Schnieders Real Estate Podcast

I was reading an article recently by Jonathan Smoke about how renters are feeling trapped with all the rent hikes that have been happening lately. He warns that low rental vacancies and a lack of new rental construction are pushing rents up. He says we can expect rents to outpace home price appreciation in the coming year.

Some stats says that 49% of rental households spend more than 30% of their income on housing. These households struggle to save for a rainy day and pay other bills, such as food and healthcare. The author goes on to say that housing is central to health and well-being of our country and local communities. In addition, this rental affordability crisis threatens the future of owned housing, as rent will trap more aspiring homeowners into a vicious financial cycle in which they cannot save and build a solid credit score.

In more than 75% of the counties across the country it is actually more affordable to purchase a home than to rent. It's not that potential home buyers don't qualify in terms of their credit scores or in how much they have saved for their down payment, it's that they think they're not qualified. Bottom line: don't get caught in the trap so many renters are currently in.

If you're ready and willing to buy a home, find out if you're able to! Give us a call or shoot us a call today and we'll put you in touch with a professional who can tell you whether you're ready to get a mortgage. We look forward to hearing you soon.

Although interest rates increased a quarter of a percentage, we predict 2016 may be a carbon copy of 2015. It all depends on the Federal Reserve since they’ve recently announced they’re doing away with historically-low interest rates. This is the first increase in nine years!

Additionally, the Fed hinted at more increases in 2016. It could be as many as three or four. Long-term mortgage rates are not immediately impacted by changes in short-term rate. However, multiple increases will deeply impact the Orange County housing market.

Like last year, buyers will be lining up to take advantage of the end of the low rates. The Fed will most likely make changes after the busiest real estate season of the year. We expect the seller's market we’re experiencing now will shift towards a more price-oriented market during the second half of the year. Pricing will be crucial for sellers later on this year.

If you’re thinking about buying or selling a home, send me an email today! I am happy to serve your real estate needs.

Nationally, the real estate market excels. Home prices increased in every region since last year. According to CoreLogic, 91 percent of all mortgaged properties are now in a positive equity position. Although this is great news for homeowners, many homeowners may not realize their equity position changed.

A recent Fannie Mae study suggests many homeowners are unaware of their equity changes. The study reveals 23 percent of Americans believe they’re in negative equity, even though only 9 percent are actually in negative equity. Additionally, 37 percent believed they have more than 20 percent equity while 69 percent actually do! Thus, 32 percent of Americans with a mortgage fail to recognize a great opportunity.

With a sizeable equity position, many homeowners can easily move into a housing situation that benefits their current needs. For instance, they could move into a larger home or downsize.

Every homeowner should be aware of the true equity in their house. Be aware of the opportunities that come with excellent equity. If you’re unsure about the savings in your property, contact a real estate professional to obtain that number. You could be shocked!

If you’d like specific home prices for your area or would like an estimate on your home, please reach out to us. We would love to hear from you!

I have had a lot of people asking me what's going on in the Orange County real estate market. It's cooled down as of late, and now people are starting to consider buying or selling.

Ever since the market recovery, I've been telling everyone that October is a particularly good month for real estate. The peak of pending sales is in the spring, and the peak of closed sales is in the summer. However, in October there is a small window of opportunity, and this is because of the people that are willing to move during the Holiday break.

If you're planning on selling soon, you need to be priced very accurately. Buyers who purchase at this time are very serious, and they won't buy your home if it's overpriced. Your home will sit on the market and you'll end up selling for less if you try to overprice.

On the flip side, it's a great time to be a home buyer in Orange County. We are currently transitioning from a seller's market to a more balanced market, giving you more power as a buyer. For the rest of the year we'll see a balanced market, which means that you can buy a home for a very fair price.

If you need assistance buying or selling in Orange County, please don't hesitate to contact me. I would love to set up a meeting with you!

Today we are here with Christopher Dale from Glen Oaks Escrow to talk to us about some exciting new changes coming with the TRID/Closing Disclosure Timeline. Starting October 3rd, three lending documents (Truth in Lending Statement, Good Faith Estimate, HUD 1 Statement) are going to be combined into one form, called the closing disclosure.

