LOCAL BROKER MARKETPLACES FOSTER COMPETITION - N.A.R.

Local Broker Marketplaces Foster Competition

Independent, local broker marketplaces create highly competitive markets that are friendly to small businesses and new market entrants.

Multiple Listing Services (MLSs) are independent broker marketplaces that focus exclusively on residential real estate in local real estate markets. Access to inventory and free advertising as well as the practice of the listing broker paying the buyer brokers’ commission incentivizes participation in these local real estate marketplaces and creates the largest, most accessible, and most accurate source of housing information available to consumers. That levels the playing field among brokerages, allowing small brokerages to compete with large ones, and provides for unprecedented competition among brokers, including different service and pricing models 

GET YOUR OFFER ACCEPTED - FIVE MUST-DO TIPS!

You have found your dream home and are ready to make it official. To have the best chance at getting your offer accepted, check out these five must-do tips.

1. Get pre-approved & provide proof with your offer.

If you will be getting a loan for the purchase of your home, talk with a lender to get pre-approved for a mortgage, then include a copy of your pre-approval with your offer. This pre-approval letter shows the seller that you are serious and further down the home-buying process than someone who is not pre-approved. While it is not a loan commitment, it shows that a bank or mortgage company has preliminarily reviewed your credit and believes you will qualify for a loan up to a certain amount (which will be stated in the letter). All of this helps the seller feel more confident in your intent and financial ability to buy their home.

2. Offer more earnest money.

Offering 1%–2% in earnest money is the customary practice today. However, if you want to let a seller know that you are serious, you can offer more money to convey this. Remember, this money is potentially at risk if the deal falls through, so make sure you are confident in the home and that you and your offer. You should also have the contingencies in place to cover you if in case you decide to back out later, so you do not lose all of your money.

3. Discover seller’s motivation to help structure your offer.

Price is not the only factor sellers consider. Sometimes it is important for them to close quickly (For example, they may have a new job in another city). For others, they may need more time before closing (to allow their kids to finish the school year or for construction of their new home to be complete). If you can figure out the seller’s motivation, it can be a tremendous help in structuring your offer. Speak with your agent to see if you can uncover these motivations, then write your offer accordingly.

4. Shorten the due diligence period.

To signify more confidence to the seller, you can shorten the due diligence period when you would do the property inspection. Especially in multiple offer situations, you may want to shorten the inspection period to make your offer stand out. Contracts often allow buyers ways to back out during the inspection period, so a longer period means the more time the seller must wait for the buyer to commit to the purchase. As a result, sellers often choose the offer with the shortest due diligence period because if the buyer does back out, the seller was “off the market” for a shorter amount of time. Completely forgoing the inspection period could be very risky. If you do not do an inspection and find a major defect, you could be left with a hefty bill. Decide how badly you want your offer accepted before deciding to eliminate the inspection contingency.

5. Make the offer as clean as possible.

In short, the simpler your offer, the easier it will be to accept and close. Here “clean” usually means a short financing contingency (loan approval time), appraisal contingency, and due diligence period. Also, this means not including other contingencies like the purchase being contingent of the buyers needing to sell their house or asking for any closing costs to be paid for by the seller. The market is extremely competitive right now, so it may be necessary to take a few risks to get the house you want.

Now that you have covered these five essential tips, here are 3 BONUS tips you may also want to consider.

6. Include an escalation Clause

An escalation clause can be especially useful in a multiple offer situation. With this clause, you state that if another person bids higher than you, then your bid will automatically go up as well. An example of this could be that you will offer $500 more than any other bidder until a certain amount. The risk of this clause is that it shows the seller the maximum amount you are willing to offer for the house, so do not put more than you would want to pay.

7. Submit a letter with your offer

Making an offer on a property can seem intimidating, but you should always remember that the seller is just another human like you. People are more likely to deal with someone they like or can empathize with, so including a letter with an offer may boost your chances of getting accepted. Your letter does not have to be super formal, but it could be a brief note explaining yourself and plans for the home. You can even include a photo of yourself (or your family) to help them put a face to the name. All of this will reassure them that you are the right person with whom to make a deal.

