Danielle Lazier

Archive for the 'First Time Buyer' Category

Want my $.05? Danielle’s advice to San Francisco home buyers and sellers.

Tags: Danielle's advice to home buyers and sellers, First Time Buyer, home buying, Home Selling, San Francisco Real Estate, trade-up

10 Things to Remember When Buying Your First Home (or your 5th) in San Francisco

10 Things to Remember When Buying a Home in San Francisco whether it’s a Mission Loft, a Noe Valley Edwardian, a Bernal Heights Victorian Cottage or an Inner Sunset Mid-Century:

1. When buying a home, bite off more than you can chew but not enough to choke. Remember, to get to the penthouse you must first get on the elevator. (Or take the stairs but who wants to do that?)
2. It is not the cost of the home per se; it is the monthly cost to you that matters most.
3. Reasons to buy a home in order of importance:
   1. You want to live there.
   2. Investment Read the rest of this entry »

Tags: 10 things to remember, First Time Buyer

For San Francisco Home Buyers, Why Have Your Own Realtor?

Frequently Asked Question: Why Have Your Own Buyer’s Agent?*

At the risk of overly exciting the bloggers over at Curbed SF with my scintillating content, I’d like to explain the benefits of working with your own agent (Realtor) when you are buying a home in a complex market like San Francisco.

Top 10 Reasons It is Smart to Hire Your Own Agent When Purchasing a Home:

1. It costs you nothing. Your agent works on a contingent basis as opposed to a retainer like a lawyer. Your buyer’s agent will be paid in the form of a commission from the seller’s proceeds upon the close of escrow. You will pay nothing for their help and expertise, and they will only get paid if you find and successfully purchase a home.
2. Even though you do not pay money for their services, you are contractually bound to each other which means your Buyer’s Agent has a fiduciary duty to represent your best interests. Plus, if they are a Realtor (and they most definitely should be!) your agent must adhere to a very strict code of ethics. Your agent will represent your best interest in the purchase of ANY property listed with ANY real estate company or For Sale By Owner.
3. Your San Francisco buyer’s agent will help you determine how much you can afford. Working with your mortgage broker, your agent can give you advice regarding unforeseen costs of ownership and affordability. Just because you are pre-approved for a certain amount does not mean you should be…
4. Your real estate agent will fully explain the buying process to you and prepare you, in advance, for what to expect. They should guide you through the process every step of the way and help keep you informed all of the time.
5. She or he will provide you with statistical and comparable sales information so that you can make an informed choice on the offer price for the home you want. Even though it is pretty easy to find active listings on the Web at sites like Trulia and Zillow, recent, accurate and reliable Sold data remains mostly within the control of MLS members like your agent.
6. Your real estate agent will consult, negotiate and act as your project manager. She or he will negotiate the price and terms of your purchase on your behalf. Your agent becomes your sounding board, your confidante, and sometimes even your therapist during the buying process. You’ll be speaking or emailing with them almost daily during escrow so make sure you like your agent!
7. She or he will walk you through the massive amount of paperwork with clear and accurate explanations.
8. Your Realtor sells property full-time (or at least, they should) so she or he will have access to dependable mortgage brokers, home inspectors, title and escrow companies, home insurance companies, moving companies, etc. They can assist you with the transfer of utilities and be a resource for all sorts of service providers like hardwood floor re-finishers, custom shutter fitters, plumbers, electricians, handymen, painters, gardeners, and so on.
9. She or he will be present during the closing process, keeping you up to date as the loan funds and your names are recorded on the property’s title. Most likely, they’ll attend the closing or signing appointment with you at the escrow company and certainly, be available to review the closing papers for accuracy.
10. A good agent will act as your real estate consultant long after the close of escrow. For example, I often and consistently hear from past clients who need referrals for home repair folks or just want to know what the market is like. Whether or not, they will be selling or buying more real estate, I am there as a resource for them…for life.

Ask about our complementary San Francisco Home Buyer’s Guide: How To Stop Worrying and Love Buying a Home!

* Most agents will act as both Buyer’s and Seller’s Agents depending on their clients’ needs. When I say “Buyer’s Agent,” I am referring to a full-time licensed Realtor who will represent you as your buyer’s agent. They will also work with sellers on other transactions. Personally, I’m not a proponent of “buyers-only” agents b/c their knowledge of both sides of the transaction will be limited.

Tags: buyer's agent, First Time Buyer, San Francisco Real Estate, why have your own agent

California Housing Prices Continue Down BUT Number of Home Sales Continue Up

According the 2009 California Housing Market Forecast from the California Association of Realtors, prices will continue to decline into early 2009 while the number of sales will continue to increase. Of course, we usually have a holiday/winter slowdown.

What does this mean?

On the one hand, prices continue to adjust downward. Most economists foresee the decline to level soon-ish. How’s that for vague?

