How Much of a Down Payment Do You Need to Buy a House?

Many people don’t know how much money they’ll need to put down in order to buy a house. Today, I set the record straight.

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How much money is required to buy a house? I get this question all the time. Today I’m going to explain exactly how much money down you need to buy a house.
There are three popular loans that just about everyone takes advantage of when buying a house: VA, FHA and Conventional loans.
Let’s start with a VA loan. These loans are for military personnel and require a 0% down payment. It’s a great service that our government provides for our service men and women.
Next, we have the FHA loan which requires a 3.5% down payment. It’s $17,500 on a $500,000 house.
Last is the Conventional loan. Minimum is 5% down. Using a $500,000 house as an example again, the down payment would be $25,000.

You’d be surprised how many buyers out there have absolutely no idea how much money it takes to buy a house.

Keep in mind that with all of these loans there are closing costs to consider. Your closing costs will vary depending on the type of loan you use. Be sure to talk to your lender and Realtor about how to keep these costs as low as possible.
If you have any questions regarding this or other real estate-related topics, please give me a call, send an email, or visit www.housecallrealty.com. Have an outstanding day!
**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by- case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

Can Buyers or Sellers Cancel the Purchase Agreement Once in Escrow?

One of the most common questions I’m asked by buyers and sellers alike is: Can I cancel my contract? Today, I’ll be sharing the answer.

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One of the most common questions I’m asked by buyers and sellers alike is: Can I cancel my contract?
For buyers, the answer is absolutely yes. Contracts completely favor the buyer. Once your offer is accepted by the seller, you have 17 to 21 days (depending on what is negotiated) to do your due diligence.

Due diligence is the period where you must get your loan fully approved, your home inspections, appraisal, and more. At any point during the due diligence period, you can cancel for any reason. The only money you will lose is the cost of your inspections. Your earnest money deposit will be returned to you.

So, what about sellers? Well in the case of those who are listing their property for sale it is a
different story. If you think there is any chance you might change your mind about selling your home don’t put it on the market for sale. However, canceling on the buyers can be done if they are not following the agreed upon terms and conditions of the contract and you have given them a written Notice to Perform.

If the buyer follows all of the terms and conditions of the contract, you cannot cancel once you are in escrow.

If you have any other questions or would like more information, feel free to give me a call/txt/email. I look forward to hearing from you soon.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

Which Real Estate Site Should You Use?

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If you are in interested in buying or selling, which website should you use for your research, HouseCallRealty, Realtor.com, Zillow, Redfin, Trulia etc…?  

You probably have many questions.  Which one lists the most homes for sale?  Which are the most accurate?  How up to date are they?  When you click on a house and an agent is shown to contact - are they the actual listing agent?  Who do they really cater to?  Will you get spammed?  And the most important question, WHICH ONE SHOULD YOU USE?

When I’m speaking with my clients, especially buyers, they always, and I mean 100% of the time, search for homes on multiple sites?  Why?  Because they think there are different homes for sale on different sites.  It is simply not true.  Every website out there, including my site HouseCallRealty, use the same data from the “Multiple Listing Service” or the MLS, which is what Realtors use.  So what does this mean?  It means all of the sites have the exact same information.  So to save time, pick one that you like and stick with it.  

Zillow, Redfin, and the other sites make money selling advertising to Realtors and Lenders to appear as the listing agent and lender for the home.  They cater to real estate agents and lenders who pay for placement - advertising.   I personally get solicited at least once a week from these sites to pay for placement (advertising) in a certain city or zip code.  For example, if I bought a portion of 91915 and 91941 on Zillow, I would appear as the listing agents for 100’s of homes…because I paid for it.  

If you use one of these websites and click on multiple different homes, your information will be sent to the various Realtors and lenders who paid to have their names listed in that area and you will begin receiving calls/emails/texts from them soliciting your business.  These sites are not interested in helping you, they are in business to sell advertising – period.