8. Close faster.

Once a seller decides to sell their property, they are counting down the days until it is sold and off their plate. Therefore, another tip to help you stand out would be to offer a sooner closing date. It takes 30-45 days when using a normal bank loan to buy a house, so you should factor this into your decision when considering the expected closing date and when to set it. Trust Lending Solutions also has lenders who can help you close faster than average, giving your offer another edge over others with a longer time to close.

Call LISA @ TrustLendingSolutions.com direct 818-359-4145 for a “ROCK SOLID” prequalification! Important note: When my clients have an offer under consideration, I speak to listing agents all the time to elaborate on the pre-qual letter ensuring they know that your loan was thoroughly reviewed, processed and underwritten to lender guidelines and the loan will be smooth and fast for closing

#Realestate #buyingahome #buyers #sellers #mortgageloans #prequalified #offeraccepted #getprequalified #offeraccepted

Market Minute update from California Association of Realtors

April 25, 2022

New records continue to be set for both home prices and rental rates. While housing demand will eventually slow as interest rates continue to climb and remain elevated, tight supply is the key to higher housing costs in the short term and the long term. With more homes being listed onto the market in the next few months while home building momentum continues to push forward in the second quarter, housing costs will likely ease later this year but may not start leveling off until after the spring home-buying season.

California Median Price Sets a New Record: The statewide median home price surpassed $800k for the first time in six months and recorded a new high of $849,080 in March. California existing single-family home sales increased in their median price by 11.9% from a year ago and began to accelerate again as the market prepared to enter the home-buying season. The month-to-month percent change in median price also soared to the highest level since March 2013 and the 10.1% increase was the first time in nine years that the growth rate reached a double-digit pace. March’s month-to-month increase was also more than twice the long run average of 4.5% recorded between a February and a March in the last 44 years. With the market competitiveness likely to remain heated, the statewide median price could increase further in the next few months during the traditional home buying season.

Rents Continue to Surge: Along with home prices, cost of renting also jumped rapidly at the national level with single-family rent prices up 13.1% year-over-year in February. U.S. rent prices extended its 11th straight month of record-level gains and reached another new high as another double-digit increase was recorded. Supply shortage in available rentals has contributed to the prolonged run-up in price growth, while robust home price increases most likely have played a role in the high rent growth as well. San Diego-Carlsbad had one of the highest year-over-year increase in California at 17.1%, while Los Angeles-Long Beach-Glendale also experienced double-digit growth.

Fewer Buyers Searching for a Home: While sales remained solid in the latest sales and price report, there are signs that imply a market slowdown could be forth coming in the second half of 2022. A quarterly report released by National Association of Home Builders suggests that fewer buyers were trying to find a home to buy in the first quarter of this year. The share of prospective buyers who were actively searching declined to 46% in Q122, back to pre-pandemic levels after reaching a recent peak of 61% in Q221. For those who had not been successful in finding a home, the share who plan to give up their home search until next year or later rose for the third straight quarter to 25% in Q122, after bottoming out at 20% in Q221. Higher mortgage rates and double-digit growth in home prices are slowing down the housing demand momentum and the effect may become evident in a couple of months.

Mortgage Applications Dip as Rates Climb Further: With interest rates remaining on the rise, mortgage applications continued to decline since they started slowing in early February. The Market Composite Index, a measure of mortgage loan application volume, dropped 5% on a week-over-week basis (seasonally adjusted). The decrease was attributed primarily to the fall in refinancing activities, with the corresponding index down 8% from the prior week and was 68% lower than the same week a year ago. Purchase applications also weakened but at a more moderate pace of -3% week-to-week and -14% year-over-year.

Homebuilding Momentum Continues: Building activities was the pleasant surprise this week, as overall housing starts increased 0.3% from the prior month, while building permits also rose solidly on a month-to-month basis. Much of the upward adjustment came from multifamily units, however, as single-family starts actually declined 1.7% in March and permits fell 4.8%. Despite the pullback, single-family construction remained exceptionally strong year-over-year, with starts totaled 1.2 million units this year compared to 1.13 million units in 2021. The strong start in home building in Q122 reflects some easing in supply constraints, as builders may have found workarounds while construction employment continues to improve.