On the other hand, more homes are selling than was projected.

This signals the beginnings of the turnaround. Buyers, in particular first time buyers, are getting back into the market. Many would-be home buyers are realizing that this is a rare opportunity for them and they don’t want to miss it. Rates are low and prices are down. No one knows how long it will last.

As housing inventory lessens due to increased buyer activity, the market will be able to rebound. It is all about supply and demand, right?

Keep in mind that the following is for all of California. As one of the world’s biggest economies (8th, right?), our real estate market is huge and varies greatly from place to place.

My advice to folks considering buying or selling San Francisco real estate in today’s market:

To the first time buyer: BUY (This is a “once in 10 to 15 years” kind of opportunity. TICs, Condos, Lofts and some single family homes are ON SALE. Rates are great and loan options abound for those with low or high down payment.) Read more here. FHA loan info here.

To the home owner of 1-3 years: HOLD (Stay put and enjoy your home. It will be a great investment in time. Don’t worry! You own your home in one of the World’s most coveted Cities! You are not a renter! You save money in taxes!)

To the homeowner of 3-5 years: HOLD or TRADE-UP (Ask us to help you determine what your current home is worth AND what your next dream home costs with today’s discounts. Depending on the answer, it might be more profitable to move-up. Plus you get the house of your dreams. Benefits of Trading Up in a Down Market HERE.)

To the homeowner of 5+years: TRADE-UP or DOWNSIZE (Long-term gains in San Francisco real estate remain substantial. Take advantage of the discount in the home your really want, whether it’s a easy-living South Beach condo or a trophy house on Liberty Hill.)

From CAR:

C.A.R. FORECAST CALLS FOR PRICES TO LEVEL OUT AND SALES TO RISE IN 2009
Home prices throughout most areas of California will post declines next year, while sales of existing homes will continue to rise in 2009, according to C.A.R.’s “2009 California Housing Market Forecast,” released today during CALIFORNIA REALTOR® EXPO 2008 (www.realtorexpo.org), running through Thursday, Oct. 16 at the Long Beach Convention Center in Long Beach.

“The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year,” said C.A.R. President William E. Brown. “Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009.”

The median home price in California will decline 6 percent to $358,000 in 2009 compared with a projected median of $381,000 this year, according to the forecast. Sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008.

“Sales in 2008 will be ahead of last year by 12 percent, with a further increase of 12.5 percent expected in 2009,” said C.A.R. Chief Economist Leslie Appleton-Young. “However, the next couple of quarters in late 2008 and early 2009 will be marked by seasonal decreases in activity, with a pickup expected by the second quarter of next year.”

Tags: CAR Economic Forecast, Housing Forecast

Just 5 of the Reasons Why I Wish I Was a San Francisco First Time Buyer Right Now

Just 5 of the Reasons Why I wish I was a First Time Buyer Right Now:

1. I’d finally have a **** chance to get my first choice home rather than lose out over and over again in outrageous bidding wars!!

For the first time in many, many moons (most say since 1990-1991), San Francisco real estate is not a crazy seller’s market. The playing field is MUCH more even. In some micro-markets, it is even a buyer’s market.

In general, the market is balanced and for a chronically “low supply / high demand” city like San Francisco, this means the outlook is extremely good for home buyers.

Although this may last well into 2009, it will not last forever. SF has had a strong, expensive real estate market since the Gold Rush and this latest financial debacle is not likely to change this reality.

2. I could actually pay a decent price for my starter home.

Okay, there is no “fire sale” in San Francisco but there are some darn good values right now. Home price appreciation has stagnated and in many cases, home values are down (think lofts, TICs, some condos, and single family homes).

Over the long-term, even 5 years or more, San Francisco real estate prices remain way up. Remember, real estate is a long-term investment… However, in the short-term, prices are down or flat. This means a home buyer can expect to pay 2005/2006 prices for many properties.

THIS IS A RARE, ONCE IN A DECADE OR MORE HOME BUYING OPPORTUNITY.

Read the rest of this entry »

Tags: First Time Buyer, home buying, San Francisco Real Estate

How to choose a mortgage broker…

Recently, a client asked me about how to choose a mortgage broker.

She wanted to know if it was necessary or smart to get preapproved by more than one lender since she was still figuring out who would have the best interest rates and programs for her. She wasn’t ready to choose a mortgage broker yet so she was unsure of how to get more information and proceed on preapproval.

Here’s what I told her.

My recommendation is to work with one mortgage broker. You will get the best service and the best rates from someone who knows that you are committed to working with them.

They can feel confident knowing that you are taking their time and their help seriously. This will make them more attentive and more apt to give you the best options available. Experience shows that the best professionals, be them Realtors, mortgage brokers, CPAs, attorneys etc, get most of their clients through referral so it behooves them to provide excellent, valuable service.