So where should you safely search for homes – HouseCallRealty.com!!

1. It’s lists every home for sale in San Diego County and is updated every day.
2. Your information will not be sold.  
3. You won’t get calls/emails/texts from tons of agents across the county.
4. You can set up custom searches.
5. You can see how much your home is worth on a monthly basis.
6. You can see what is selling in your neighborhood and for how much.
7. I’m available 7 days a week to answer any real estate related questions you may have.
8. It is super easy to use.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

What’s the Real Purpose of a Home Inspection?

What is the purpose of a home inspection?

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So what is the purpose of the home inspection?

The home inspection is the opportunity for the buyers to check out the overall condition of the home they just purchased. Home inspection costs run from $300 to $500 depending on the size of the home. This is usually the first inspection the buyers do after their offer is accepted. Keep in mind a buyer has the right to do any and all inspections they want – at their cost.

So what do you want the home inspector to concentrate on?

Let’s begin with the big four–foundation, roof, electrical, and plumbing (the bones of the property):

• Foundation – If it is a raised foundation, are the pillars and posts in good condition? If it’s on slab – is the slab cracked?
• Roof – Does it need to be repaired? Does it need to be replaced or is it leaking?
• Plumbing – Are there any leaks? If leaks are not detected they could lead to mold or upgrades. Is the water pressure high or low? Is the water draining slowly in the sinks, toilets, showers, and tubs?
• Electrical - Is the panel up to code? Is the panel labeled? Are outlets and receptacles grounded? Are GFIs in place?

Buyers can perform any inspection they want—at their cost.

Other items the home inspector should inspect are:

• The overall grounds -- How is the grading? Is the water being forced away from the property?
• Driveway and garage condition – How is the concrete holding up?
• Retaining walls – Are they in good shape?
• Fencing – Does it need to be repaired?
• Wood – Is there any wood rot? Typically handled by the termite company.
• Patio or patio covers – What is their condition?
• Heating and AC – Is it working? Does it need repairing or need to be replaced?
• Water heater – Is it working? Does it need repairing or need to be replaced?
• Attic – This is a good place to check for roof leaks.
• Windows – Are they leaking, do they lock, do they slide properly?

Keep in mind these are just a few items a home inspector should check.

If you have any questions about home inspections or you’re thinking about buying or selling a San Diego home, don’t hesitate to give me a call or send me an email. I’m always happy to help.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

What to Do if Your Home Doesn’t Appraise

Many buyers think a failed appraisal spells the end for their homeownership dreams. That’s not true at all. You have many options to choose from on how to proceed.

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So, what happens if your home you recently purchased does not appraise?

1. The buyers can cancel the purchase agreement. The buyers will receive their earnest money deposit back.

2. Ask the sellers to reduce the purchase price to the appraised value. If they agree, an amendment is drawn up and both the parties sign reflecting the new purchase price.

3. Buyer and seller can meet in the middle of the appraisal value and original contract price. For example, if the original price was $500,000 and the appraised value was $490,000 and they agree on a new purchase price of $495,000, the buyers will have to come in with an additional $5,000. The bank will only lend money on the appraised value.

If done correctly, it’s a simple renegotiation.

If done correctly it’s a simple renegotiation that makes both the buyer and seller happy with the end result.

If you have any additional questions, please don’t  hesitate to contact me immediately.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

How to Make Sure You Hire the Right Realtor

Selecting the right Realtor is probably the most important decision you will make in the buying or selling process. Here's how you choose the right one.

How should you go about selecting the right Realtor for you?

With approximately 22,000 licensed real estate agents in San Diego county, I will tell you how to select the right Realtor because as you know, everyone, and I mean everyone, knows a Realtor.

Here are a few suggestions. Selecting the right Realtor is very important, probably THE MOST important decision you will make in the buying/selling process. It shouldn’t be taken lightly considering buying or selling a home is probably the biggest and most important financial decision you will make in your lifetime.