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HOUSING MARKET SLOWING RAPIDLY AMID INTEREST RATE HIKES!

 

REAL ESTATE HOUSING

The end of booming home prices is almost here, national mortgage bankers group says

BY

LANCE LAMBERT

March 25, 2022 10:56 AM PDT

Never miss a story: Follow your favorite topics and authors to get a personalized email with the journalism that matters most to you.

Housing economists are concerned. As they see it, if home price growth doesn't slow down, it could ultimately put prices so far out of reach for homebuyers that the housing market overheats. They'd like to see the market return to normal rates of growth—not risk a housing bust.

The latest forecast put out this week by the Mortgage Bankers Association should give them some peace of mind: This year, the trade group predicts that U.S. existing home prices will jump just 4.8%.

If the Mortgage Bankers Association's forecast comes to fruition, it would represent a significant deceleration from the current rate of U.S. home price growth. At its latest reading, home prices were up 18.8% year-over-year (for perspective, during that same period, the typical raise doled by Corporate America was just 3%).

If home prices rise just 4.8% this year, it would mean the housing market would have normalized back to its historic rate of growth. Since 1989, the average annual uptick in U.S. home prices is 4.6%.

Why does the Mortgage Bankers Association expect home price growth to slow down? It boils down to soaring mortgage rates. This year, the group forecasts that the 30-year fixed mortgage rate will average 4.5%—up from 3.1% in 2021. As of Thursday, we're already up to an average 30-year fixed mortgage rate of 4.42%, according to Freddie Mac.

That swift move up in mortgage rates amounts to an economic shock. As Fortune explained earlier this week, soaring mortgage rates should put downward pressure on the housing market. As rates rise, some buyers (who must meet banks' strict debt-to-income ratios) lose their loan eligibility. Additionally, higher rates will price out some home shoppers. If a borrower took out a $400,000 mortgage at a 3.1% rate, their monthly principal and interest payment would come out to $1,708. At a 4.5% rate, that payment jumps to $2,027. Over the course of the 30-year loan, that would add up to an additional $114,700.

"The housing market has gone into a savagely unhealthy stage. Everyone should embrace higher rates to cool off this madness and hope inventory rises," Logan Mohtashami, lead analyst at HousingWire, tells Fortune. "If inventory doesn't show year-over-year growth while going into the inventory seasonality period, we should be talking about credit controls. Such as abolishing all arm products while inventory is this low, letting higher rates do their thing." 

So far, the red-hot housing market hasn't shown signs of cooling. If cooling comes, industry insiders tell Fortune we would first see it through increasing levels of inventory. Right now, the opposite is happening: Last month inventory levels on Zillow.com were 47.7% below February 2020, and 26.1% below February 2021. 

When it comes to forecasting home price growth, the Mortgage Bankers Association's prediction is on the lower side. Over the coming year, Zillow predicts that U.S. home prices will spike another 17.8%. The home listing site sees the mismatch between low inventory and strong buyer demand continuing to push up prices through the year.

"The robust long-term outlook is driven by our expectations for tight market conditions to persist, with demand for housing exceeding the supply of available homes," wrote Zillow researchers.

WHAT IT TAKES TO BUY A HOME!

Buying a home has long been considered a cornerstone of the American dream. Whether it's your first, or one of many, getting a home loan to purchase a home is one of the most significant financial decisions you’ll make in your life. Many people decide to buy because of the benefits associated with home ownership.

- Asset Appreciation: Homes typically increase in value, which builds equity that can create long-term wealth.
- Tax Deductions: Some housing-related expenses are tax deductible. It’s important to discuss any potential deductions with a licensed a tax professional.
- Invest for the Future: You can make your money work for you by investing in real estate that can potentially be sold for a financial gain.
- Security: Buying a home may provide for greater stability than renting. Housing expenses are usually predictable when you have a fixed interest rate home loan; whereas living in rental property can be unstable due to unexpected increases. Furthermore, renting does not provide the ability for real estate appreciation.
- Pride in Home Ownership: Owning a home allows a buyer to settle into a community and establish long-term ties in a designated area.
- Greater Privacy: Home ownership gives an increased sense of control over the space where you reside.

