 10 years analyzing the credit scoring system. We may have other ways to bump up your credit scores to help you through the home buying process. There is a lot of misinformation about credit scoring, including the myths surrounding credit monitoring (click here to learn why this is a waste of your money).

 

Every situation is unique…we’re happy to help!

 

NOTE: This new model is likely to take effect more immediately with consumer & revolving reports. These entities are faster to act with their adoption systems.

What’s Your Secret Weapon?

Buying, Investing, Residential Real Estate, Selling, Tips, Uncategorized, , ,
CB Pic for Oct Post
Source: http://transactionsbybrent.wordpress.com/2012/08/14/services-offered2/

Written by a guest Transaction Coordinator

 

In an earlier post, we talked about the amount of paperwork involved in a Real Estate transaction. Can you imagine being a top producing Agent and having to handle all of the administrative tasks and paperwork flying solo? Think about how valuable your time could be spent with family and growing your business if someone else was crossing your “Ts” and dotting your “Is” to ensure your file was compliant with the DRE and the requirements set by your brokerage.  Well, who should you hire?

 

The person who can assist with processing the Real Estate file to gather and follow up on all the necessary and contractual items would be your definition of a Transaction Coordinator (TC).  Part of their job duty is to ensure that all mandatory disclosures are completed by checking all signatures, initials, and dates.  Important dates and timelines would also be sent as a reminder to all parties involved. The TC will also QC and provide a preliminary audit of the file for the managing broker to review. If all looks perfect, the Agent is worry free because he/she will be paid on time when the escrow closes.
This person can be licensed or unlicensed and will be your secret weapon so that you, as an Agent, can provide a higher level of service to your clients and do what you are meant to do – sell real estate.  A Transaction Coordinator will help you stay organized!

Commission Contradiction! Who pays a Realtor’s commision?

Buying, Investing, Residential Real Estate, Selling, Tips, , ,
Photo Source: Richard Busch https://flic.kr/p/6nWRCM
Photo Source: Richard Busch https://flic.kr/p/6nWRCM

It is often assumed in a Realtor’s day-to-day interactions that home buyers and sellers understand who is paying the Realtor fees and commissions. As of late, many buyers have expressed to me that they went with Realtor X because he or she was not charging them a commission when helping them find a home. While this is true, it is often a deceptive sale for some realtors to gain a client.

Here are the facts: BUYERS NEVER PAY A COMMISSION TO A REALTOR. Commissions are always the responsibility of the seller. Typically, the commission is broken down into two parts.

 

1) 2.5% – 3% to the agent who is listing the home

2) 2.5% – 3% to the agent who is bringing in the buyer.

 

Depending on the market, this could range from 5%-6% of the total purchase price. This payment is solely the seller’s responsibility. It is important to note as a homebuyer that when you turn around to sell your place 5 years down the road, you will be responsible for these costs.

 

Often agents will take advantage of homebuyers who do not understand the commission structure. Buyers who do not understand the commission structure agree to work with them and it typically is the beginning of a rocky home search.

 

Another disconnect with buyers / sellers and Realtors is that it is believed that a Realtor’s job is solely to sell the home or help the clients find a house.  At Iseley & Walsh Real Estate Group we know the job does not stop there! Realtors earn their commission on the level of services they provide. Our team has a 4-page document outlining important tasks that need to be done once escrow opens. This could be anything from ordering HOA docs to negotiating request for repairs. A good Realtor’s value is in their ability to quarterback all the responsibilities of escrow to assure a successful close. Just because you agreed to a purchase price, doesn’t mean the deal is done.
I cannot express enough how many times buyers or sellers have tried to cut corners with Realtor fees or discount shops only to receive poor service, feel lost in the transaction and ultimately lose a coveted property. Trust me, seeing someone who was already emotionally attached to a place lose the property due to “going cheap” is not an easy conversation to have.
In closing, I think it is important to focus on two things when picking an agent. First, understand that the seller pays all commissions. Second, understand your Realtor’s roles and responsibilities. Feeling comfortable communicating with your agent should be at the top of your list. You want to know that person has your best interests in mind, will be there to answer any question you have and ultimately will help guide you to a successful close of the property.