1. Does the person you are considering choosing work as a Real Estate agent part time or full time? In other words, is real estate their career and does he/she actually make a living at it?

2. How long have they been in business? He/She needs to be in business at least 4 yrs or have successfully closed 48 transactions. Why, because experience is needed when things go wrong and that’s when it pays to have an experienced Realtor by your side.

"It pays to have an experienced 
Realtor by your side."

3. How many homes have they sold in the last 24 months? Make sure they are selling a minimum of 12 homes a year. I know people who have been a “Realtor” for the last 20 years and they average 1-2 homes sold a year. That's not good – they are not in touch with the market nor are they aggressive enough to do what it takes to sell your home for top dollar or get your offer accepted when there are multiple offers on the property.

4. Referrals are always great, but make sure they “check all the boxes.” Speak with their last 3 clients – don’t let them hand pick their references. 

5. Google them. Make sure their on-line reviews are great.

6. Look up their license status at the Department of Real Estate to make sure it is in good standing.

7. Make sure they have a video blog and website and their social media pages are professional.

8. Agent’s Brokerage – Are they a well-established professional real estate company? These Realtors tend to have more knowledgeable brokers and better business practices than the “mom and pop shops.”

9. After you have met with your prospective Realtor – do you get along with them? Can you see spending the next 30, 60 or 90 days with them? A great agent will be in constant communication with you throughout the entire process.

If you follow these suggestions I’m sure you will be working with a professional Realtor who make your home buying/selling a great experience.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

How to Get Your Offer Accepted

There are a few crucial steps you need to take when putting an offer on a home to get an edge over the competition.

According to the CA Association of Realtors there will be multiple offers on any given property 98% of the time. You will be competing, so you need a strong agent with experience and a proven track record to help you purchase your dream home or investment property.

Here are a few great tips on how to get your offers accepted over your competition.

1. Be available - when a home comes on the market you need to get out there to see within 24 hrs – you’re competing and sometimes it is a race – be available.

"Don’t mess around writing a low offer hoping to save a few dollars off your monthly mortgage."

2. Write a strong offer right out of the gate – come in high and strong, if not someone else will and could potentially get the house. Don’t mess around writing a low offer hoping to save a few dollars off your monthly mortgage. Saving $8.00 a month is not worth losing the house.

3. Make sure the offer is signed thru Docusign. It’s neat, clean, fast and looks professional.

4. Now when your agent submits the offer it should include your pre-qualification letter, proof of funds, which is your deposit, down payment and a personal letter. This alone can separate you from similar offers.

5. Increase your earnest money deposit, you’re buying a house not a cell phone – put down a minimum of 1-3% of the purchase price. This shows the seller you are committed.

6. Contingency period is typically 17 – 21 days; this is the period in which you/buyer does their due diligence – inspections – loan approval – reduce this to 14 days. 14 days is plenty of time to get everything done.  Why is this so important? Until you remove ALL of your contingencies in writing you can cancel the purchase agreement at any time. The sellers do not want to wait 21 days – 14 days will separate you from the competition.

7. The escrow period should be 30 days – there is no reason for it to go longer.

Follow my steps and your offer will be accepted. It’s easy and can make huge difference in separating you from the competition.

**A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime.  All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

Selling and Buying Without Moving Twice

There are two ways that you can buy and sell a house simultaneously without needing to move twice.

How do you sell your current house and buy another without having to move twice?

There are two ways to accomplish this:

1. Make the contract contingent on you finding suitable housing. What this means is that unless you find the perfect house that you like and your offer gets accepted, you don’t have to move.
2. Build in a rent back. After you close escrow on your current house, you can build in a rent back for up to 60 days where you rent the house from the new owner. During that time, you can look for a new house.

If you have any further questions about this topic, please feel free to give me a call or send me an email. I look forward to hearing from you.