If you want to make that first step toward home ownership, there are several ways to obtain a home loan. It may take time to understand the different home loans and which one is right for your financial situation; that’s why it’s important to work with a licensed loan professional who can walk you through your various options.

I'm here if your ready!  Let's get started on your Pre-Qualification - the initial phone call takes 15 minutes or less.  

Lisa Baniahmad

Broker

Call Direct:  818-359-4145

Email:  Lisa@trustlendingsolutions.com

Learn How Much House You Can Afford Before You Act!!!

 

If you have ever asked yourself what is the "First Step" in buying a new home, the answer is to determine how much house you can afford? Remember the days when families would sit around the kitchen table and discuss the family budget? It is ok if your too young to remember, the point is, this is a crucial first step in determining how much you should spend on a new home. Today, this step is done on a family computer accessing the many mortgage loan calculators you can find on the web.

Please note: the type of calculator I am talking about is the one that starts with your INCOME, DEBT, DOWNPAYMENT, AND MORE. Not the calculators that just estimate payment.

I am here if you have any questions or want assistance, do not hesitate to call Lisa/Broker, Trust Lending Solutions, call direct: 818-359-4145

Here is a brief explanation of each Mortgage Loan Calculator Factors for determining your max purchase price!

Mortgage Loan Calculator Factors

Annual Income

Your annual income is one factor that a lender considers when establishing a baseline for what you can afford to pay every month. When calculating your annual income, you should consider any money you receive on a regular basis, such as your salary or income from investments. It should include your income and your co-borrower’s income if you are buying a home jointly.

Monthly Debt

How much debt you have directly affects how much house you can afford. When determining how much house you can afford, a good guideline to follow is the 36% rule. Your total monthly debts, including your projected mortgage payment, credit card payments, car loans, student loans, and child support, should not exceed more than 36% of your gross income. This is your debt-to-income (DTI) ratio. The lower your DTI, the more money you can borrow and the more options you have for loans.

Once you input your information into our mortgage affordability calculator, we estimate the amount of house you can afford based on a DTI of 36%. If you want to increase your DTI, you can slide the bar to see how it affects the amount of house you can afford. Most loans require that your DTI does not exceed 45%.

Down Payment

This is how much you expect to put down or contribute to the purchase of your home. Whatever you do not put down, the balance will be financed. Many mortgages require as little as 3% down, which may allow you to purchase a home if do not have a lot of savings or you simply want to leave some money in reserves.

Your down payment plays a big part in our affordability calculator. The more money you put down, the more house you can afford to buy. If you do not have a lot of money saved, you could still get a mortgage with little-to-no money down; it would just decrease the amount of house you could afford to buy. You can use money from savings, investments, or other sources to make up your down payment.

It is recommended that you put down 20% of the home’s purchase price; however, through an FHA loan you may be able to put down as little as 3.5%. Members of the armed services can even obtain a home loan without putting down any amount.

Interest Rate

Your mortgage interest rate makes a difference in how much you spend on your home. Our mortgage affordability calculator has a preset interest rate of 4.000, but you can easily adjust that rate according to today’s estimated interest rates. Interest rates change daily, and your lender determines your interest rate based on your credit profile.

Loan Term

How long do you want to finance your home? The longer your loan term, the more house you can afford. The shorter your loan term, the less house you can afford to buy unless you increase your down payment.

Our affordability calculator assumes a 30-year term, which is the most common type of home loan. You can edit your loan term to a 15-year loan or other type if you wish.

Plug and Play

After entering the above information, and your home price estimate should appear. Adjust the numbers as often as you like until you get a price you believe you can live with.

No one expects you to be a mortgage expert overnight, no matter how many calculations you make. That is why it is vitally important to work with a lender at the very beginning of the process. He or she may have information about down payment assistance and other financing incentives, like lender-paid buydowns, to help you comfortably finance your home purchase. They know the lending rules of the road better than anyone.