No mortgage broker can forecast precisely what rate you are going to get ahead of time. They can give you estimates based on today’s rates but until you have a property and lock in a rate, it will change. Imagine a stock broker telling you that you will be able to buy Google stock in a month, 6 months, a year for $x amount. Interest rates like stock prices fluxuate daily and it is impossible to 100% predict the future.

So what should you do if you are not ready to buy but want to have a sense of what you can afford so you can casually look at property? Get prequalified.

I recommend my clients interview a few mortgage brokers (preferably referrals from me or other trusted advisors in their lives) on the phone and then set up an in-office meeting with the 1 or 2 person they feel will best represent them. Based on your consultation with them, choose a mortgage broker with whom to help. Have this person do your full preapproval when you are about 3-6 months away from your desired moving date.

Do not have your credit score run by multiple mortgage brokers or lenders as it can lower your score. You can look up your own score with no harm done by going to www.myfico.com and pulling a report yourself.

Use this score to get prequalified rather than preapproved. You’ll have a good sense of what you can afford so you can look around. When you get serious about home buying, you can do the full preapproval.  

Tags: loan preapproval, mortgage broker, preapproval v prequalification

Does the Housing Relief Bill Help San Francisco Home Buyers and Home Sellers? Yes! Here’s How…

How the Housing Relief Bill helps San Francisco home buyers AND sellers:

• Permanently raises the high-cost FHA and conforming loan limit to $625,500 (up from $417,000).
  • Right now and until December 31, 2008, the new conforming loan limit is even higher. In San Francisco, the higher loan limit is $725,750. This is only a one-year cap and will go down to $625,500 in 2009.
• San Francisco First time buyer tax credit of $7,500 for home purchases made before July 1, 2009. The credit applies retroactively to April 9, 2008.
  • Did you purchase your first home after April 9, 2008? Talk to your CPA about the credit so you don’t miss out.
  • I hear it’s more of a deferred loan than a flat out credit but still. In high-cost cities like San Francisco, every dollar helps make home ownership more affordable.

WHY SHOULD YOU CARE?

• FHA loans are safe and affordable. They are typically 30-year fixed rate loans. They have easier qualifying guidelines in terms of credit score and down payment, like 3% or 5% down. With loan amounts of $725,750 or even $625,500, you CAN purchase a nice property in San Francisco, say a single family home, 2-unit buildings or potentially a condo. Plus, you don’t have to be low down payment. You can put 50% down if you want! You still get the benefit of these safer loans.
• For years, San Francisco home values increased but the conforming loan limit did not. Most of us were stuck with jumbo loan financing, which meant higher rates and shorter terms (typically). Now, many home buyers can purchase with a conforming loan and thus get the conforming loan interest rate.
• That $7,500 tax credit is like getting your property tax or closing costs paid for you! You need less money up-front to stop wasting money on rent.

WHO SHOULD PAY ATTENTION?

• Potential home buyers who have been watching the market, saving their money and biding their time. Prices may or may not come down a little more but this highest loan limit will be gone by year’s end.
• Home owners who have interest rate terms resetting soon or loans they’d like to refinance. You may have better refinancing options than even 6 months ago. It’s worth a call to your mortgage broker…
• Home sellers should pay attention because these loan options may make their home sale easier and more profitable by allowing more potential buyers into the pool. Your agent should understand these new loan products so they can talk about them with potential home buyers.

Tags: First Time Buyer, housing relief bill, San Francisco Real Estate

Calling All San Francisco First Time Buyers: Why You Should Buy Your First Home Now