Along with the change to the documents comes a change in the closing timeline. It will take our typical 30-day escrow, and bump it out to what could end up being 45 days. Chris has provided us with a great handout to talk about how the process is going to be affected, but for this blog, let’s take a look at the last 17 days of escrow and what it’s going to be like.

On the 17th day before we close escrow, the escrow and the agents will be working together to prepare all the financials to deliver to the lender so they can prepare the disclosure. Once it’s prepared, the lender will be responsible for delivering it to our buyers.

Once the buyer receives it, they have three days to review it. Once the closing disclosure is reviewed, we can then proceed to close the transaction and exchange the keys.

If there are any changes to the closing disclosure, any material financial adjustments to the transaction can add another 3-day waiting period. Any last minute changes could also trigger another 3-day waiting period.

One more important thing to note is that the 17 days we are talking about here do not include Sundays and federal holidays. To be prepared, your agent needs to have all of your financials dialed in with the lender before that 17-day period.

If you have any questions for us, feel free to give us a call or send us an email. We can’t wait to hear from you!

There are many reasons getting pre-approved is a crucial part of the home buying process. For us, the most important reason is setting realistic expectations for everyone involved.

Looking at homes is a fun and exciting experience. However, there is nothing worse than looking at a bunch of homes and finding the one you love, before calling your lender and finding out that it's outside your budget. This is a crushing experience we want to help you avoid!

When you get pre-approved from the start, you will know the price range of homes you want to look at and what your budget is. When you then find the home of your dreams, your offer will stand out to the seller because your offer has already been approved! Especially in hot markets like Orange County, you want to present yourself as hassle free when buying.

Another reason to get pre-approved is to prepare for closing costs. There is a good chance your closing costs will be more than you plan for, and getting pre-approved will help you avoid any last-minute financial troubles. You'll likely have to pay various lender fees and insurance during the closing period, and it's best to prepare for those things up front.

Lastly, a great reason to get pre-approved is the paperwork. There is a lot of it when buying a house, so it's better to get started on it sooner than later!

If you have any questions about getting pre-approved, don't hesitate to reach out to us! We would love to hear from you!

When you buy a home, you want to have the seller take your offer seriously. One way to do this is to offer a Good Faith Deposit, or an Earnest Money Deposit. These are not to be confused with a down payment - that is different.

If the seller accepts your offer, your Earnest money will go towards the purchase of the home. If you back out, there is a chance that you could forfeit your Earnest Money. This is a tradition in the real estate market in order to show good faith when you put down an offer.

In a California purchase agreement, the deposit has to be in escrow within three days after your offer is accepted. Exact amounts should be spelled out in your purchase agreement so there can be no quibbling about what needs to be deposited and when. These Earnest deposits usually range from 1% to 3% of the purchase price. You can put down less or more, but it's really a matter of local custom.

If you back out of a contract for no good reason, you could lose your earnest money deposit. This is why contingencies are important when you write your purchase contract. If you simply change your mind about the home, the seller can likely keep that money.

Lastly, I want everyone to know that an Initial deposit is commonly required for purchasing homes in CA (as outlined by the Residential Purchase Agreement). The actual amount of the deposit isn't standardized, but you must pay an initial Good Faith or Earnest Money deposit, which comes out of your down payment toward the home.

If you have any further questions about this process, please don't hesitate to contact me. I would love to speak with you!

Today, we will discuss the Orange Country real estate market. A lot of people have been asking, "Are we in a buyer's or seller's market?"

Right now, we are heading into a balanced market. April 9 of this year was the peak of our seller's market. Prices were rising, offers were coming in above asking price, and homes were on the market for 54 days.

Since then, inventory has grown and demand has dropped. The average days on market is now 79 days. When the number of days on market is between three and four months, the market is considered a balanced market.

Orange County inventory increased by 7% in the last month. However, demand decreased by 9% in the last month. This means more homes are coming on the market faster than they are selling. There are 1,492 more homes on the market now than there were at the beginning of the year.

Inventory does affect home values, and appreciation has definitely slowed. When fewer homes are placed in escrow, inventory rises. There are more homes to choose from, and prices stabilize. So if you're selling your home today, you want to price it as close to market value as possible.

Still, it's a great time to buy or sell because interest rates are so low. If you have any questions about today's video or about real estate in general, give us a call or send us an email. We'd be happy to help you!