A knowledgeable lender can also help you anticipate your true housing costs, beyond just paying your mortgage, making you aware, for instance, of the cash you should have set aside for home maintenance and repairs.

Lastly, work with a reputable lender who not only will walk you through the math and tell you the maximum mortgage you can qualify for, but also will counsel you to select only the mortgage that you feel you can afford.

Learn How Much House You Can Afford Before You Act

Take the First Step with Our Home Affordability Calculator

Keep in mind that our house affordability calculator only provides an estimate of what you could afford. You can call me today to get prequalified and to find out how much you can spend on a home.

You should also bear in mind that your mortgage payment includes not just principal and interest, but also taxes and insurance in most situations. Think of the acronym PITI, which stands for principal, interest, taxes, and insurance.

For property tax information, consult the property profile offered by Trust Lending Solutions. The cost of insurance includes your homeowner’s insurance premium, and, when applicable, any mortgage insurance premium and homeowners’ association fees.



Please call me today to get pre-approved and to find out how much you can spend on a home. Lisa/Broker, Trust Lending Solutions is a dba of The Bani Group, Inc., Call Direct: 818-359-4145 or email Lisa@trustlendingsolutions.com

Forecast: California Home Prices Will Slow, But Not Drop, in 2022

By Brandon Cornett | © 2021, LoanLimits.org | All rights reserved


Key highlights from this housing report:
California home prices are expected to rise more slowly in 2022
But home prices in California are not expected to drop in 2022
That’s according to a forecast from the state’s Realtor association
Supply and demand imbalance is putting upward pressure on prices
Overall, the market is expected to remain competitive next year

Last month, the California Association of REALTORS (C.A.R.) published their housing market forecast for 2022. Among other things, the industry group offered some predictions relating to house values.

C.A.R. researchers believe that home prices in California will rise more slowly in 2022, compared to 2021. Quite a bit slower, in fact. But they do not expect to see a drop in prices any time soon.
California Home Prices Predicted to Slow Down in 2022

According to the state’s Realtor association, home-price appreciation in California will slow down considerably in 2022. That’s according to their long-range housing market forecast, published in October of 2021.

C.A.R. predicted that the median home value in California would rise by 5.2% in 2022. In 2021, the median price is projected to rise by 20.3% (by year’s end). So we’re talking about a significant reduction in annual price growth, from 2021 to 2022.
By the end of this year, the state’s median house value could reach $793,100.
By the end of 2022, the median price point is projected to reach $834,400.

(Of course, this is only a forecast for California home prices. It’s the equivalent of an educated guess. No one can predict future housing trends with complete accuracy.)

Their prediction for 5.2% home price growth in 2022 would actually be a move toward normalcy. The 20% gains seen during 2021 are highly unusual and generally not sustainable over the long term. From an economic and market stability, California could actually benefit from a slowdown in home price growth.




So we shouldn’t view this forecast as a negative assessment of the state’s housing market. On the contrary, sales activity is expected to remain steady throughout 2022.

C.A.R. is predicting that California home prices will slow down in 2022. But the market as a whole will likely remain active and competitive next year.
But Prices Are Not Expected to Drop

Given the meteoric rise in house values over the past 15 months or so, it’s only natural to wonder if California home prices will drop in 2022. But that doesn’t seem likely.

A few cities across the state could see a dip in prices during 2022 — or at least a leveling off. But in the majority of California’s local housing markets, home prices are not expected to drop in 2022.

A slowdown, on the other hand, seems likely. That’s what C.A.R. and other forecasters have predicted. The general consensus appears to be that home prices in California and nationwide will wisely more slowly in the months ahead.

Related: Will houses get any cheaper in 2022?

A few weeks ago, the real estate data company Zillow surveyed a group of housing analysts and economists about future real estate trends. Among other things, the group predicted that house values would slow down nationwide.

To quote that report:


“Experts surveyed expect home prices nationwide to increase a cumulative 31.8% through 2025, the equivalent of an average annual rate of 5.7% — far below the current annual appreciation of about 17%.”

This outlook closely matches the C.A.R. forecast for home prices in California, extending into 2022. House values are expected to slow down, but not drop, over the coming months.