10 Reasons You SHOULD Buy Your First Home Now (or very soon)

• While financing sucks for most home buyers right now, it is actually very good for San Francisco entry-level or first 1st time buyers (prices up to about $800,000).
  • Higher loan limits for FHA loans (and super conforming loans) mean fantastic loan options for loan amounts up to about $729,000 in San Francisco. With only 3%-5% down payment, you CAN purchase either a single family home or condo in a larger building AND obtain a really safe, 30-year fixed interest rate loan. This is very new and very exciting.
  • The loan limit DECREASES next year so to make it work best in San Francisco, buy in 2007.
• Follow the leaders not the followers.
  • Prices are down so you should be buying. Prices may or may not come down further but as the investment leaders know…. timing the market is a fool’s game. Be happy that you can buy at or very near the bottom and move on with your fabulous life.
• Following #2, most folks are in fear-mode right now or they are waiting for prices to fall further. This means less competition for you!
  • Let the masses wait until the media reports the market is recovering (and we are already seeing glimmers of this) while you take advantage of the even playing field, the great loans available in 2007 and become a homeowner. Most folks make their buying decisions on emotions rather than facts. The market is down so we panic and do nothing when we should be buying.
• The markets may be down but your job is solid and you could use the tax break.
  • Talk to your tax adviser. You will be surprised by how much money you will save as a home owner. If can afford market rate rent in San Francisco and have a little bit of savings, you are likely to be able to afford a starter home in SF.
• The seller may even throw in the kitchen sink.
  • Seriously, not only is their less competition for the house you want, you may even be able to negotiate a credit to help pay your closing costs or help you replace that nasty shag carpeting with trendy green bamboo flooring.
• Owning is just much cooler than renting.
  • Let’s face it, most of us have that home ownership dream. It is very cool to be able to host a housewarming party at a house you actually own. You can do what you want, change what you want, create your party central or your peaceful sanctuary. The space is yours to do with as you please. (Well, we hope you follow the law and neighborly codes of conduct but you get the point.)
• You don’t have to live in a rental to find your soul mate!
  • There is no rule stating that you must be a renter to get hitched. Truly, too many of us wait around for the perfect partner before we achieve the financial security of home ownership. What is up with this? Why not be that much more financially secure and successful when Mr or Mrs Right comes a knockin‘? You can always keep your 1st place as a rental or sell it and buy a bigger home together. Single women are getting much savvier at this. They are the largest segment of home buyers after married couples. Yet, I am talking to everyone here! Guys, you too can commit to your own home. It doesn’t have to be for forever…
• Your pet can poop in their own yard!
  • Seriously, folks, I’m pretty sure I moved out of my condo and bought a little single family home so my dog would be happier! Moving out of the Mission didn’t exactly help my nightlife, that’s for sure. Being able to stumble home from the bars is a benefit in one’s 20s but in one’s 30s, your dog having her own Barbie Dream Cottage becomes much more important. Plus, I can always take a cab home or heaven forbid, the bus.
• Your parents have a place to stay when they visit. Okay, this may be more of a con, depending on your situation.
• Well, I have to say it. You can raise your family in your own home. Let that one sink in a little. It is deep and….important. Of course, it is crucial that you buy what you can afford as the benefits of home ownership on your family come from the stability & consistency of the home.

Who will benefit MOST from the new FHA financing available in expensive Cities, like San Francisco?

First Time Home Buyers Who:

• want to purchase a home between $575,000 and $800,000.
• have secure, steady jobs with retirement savings but little savings for a down payment.
• may or may not have good credit. FHA loans don’t require good credit!
• want safe, affordable home loans.
• understand that home ownership benefits them.
• want to take advantage of San Francisco’s “relative” buyer’s market.
• have their own reasons for buying instead of renting and are willing to buy the best home that they can safely afford.
• are realistic about their starter home. They want to get into the market and stay put for about 4-5 years. Then, they’ll move up to a different neighborhood or bigger home.
• want either a single family home or a condo in a larger building. (FHA loans don’t usually work in 2-12 unit buildings…)

Wondering what kind of home you can get in San Francisco for less than $800,000? Right now, there are 180 single family homes for sale between $575,000 and $800,000. Click here to see what is for sale right now.

575k-800k-san-francisco-homes

Tags: 000, fha loans, first time buyers, single family homes, under $800

San Francisco Real Estate Videos of Interest to You!

Tags: sfar videos, tom sinkovitz

You can still buy a home in San Francisco with 10% down payment.

Hey San Francisco home buyers, you can still buy a home with 10% down payment.

You should be gainfully employed with great credit, savings and a down payment but you do not need 20% down. There is a lot of misinformation out there, causing many successful young professionals who know they should own and want to buy when the market’s at the bottom but think there are no more loans for them.

There are great loans for you, I swear it!

For example, right now I am helping a women buy her first San Francisco home. She has owned real estate where she used to live in the Midwest but has been renting here in San Francisco, paying a lot of money each month with no tax incentive and no return on her investment.

She is very successful and makes good money. She also has good retirement savings. Yet, she gives Uncle Sam way too much of her paycheck! She’s now preapproved for really secure & safe financing and is ready to go get a deal on a condo in the Castro!

Here are this week’s rates for San Francisco purchases:

Loan Programs
30 Yr Fixed Conforming to $417K						6.375%
“0.00″ POINTS
			APR =	6.481%
30 YR GOV AGENCY JUMBO						6.750%
“0.000″ POINTS
			APR =	6.611%
30 YR REGULAR JUMBO						8.000%
“0″ POINTS
			APR =	7.875%
7 YR FIXED JUMBO TO 1 MILLION						6.250%
“1.25″ POINTS
			APR =	6.062%
Program		Rate	Points	APR
6 Month Libor		5.625%	.50pts	5.713%	Up to 1Mill	Life Cap 10.125
INTEREST ONLY OPTIONS ARE AVAILABLE!

Brought to us by Monica Di Perna of Guarantee Mortgage. Call her directly if you want more details or want to verify the numbers.

Tags: 10% down, First Time Buyer, low down payment